Ei dian otsikkoa

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CleanTech Investments in Finland Dr. Mika
Räsänen Finnish Industry Investments Ltd 5/6/2006
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Contents FII position Venture Capital
Investments in Finland ClenTech
investments Development Issues
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Finnish Industry Investments Ltd

- State owned
investment company -
Since 1995 -
Investments into Venture capital funds
and directly into target
companies
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• Investments 330 MEUR
• A limited partner in 69 venture capital funds,
  which have invested into above 500 companies.
• 12 direct investments.
• Investments into 67 early stage companies
  through an own fund.

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Own early stage fund 15 50 Meur Venture
Capital -funds 37 119 Meur Regional funds
17 54 Meur
Private Equity -funds 21 66 Meur Direct
investments 10 33 Meur
Tilanne 31.12.2005
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Driving forces in Energy and Environmental
Investments
FII made a growth potential analysis of Finnish
industry clusters in 2001 (five years ago). Some
of the key findings were

• The demand of energy is growing, while there are
  all less and less possibilities to meet this
  growth this will create possibilities to Finnish
  companies producing innovative energy solutions.
• Energy and environmental crisis will wake up the
  governments
• Speed up new innovative energy and environmental
  investments
• Kioto agreement will come into force
• New EU regulation concerning air quality and
  waste handling will come into force
• New energy environment solutions will be needed
  in developing markets
• In addition to large centralized waste handling
  and energy productions units, there will be a
  growing need of flexible and distributed
  solutions.

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Venture capital and Private Equity in Finland

• Young industry just living first cycle
• The year 2000 bubble did not have large effects
  in Finland. When the VC industry went down in US,
  Finnish industry was just start to speed up.

Investments in Finland 1997-2005)
Capital under management in Finland 1994-2005)
)Source FVCA, 2006
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Finnish Venture Capitalists invest into early
stage start-ups
Investments in Europe 1)
Investments in Finland 2)
Milj. euro
Milj. euro
Year
Year
Early stage seed, start-up and early growth
companies Growth, MBO/MBI and other
1)Source EVCA, 2006 2) SOurce FVCA 2005
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CleanTech Investments in Finland 1998-2005

• Preliminary analysis based on broad view
  concerning Cleantech (Viitamo, Hernesniemi 2006).
• Only Finnish VC/PE investments into Finnish
  Companies are analysed.
• Analysis based on FII database (data from 69
  venture capital and PE funds data from
  co-investors investment).
• 41 investments into 26 CleanTech companies during
  1998-2005.
• Average investments into 2 3 new companies per
  year.
• Total investments 85,3 milj. euros.
• Average investments size 3,3 milj. euro.
• Median investment about 0,5 milj. euro.
• 7 exists. Still investments in 19 companies.

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Cleantech investments 1998-2005
Milj. euro, number of investments
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Cleantech investments by stage 1998-2005
Milj. euro

• Since the number of investment is small few large
  investments (e.q. Ecocat) dominate the picture.

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Investments have been made based on technology
Examples of typical investments

• Capman 3/4/2005 Moventas Oy
• There is a large potential in Windmill sector
  ja Metso Drives has great technology.
• VNT Management/FII Rotatek Oy
• Low speed generators for windmills
• Head Invest/Proventia Group/FII Winwind Oy
• Turn key windmills
• Innofinance/Midinvest/FII Greenvironment Oy
• Distributed gas turbines for biofuels
• Eqvitec Partners Ecocat International Oy
• Catalyst technology
• Innofinance Puhdas Energia Oy
• Wood energy solutions
• Innofinance/FII Primet Oy
• Advanced waste
• Wedeco/FII DGT Oy
• Direct granulation of waste sludge
• 3i Sermet Oy
• Wood energy solutions
• Veraventure Mediburner Oy

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Common features in Finnish Cleantech Investments

• Companies produce mainly technologically advanced
  components.
• Companies has main markets abroad.
• Strong technology/patent portfolio.
• The demand is already started and ramping up
  (e.q. windmills).
• Also financing for pilot projects.
• Lack of new innovative companies/entrepreneurs.

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Development issues in Finland

• There is a lack of financing of innovative pilot
  plants
• The state aid (excluding RD financing from
  Tekes) is distributed into too many small
  projects
• The state aid is not focused on technologically
  advanced solutions which have export potential.
  Local small low tech. projects, do not have that
  potentia.
• Still the demonstrations/pilots must be
  implemented in Finland
• Risk management/cost issues
• More co-operation/co-investments between the
  Finnish venture capitals required in this field
• The Finnish venture backed companies are facing
  management and international issues at the same
  time Does one team has answers to all questions?

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FIIs investments into environment/energy