Gigglebug Entertainment is a Finnish animation studio founded in 2013 by Anttu Harlin and Joonas Utti. The pair’s shared passion for creating entertainment that brings joy and laughter to people’s lives was the driving force behind founding the company.
“We wanted to create something that spreads joy and makes the world a better place by making children and families laugh,” says Anttu Harlin, CEO and co-founder of Gigglebug. This idea remains as the company’s mission and directs everything it does.
The company’s name comes from the name of its first character and programme; Gigglebug has a laugh so loud and infectious that it spreads joy to everyone around it. The show first aired in spring 2015 and has since been viewed millions of times.
Spreading joy and laughter
Gigglebug’s activities include the development and production of characters and stories both for its own use and for other companies. In-house productions such as Gigglebug and Yellow Yeti have brought the company international recognition. Gigglebug has also worked on a number of international projects, such as 101 Dalmatian Street and Merry Little Batman, with major international clients like Disney and Warner Brothers. In addition, Gigglebug’s productions are distributed by Netflix, Nickelodeon and Amazon.
Investing in original characters and stories means making significant investments into their development, pre-production and piloting. Once pilots are ready and distribution deals are secured, the company will target long-term success in television sales, licensing and ancillary products. Gigglebug wants to create and build brands that do not just reach their audience momentarily but build long-term relationships of affection.
Private equity investor to boost growth
Year 2016 was a key turning point for Gigglebug when private equity investor IPR.VC came on board to support the company’s growth. Before this, the company was still a relatively small player in the animation field, but its vision and ambitions were big. It was therefore clear for Gigglebug that in order to grow internationally and reach larger markets, outside help and support was needed.
IPR.VC is a Finnish private equity fund specialised in investing in creative content and intellectual property rights. It was looking for promising companies with the potential to create long-lasting brands with sustainable value. Gigglebug met the criteria perfectly.
“In Gigglebug we saw the potential for a studio that was not just based on individual projects, but a studio that could create a long-lasting legacy through its own brands,” recalls Tanu-Matti Tuominen, partner and co-founder of IPR.VC.
The involvement of a private equity investor enabled the company to expand rapidly and develop internationally. Gigglebug’s growth since IPR.VC’s involvement has been spectacular: the company has grown from a team of less than ten to an organisation of almost 200 people, and its turnover has increased more than 40-fold.
Creativity as the key factor for growth
The role of the private equity investor has not been limited to just providing financial support. IPR.VC has provided valuable strategic insight that has helped Gigglebug to centralise its resources and concentrate on its strengths.
“When we started working with IPR.VC, we had no idea how much they were going to focus on supporting our creativity,” says Harlin. “We thought the investors would be focused mainly on numbers and reporting. However, it quickly became clear that it was in the investors’ interest that we spend as much time as possible on creative work. They saw value in our ideas, which was a positive surprise for us.”
It is for this reason that Harlin and Utti have found working with IPR.VC particularly rewarding. The emphasis on creativity has helped Gigglebug stand out from its competitors and achieve a position where the company can proudly showcase Finnish expertise on a global scale.
“As a Finnish company, it doesn’t come naturally to say that we are good because we are creative, but IPR.VC encouraged us to be just that. They understood that creativity is the key to our growth and our values,” Harlin says.
Achieving success through global crises
The global crises of recent years, such as the pandemic, the war in Europe and global economic uncertainty, have affected many companies. Despite the difficult times, Gigglebug has managed to do exceptionally well and has continued to steadily grow. The success is due to its diverse business model: the company has the ability to develop and produce its own brands and stories, but also to provide services to other production companies. The combination of the two business areas has been Gigglebug’s strength, especially during times of crisis when many other companies were struggling to survive.
“We have been very successful because we are not dependent on just one product or service,” Harlin explains.
As the Hollywood entertainment business market decreased during the pandemic, and many large companies became more cautious with their investments, Gigglebug’s position was strengthened. The company saw that the crisis in Hollywood brought new opportunities to Europe, especially for smaller production companies.
“Our productions typically last about two years and we’ve been lucky to have a steady flow of work even in the midst of uncertainty,” says Harlin. Now that the market has started to recover, Gigglebug is in a stronger position than ever, ready to seize new opportunities and continue to grow.
The international breakthrough of Finnish creativity
The future of Gigglebug looks bright and ambitious. The company has already established itself in the US market and has strong relationships with major entertainment players. Only few Finnish entertainment companies have achieved the same level of recognition. But achieving this position did not happen overnight; it took Gigglebug around 6-7 years to break into the US market and gain the trust of its customers. Now the US is one of the main growth areas where Gigglebug will continue to concentrate its efforts in the future as well.
Gigglebug’s future plans are centered around two big goals and dreams. The first one is to create original brands and characters that will stand the test of time and achieve the same kind of global popularity as iconic children’s series like Hello Kitty and Paw Patrol. The second big dream is to build a studio that leaves a lasting legacy, like Pixar and Studio Ghibli. Gigglebug wants to be known as a studio that produces positive and joyful content that brings joy to children and families all over the world. To achieve its goals, Gigglebug will invest even more in brand building and marketing when launching new programmes.
Gigglebug’s growth story serves as an example of how Finnish creative talent can achieve international success. The company’s development from a small team to a large organisation that attracts talent from all over the world is an achievement to be proud of. Gigglebug’s employees represent up to 20 different nationalities, enriching the Finnish entertainment scene and bringing new professionals to the country. A multicultural work community strengthens Finland’s position as an internationally significant creative industry player.
The company’s story also sends an important message: spreading joy and laughter can bring success both domestically and internationally. In addition, Gigglebug has proven that supporting creativity can have a significant economic impact, attracting international funding and bringing in foreign talent. Creativity, joy and artistic talent can therefore be the basis for sustainable and internationally significant growth.
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The article is part of the Finnish Venture Capital Association’s and PwC’s Building Growth Competition 2024 blog series, where we present the stories of the competition finalists. You can find more information about the competition on our website! The competition’s winner will be awarded at the Finnish Venture Capital Association’s main event of the year: the Finnish PE-VC Summit on 3.10.
