This year, the Finnish Venture Capital Association is celebrating its 35th anniversary. It is a wonderful milestone for the association: it has accumulated a wealth of history and experience, yet its gaze is firmly fixed on the future. Now is the time to be ambitious, curious and dynamic – and that is exactly what our industry is like today too.
In recent years, the status and visibility of the private equity sector have changed significantly. Until quite recently, the debate on growth and the importance of private equity investors was all too often confined to narrow perceptions. Now, understanding has deepened: more and more people recognise that Finland needs growth – and that growth needs companies that invest, innovate, expand internationally and dare to take risks. The role of private equity investors as partners in growth is also being recognised more clearly.
At the same time, it has become increasingly clear that the role of private equity investors is not merely to provide funding. The sector’s significance stems from expertise, networks, ambition and active ownership. It is precisely this combination that helps to build competitiveness, supports innovation and creates new success stories. Given that private equity investors play such a vital role in enabling growth, the operating environment must also be right.
Progress has been made in the Association’s advocacy work, but there is still work to be done. At last spring’s mid-term review, a number of decisions favourable to our sector were taken, and it is encouraging to see that many of them are already at an advanced stage of preparation. Nevertheless, key issues remain unresolved. Challenges relating to foreign investors, particularly fund-of-funds investors, remain unresolved, as do tax issues concerning public benefit organisations. Resolving these issues is important if we wish to strengthen the Finnish fund sector’s ability to grow and compete internationally.
We are also looking to the future. EU regulation will have a significant impact on our sector in the coming years. On a positive note, the problems posed by a fragmented single market and inconsistent regulation have finally been recognised in Europe. If capital does not flow efficiently and funds do not have the conditions to grow, Europe will fall behind in the competition. That is why the aim of simpler regulation and stronger European funds is the right one. This is also the aim in Finland: we need larger, stronger and more international funds.
The role of the Finnish Venture Capital Association is to help ensure that barriers to growth are removed, the movement of capital is facilitated, and the rules of the market remain predictable. Finland cannot thrive without growth. And that is precisely what private equity investors are working to achieve.
In the midst of this anniversary year, it is also worth remembering the association’s core mission: to bring people together. These encounters foster trust, and trust in turn gives rise to new ideas, partnerships and innovation. A sense of community is therefore also an important part of the sector’s future.
We have come a long way, but what lies ahead is even more important. The future is being built right now – in Finland and across Europe – and private equity investors are playing a key role in this work.
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Additional information:
Anne Horttanainen, Managing Director, Finnish Venture Capital Association
anne.horttanainen@fvca.fi
+358 40 510 4907
