Annual Report 2014

Building new growth

Martin Backman                

In terms of volume, Finnish Industry Investment was very active in 2014. Positive developments included the acquisition of Turku shipyard together with Meyer, a family-owned German company, and the record volume of venture capital that Finnish Industry Investment channelled through its investment network into Finnish businesses. In June 2014, the €100m Industrial Renewal investment programme was successfully launched. The result for the year was nevertheless unsatisfactory. The company’s development was adversely affected by the financially challenging situation faced by Finland, coupled with the general impact of the Russian crisis on the business community towards the end of the year.

CEO's review

New investments €83 million

 

 
Finnish Industry Investment made new investments in 2014 amounting to around €83m. New investment commitments, totalling €42m, were made to seven venture capital and private equity funds and new direct investments, totalling €40m, were paid out during the year. Income from private equity and venture capital investments was booked as €21.6m. However, the reductions in the valuations of investments, as well as the exit losses and sales losses resulting from exits entered in the accounts, pushed the result for the financial year into a loss of €43.2m. The largest individual loss, €14.8m, was Finnprotein Oy’s bankruptcy.


Key figures

Industry Investment 2014

KEY EVENTS

Q1 / 2014
08.01.2014
Inventure launches a new EUR 50 million venture fund
The EUR 50 million first closing of the fund was led by European Investment Fund (EIF), FoF Growth, and FII among several institutions and private investors.
05.03.2014
Inventure and FII invest € 2.2 million in Mekitec
Mekitec, founded in 2006, improves food safety by providing innovative X-ray equipment for identifying unwanted objects in food packages. With Mekitec’s X-ray scanning, food packages containing foreign objects such as metal, glass, sand, bone chips or pieces of plastic can be identified and packages removed from reaching consumers.
07.02.2014
FII launches FoF Growth II
Similarly to its predecessor, FoF Growth I, the fund focuses on Finnish venture capital and small buyout funds. The fund’s total capital at first closing is €130 million, with commitments from Finnish pension funds Ilmarinen, Keva, Elo and the State Pension Fund amounting to €70 million.
Q2 / 2014
02.04.2014
FII commits €3 million to DN Capital’s Global Venture Capital III LP
DN Capital is a British venture capital company managing three funds with a total of €170 million in assets under management. The total capital of Global Venture Capital III is currently close to €80 million.
27.05.2014
Martin Backman appointed new CEO of FII
The Board of Directors of Finnish Industry Investment has appointed Martin Backman (44) as the new President & CEO of the company.
11.06.2014
Eniram Selected By Cleantech Group as One Of The European Cleantech Companies Of The Decade
Eniram, the fast-growing Finnish provider of energy management technology and data analytic services to the shipping industry, today announced that it had been named by Cleantech Group (CTG), developer of the i3 market intelligence platform, as one of CTG’s five picks as a European Cleantech Company of the Decade.
27.06.2014
Additional financing for Keliber
Keliber Oy has successfully concluded an equity issue with gross proceeds of approximately € 2.2 million for the development of its lithium project in Central Ostrobothnia, Finland. The new financing allows the continuation of company’s successful drilling program.
15.04.2014
$9.4 million to Balderton Capital V fund
FII has made a $9.4 million commitment to Balderton Capital V fund. The fund’s total capital is $305 million at final closing. Balderton manages $2.2 billion in assets in five funds. Balderton invests in European early stage start-ups across the consumer internet, software and ecommerce sectors. Through international fund investments, FII aims at attracting international investors to Finnish technology companies.
28.05.2014
Armada Mezzanine Capital holds first close of € 70 million for Armada Mezzanine Fund IV
Armada Mezzanine Fund IV has held its first close of € 70 million reaching 70 % of its targeted fund size of € 100 million.
16.06.2014
Verdane Capital closes largest fund to date at Skr 2bn
Verdane Capital VIII K/S is Verdane’s largest to date and secures new capital for Nordic growth companies. Four Finnish investors have invested in the fund.
Q3 / 2014
04.08.2014
Meyer Werft and the State of Finland acquire Turku shipyard
The State of Finland and the German shipbuilder Meyer Werft have signed an agreement with the ship-yard’s owner STX Europe AS regarding the purchase of the whole share capital of STX Finland Oy.
01.09.2014
Sakari Tamminen appointed FII’s Board Chairman
Sakari Tamminen, M.Sc. (Econ), has been elected as the new Chairman of the company’s Board of Directors with effect from 1 September 2014.
30.09.2014
Via Venture Partners invests in Profit Software
Via Venture Partners, a leading Nordic multi-stage private equity firm, invests in Profit Software together with FII and the management of Profit Software, Via Venture Partners acquires 100% of the company’s shares.
28.08.2014
Enevo closes $8 million in funding for sensors and analytics that optimize waste management for smart cities
The round includes Earlybird, Lifeline Ventures, FII, Draper Associates and Risto Siilasmaa, among others.
04.09.2014
FII’s share capital raised by € 50 million
The Finnish Government authorised the Ministry of Employment and the Economy on 4 September 2014 to subscribe for FII’s shares and to increase the share capital of the company by € 50 million. The share issue is intended for promoting the renewal, diversification and growth of industrial companies as well as for venture capital investments boosting growth in the bioeconomy, cleantech and healthcare sectors.
Q4 / 2014
01.10.2014
VersoVentures accelerates spin-offs with a new EUR 50 million fund
VersoVentures has established a new private equity fund that focuses on investing in businesses or technologies spun off from larger corporations. The fund creates new independent growth companies across several industrial segments by investing in businesses with revenue in the range of € 1-30 million.
12.11.2014
Team Finland becomes a Slush partner
Team Finland and Slush, one of the world’s leading startup and technology events, are building even closer ties. The goal is to boost investment in Finnish businesses and make Finland the most attractive location in the world for growth companies.
05.12.2014
MetGen Oy Wins Global Cleantech Cluster Association 2014 Later Stage Award
For cleantech success in BioFuel / BioEnergy category MetGen Oy honored at Cleantech Investing Seminar in Lausanne, Switzerland.
03.11.2014
Stella now market leader in services provided at home
Stella’s operating area will expand to cover the whole of Finland. Stella offers its customers response alarm services, medical care and other homecare services, physiotherapy sessions, household services and childcare – all provided in the customer’s home.
24.11.2014
Health technology professional NewIcon receives MEUR 2.3 investment
Provider of medical automation solutions NewIcon Oy has raised altogether MEUR 2.3 in a financing round that brings in FII and Etera Mutual Pension Insurance Company as co-investors in the company.

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