Case: Fourdeg

Fourdeg_logo_RGB_1280x1549pxEvery property owner knows that heating costs are rising year by year. Most means to save the costs are either too expensive or do not save enough to make sense economically. Sounds depressing, doesn’t it? But not for long; Fourdeg is developing a product for water radiators heated buildings that will ensure both the energy savings as well as improved comfort temperature control with a superfast investment payback. Even better, the product can be installed within minutes and installation doesn’t require professional training. If something, that’s better with less.

Fourdeg system allows energy savings in heating up to 30% through intelligent self-learning cloud driven heating optimization algorithms. In addition customers benefit from full control of the system through web and mobile as well as better living comfort through significantly improved temperature accuracy.

Fourdeg system allows energy savings in heating up to 30% through intelligent self-learning cloud driven heating optimization algorithms. In addition customers benefit from full control of the system through web and mobile as well as better living comfort through significantly improved temperature accuracy.

Before the investment Fourdeg had built first prototypes and secured first pilot customer.

”We saw from the beginning that our smart heating control system and evident demand combines as an inspiring market opportunity. But that’s not enough for a successful start-up. To thrive through the growth phase startup needs to have right kind of expertise and sufficient resources. Butterfly makes us a perfect partner by providing the both; financial resources as well as the competence.” (Markku Makkonen, CEO of Fourdeg, Inc.)

Intelligent cloud controlled thermostat that is easy to install, even by end customers, is at the core of the Fourdeg offering.

Intelligent cloud controlled thermostat that is easy to install, even by end customers, is at the core of the Fourdeg offering.

Butterfly invested into Fourdeg because of their clear value proposition, huge market potential and because the product allows use of truly revolutionary distribution channel. The Fourdeg team is leanly operating well balanced mixture of talent and it has shown commitment and ability to learn fast. Butterfly investment will be used to develop the first product version for the pilot and to validate value proposition, especially the cost savings related to the product.

Case: WhileOnTheMove

While On The Move logoThe first product of WhileOnTheMove is Daisy – a complete day care solution. Daisy includes mobile applications to day care employees and child-minders, mobile/web service to day care management and mobile/web service to parents. Real life tests have shown that in a city of 100 000 habitants Daisy can relocate over 65 000 hours of manual paperwork into more important tasks; taking care of the children. Furthermore a single 24/7 daycare unit can save up to 180 000€ a year by deploying Daisy to allow parents easily inform their weekend day care needs. This value proposition together with the fact that Europe alone represents over 100 million euro market potential for such product clearly makes the case.

Before the investment WhileOnTheMove has launched their product, secured several major customers, such as cities of Oulu and Jyväskylä as well as partnered with market leading distributor in France, who has already made the first sale there.

”From the very beginning WhileOnTheMove has targeted to international markets. Today we have closed our first international partner agreements and deals. The next step is to boost even more on international sales. To achieve the goal we need both funding and guidance. We see Butterfly as a perfect partner helping us in both.” (Kari Kivistö, CEO of WhileOnTheMove)

Butterfly invested into WhileOnTheMove because their product offers good fit to market requirements that are changing and clear cost saving value proposition. The product is launched; gaining traction; and already agreed sales provide significant and relatively long term revenue. Furthermore, the WhileOnTheMove team has shown significant personal commitment and demonstrated their ability to deliver. Butterfly investment will be used to speed up the sales, especially internationally.

Butterfly Ventures Invests Into New Startups

The ramp up of Butterfly Ventures investment activities continues at high pace; it has selected four new investment targets. The companies are: CadFaster, WhileOnTheMove, CaddieON and Fourdeg. With Butterfly Ventures investing in them, the companies will speed up their market-entry and accelerate their internationalization.

CadFaster is employing a modern business model and lean customer centric product development methods. Therefore we also needed an investor who really understands these.” told Raimo Kuismin, Chairman of CadFaster, Inc., “The real added value investor makes the difference. The role of Butterfly while creating our business model and moving towards lean startup practices has been instrumental already before the investment.” he added.

The first investment rounds vary between approximately 40 000 and 250 000 euro, from which the Butterfly Ventures share varies from 20 000 to nearly 70 000 euro. In addition, parties have agreed on the milestone tied follow-on funding that may increase the total investment of Butterfly Ventures up to 500 000 euro per company.

One can divide the investment targets roughly into two distinct groups; pre-seed stage companies where our investment enables the first stages of product development and seed stage companies where the focus is on product and business model validation.” said Matti Kanninen, CEO of Butterfly Ventures.

Butterfly Ventures will make first time investments in approximately ten new target companies per year. Due to investments announced now the number of invested companies rises up to seven for the year 2013. Furthermore, as some of the portfolio companies have already met the performance targets set for the follow-on investment round, follow-on investments are becoming current.

Enquiries and additional information

Matti Kanninen, managing partner
Phone: +358 (40) 5455877
Email: matti@butterfly.vc

Butterfly Ventures

Butterfly Ventures is an early stage focused startup development and venture fund management company located in Oulu, Finland. Behind the company are Matti Kanninen, Antti Kosunen and Juho Risku as well as Board members Jukka Mäkinen and Jari Pasanen. Butterfly Ventures has offices in Oulu and Helsinki.

Web: http://butterfly.vc

Northern Startup Fund

Northern Startup Fund is a venture capital fund managed by Butterfly Ventures that invest into early stage startups. It is the first asymmetric fund in Finland. In the case of Northern Startup Fund the asymmetry means that the public investor, which benefits also in a form of tax income, lowers the risk of a private investor by offering a possibility for returning the invested capital and profit share before the public investor. From the private investors’ point of view this improves the risk – return expectation ratio significantly. The investment capital of Northern Startup Fund will be 10 million €, half of which comes from the City of Oulu and the other half from private investors.

Resources

Download PDF: EN, FI

Case: FilmMe Group

FilmMe LogoPeople want to create interesting content of their activities. For instance helmet cameras have spread like a wildfire. Yet there’s been only one way to get footage of yourself in action; having someone else filming you. Usually it’s either difficult, expensive or both to shoot a high quality video of yourself and share it in social media. FilmMe has a unique solution to this need. FilmMe is a patent pending automated camera system that shoots professional quality HD video of the subject without a cameraman. It tracks the movement, pans and zooms as needed and finally sends the video automatically to ones’ FilmMe account. The whole process is initiated with a press of single button. That’s easy.

The FilmMe system tracks the location of the wristband, pans and zooms the camera accordingly.

The FilmMe system tracks the location of the wristband, pans and zooms the camera accordingly.

FilmMe was the highest scoring Moneytalks Investor forum winner in the history with average score of 4.53 out of 5. Prior to investment they had also secured 180k€ worth of letter of intents from prospective customers.

”FilmMe is on the verge of international breakthrough with a product that has a market potential of several hundred millions. Because the vast majority of our target market is international we wanted a professional investor, who can help us ahead also in the longer run. In addition to financing Butterfly brought valuable knowledge for instance into areas of IPRs, distribution channels and business models.” (Tapio Koivukangas, CEO of FilmMe Group)

The camera system is installed into venues, but the end users get a stylish wristband that identifies the user, allows to start and stop shooting the video and is used for automated camera control.

The camera system is installed into venues, but the end users get a stylish wristband that identifies the user, allows to start and stop shooting the video and is used for automated camera control.

Butterfly invested into FilmMe because the value proposition for different actors is clear, there’s attractive business model, demonstrated market traction and a billion dollar market opportunity. Furthermore the team is well balanced mixture of technological skill and top notch marketing expertise. In addition FilmMe has all characteristics of a naturally viral product. Butterfly investment will be used to further validate the business model and establish the required metrics to leverage the valuation up for follow-on financing rounds.

Butterfly Ventures Announces the First Investments

Butterfly Ventures announces the first investments of Northern Startup Fund into three innovative startups: FilmMe Group, NWG Tools and MyPose. The companies are all based in Oulu, Finland. With Butterfly Ventures investing in them, the companies will speed up their market-entry and accelerate their business growth.

The first investment rounds vary between approximately 100 000 and 200 000 euro, from which the Butterfly Ventures share varies from 40 000 to nearly 100 000 euro. In addition, parties have agreed on the milestone tied follow-on funding that may increase the total investment of Butterfly Ventures up to 500 000 euro per company.

We were contemplating between traditional angel investment and Butterfly at first. In the end, it was evident that Butterfly due to their experience and business knowledge would be an excellent partner – also for longer run”, said Sami Jussinniemi, CEO of NWG Tools “The benefits were clear, because Butterfly helped to develop an excellent way to protect our business and intellectual property rights already before the investment.”, he added.

The announced portfolio companies have been selected out of nearly 200 startups that were evaluated in the past six months. What these companies have in common is a sizeable market potential, appealing value proposition and business model, as well as, an excellent team. In the majority of target companies, there is also a real opportunity to protect the market position either using IPRs or the business model.

We are acting according to lean-ideology. In practice this means, for instance, that we also aim to test a certain concrete and relevant aspect of the business with the investment, such as, how the product will be spread virally.”, told Matti Kanninen, CEO of Butterfly Ventures “It is great that startups seem to highly value the help and support we can give them already during the evaluation process prior to the investment.”, he added.

In addition to the announced investments, Butterfly Ventures has several other cases under work to become investments in the near future. The majority of these companies are either in a seed or pre-seed stage. Butterfly Ventures will make first time investments in approximately ten new target companies per year.

Enquiries and additional information

Matti Kanninen, managing partner
Phone: +358 (40) 5455877
Email: matti@butterfly.vc

Butterfly Ventures

Butterfly Ventures is an early stage focused startup development and venture fund management company located in Oulu, Finland. Behind the company are Matti Kanninen, Antti Kosunen and Juho Risku as well as Board members Jukka Mäkinen and Jari Pasanen. Butterfly Ventures has offices in Oulu and Helsinki.

Web: http://butterfly.vc

Northern Startup Fund

Northern Startup Fund is a venture capital fund managed by Butterfly Ventures that invest into early stage startups. It is the first asymmetric fund in Finland. In the case of Northern Startup Fund the asymmetry means that the public investor, which benefits also in a form of tax income, lowers the risk of a private investor by offering a possibility for returning the invested capital and profit share before the public investor. From the private investors’ point of view this improves the risk – return expectation ratio significantly. The investment capital of Northern Startup Fund will be 10 million €, half of which comes from the City of Oulu and the other half from private investors.

Resources

Download PDF: EN, FI