Private equity and venture capital (PE & VC) can create positive changes in society. It boosts the economy by financing innovative companies that bring new products and services to the market and create new jobs. These investments help companies to grow and go international, improving their competitiveness and creating opportunities that build the future. PE & VC not only boosts economic growth, but it can also contribute to sustainable development by supporting environmentally friendly technologies and responsible business models. This makes PE & VC key factors in improving the sustainability of our economy and society, laying the foundations for future opportunities.
The Finnish Venture Capital Association’s aim is to strengthen the knowledge of the PE & VC sector as a pillar of sustainable economic growth and thus as an enabler of well-being in Finland. PE & VC is an important part of Finnish society, and the success of the growth company ecosystem drives Finland forward. Our goal is a world-class operating environment where Finnish legislation and public authorities are supportive of PE & VC activities and where PE & VC investors are seen as a positive force for growth.
PE & VC -backed companies play a significant role in the Finnish economy. With a total turnover of €54.9 billion, companies currently or previously owned by PE & VC investors account for 11% of the total turnover of Finnish companies. These companies employ a total of 207 000 people, of which an estimated 140 000 in Finland, which is as many as the entire ICT sector in Finland.
PE & VC investors are active owners who seek to develop and grow their portfolio companies during their ownership. They also play an important role in creating new large companies in Finland. Of Finland’s 500 largest companies by turnover, 18% have a PE & VC background, and of the 179 companies that have made the list of largest companies in the last ten years, as many as 30% have received PE & VC investment during their history.
The development of turnover and headcount of companies that received their first investment from Finnish PE & VC investors between 2012 and 2021 during the period of PE & VC ownership is remarkable. PE & VC target companies have grown ten times faster in terms of turnover and up to 56 times faster in terms of headcount than similarly sized peer companies in similar industries. On average, the target companies have grown by 43% in turnover and 28% in headcount per year within five years of the initial investment, compared to 4% and 0.5% respectively for their peers.
The combined turnover of Finnish companies invested in by PE & VC investors – 5% of the total turnover of Finnish companies.
Number of employees in PE & VC backed companies in Finland – 7% of the total number of employees in Finnish companies.
Over the past ten years, 30% of the companies that have made the list of the 500 largest Finnish companies have received PE & VC investment.
PE & VC backed companies have grown ten times faster in terms of turnover than their peers.
In terms of headcount, the growth rate of PE & VC backed companies has been 56 times faster than that of their peers.
