Brakes slam on VC investment
Helsinki – According to a new survey, Finnish high-tech growth companies raised almost a51m in the first half of 2009, 17% down on the first half of 2008. Second quarter funding decreased by more than 50% from the same period in 2008.
Carried out by international valuation practitioner Technopolis, the survey reviewed capital raised by private Finnish high-tech companies from venture capital funds and from angel investors, both Finnish and foreign. It drew on both public and undisclosed information from 140 Finnish and foreign investors, and 1,500 Finnish high-tech firms, including ones from the software and ICT hardware sectors, nanotechnology and the life sciences.
The authors say the study shows the clear impact of the global slowdown in venture capital. “More than 50 companies are seeking to raise funds right now in the Finnish market. We hope that the environment will improve in the second half of the year,” said Will Carwell, CEO of Technopolis Ventures.
Out of all the funds raised in the first half of 2009 by 29 companies, around EUR16m were attracted by the life sciences sector. Overall, the funds came from both domestic (EUR24.5m) and foreign (EUR22m) venture investors. According to the study, the average investment per company was EUR1.8m. 27 investment rounds were closed by seed and early stage companies, and no exits occurred.