Is your company a startup?

A young, innovative company that usually strives for fast, international growth with a scalable business model.

Is your company a growth company?

A company with not only established business and turnover, but also with potential for future growth. The company’s turnover can range from a few million euros to hundreds of millions of euros.

Find the right investor

Finding the right investor that operates in a specific industry and a specific stage of development, as early as possible, will accelerate a company’s capital raising and also save costs.

 

When it comes to securing venture capital or private equity funding, working actively comes a long way. Finding the right investor is an important part of the process.

 

It is recommendable for a company to familiarize itself with an investor’s criteria before seeking investment. Generally, investors are more interested in companies that have already developed a finished, commercially viable product. Companies in the seed stage involve a significantly greater risk. In these cases, it is important to find an investor that specializes in seed stage companies.

Startup investors

There are many types of venture capital firms that finance startups. The emphasis will vary, for example, on the size of the investment, the company’s development phase and the industry. The investment process is easier when you are able to approach the right venture capital firms.

 

Investment size
Venture capital investors invest in startups that don’t necessarily yet have turnover. In the earliest stages of development, the rounds of financing range typically between 200 000 to 500 000 euros in size. In further stages, the rounds can be worth millions of euros and investors also require proof of demand, a working business model and evidence of the team’s capability to achieve international growth.

 

Industry
Some investors – especially venture capital investors that specialize in startups – focus on a certain industry or business model. Identifying the right investor will not only help in securing the investment, but also in bringing the right kind of expertise to your company.

 

The role of the investor in finding funding
The further along a company is, the more likely it is that more than one investors will join in on a round of financing. Even then, one of investors will take the lead. This investor is referred to as the lead investor. They will be in charge of running the round, will play an active role in the company’s operations and will want a seat on its board. Other investors typically take part in a multi-investor syndicate, but with no interest in board membership. Therefore, if your case requires a lead investor, it is advisable to first focus on finding one.

 

History
Getting acquainted with an investor’s past investments will help shed light on what kinds of growth stories the investor has previously built, what industries they have been successful in, and how well they have cooperated with the owners and management of former investee companies.

 

Management
The company’s management will work very closely with the investor. Naturally, personal chemistry plays a big part.

 

Ways of operating
Venture capital and private equity investors have their own ways of operating when making investments and developing companies. It is important to make sure that these ways feel right. Different variables include ways of analyzing the company, building growth strategies and working with the board. Some of the funds will appoint their own employee as a chairman of the company’s board, while others use an outside chairman. In any case, the board usually has outside members with industry-specific experience.

Growth company investors

There are dozens of private equity investors in Finland that specialize in growth companies. The largest investors invest in companies with a revenue of at least 15 million euros, but smaller companies can also invest in companies with a revenue of at least 2 million euros. However, investment decisions are much more than figures: it is worth comparing private equity investors to find a suitable partner for your company.

 

Investment size
When it comes to established growth companies, investment rounds are typically bigger. Even so, investment size can vary according to the investor.

 

Industry
Investors specializing in growth companies usually operate on a wider basis, with no focus on a certain industry.

 

The role of the investor in finding funding
The further along a company is, the more likely it is that more than one investors will join in on a round of financing. Even then, one of investors will take the lead. This investor is referred to as the lead investor. They will be in charge of running the round, will play an active role in the company’s operations and will want a seat on its board. Other investors typically take part in a multi-investor syndicate, but with no interest in board membership. Therefore, if your case requires a lead investor, it is advisable to first focus on finding one.

 

History
Getting acquainted with an investor’s past investments will help shed light on what kinds of growth stories the investor has previously built, what industries they have been successful in, and how well they have cooperated with the owners and management of former investee companies.

 

Management
The company’s management will work very closely with the investor. Naturally, personal chemistry plays a big part.

 

Ways of operating
Venture capital and private equity investors have their own ways of operating when making investments and developing companies. It is important to make sure that these ways feel right. Different variables include ways of analyzing the company, building growth strategies and working with the board. Some of the funds will appoint their own employee as a chairman of the company’s board, while others use an outside chairman. In any case, the board usually has outside members with industry-specific experience.

“You should always ask the investor’s former portfolio companies about what the cooperation with the investor was like. More often than not, venture capital and private equity investors will be glad to give the contact details of former portfolio companies as references”

 

MB Funds, Juha Tukiainen