Venture Capital and Private Equity Industry in Finland

Transcription

1 Venture Capital and Private Equity Industry in Finland

2 2 Highlights 215 Finnish companies received over 1 billion Euros of VC/PE investments Out of the 1, billion Euros invested in Finnish companies buyout-stage companies received 923 M (593 M ) and venture capital stage companies 122 M (124 M ). Venture capital investments in Finnish companies, in relation to the GDP, is the highest in Europe The investments in Finnish startups and early stage growth companies was the highest in Europe and over twice the European average. Measured by average, venture capital investments in Finnish companies topped the list also in the longer term, right after Sweden. The role of private sector investors growing stronger in early stage investments Finnish private sector venture capital investments have increased from 39 M in 211 to 88 M in 215. Direct investments from public sector venture capital investors have decreased from 38 M to 25 M during the same time period. Summary Finnish VC/PE firms year-end capital under management was 6, billion Euros (5,7 B ). Finnish VC/PE firms invested 527 million Euros (57 M ) in 252 companies (293). In total 24 Finnish companies (281) received investment from local or international VC/PE firm. 92 (17) of these companies got firsttime an investment from VC/PE firm. Finnish and international VC/PE firms exited 99 (75) Finnish companies. Note: Previous year s corresponding figures are in parenthesis.

3 3 Summary Venture & Buyout 215 Foreign institutional investors Finnish institutional investors Unspecified Fundraising Investments 275 M 8 M 71 M Finnish PE firms (FuM 6, billion euros) Foreign PE firms 77 M 45 M 594 M Foreign portfolio companies Finnish portfolio companies

4 4 Summary Venture 215 Institutional investors Investments Finnish PE firms Foreign PE firms 13 M 11 M 21 M Foreign portfolio companies Finnish portfolio companies Note: The statistics include only investments from PE firms. More information on page 45.

5 5 Summary Buyout 215 Institutional investors Investments Finnish PE firms Foreign PE firms 64 M 35 M 573 M Foreign portfolio companies Finnish portfolio companies

6 6 Fundraising Funds raised by Finnish PE firms

7 7 Annual new funds raised by Finnish PE firms by fund stage focus in M Venture Growth Buyout Mezzanine Generalist Total

8 8 Geographical distribution of annual new funds raised by Finnish PE firms in % 9% M 8% 7% 6% 5% 4% 3% 2% 1% % Finland Other Europe Outside Europe Outside Finland, total

9 9 New funds raised by Finnish PE firms divided by investor (LP) type in % M 9% 8% 7% 6% 5% 4% 3% 2% GP commitments Other asset managers Academic Institution Endowments and foundations Private Individual Family office Capital Market Corporate Investor Unspecified Banks Fund of Funds Other Insurance Companies 1% % Total Government agencies Pension funds

10 1 Year-end capital under management of Finnish PE firms in M Capital under management

11 11 Capital available for investing of Finnish PE firms on December 31, M Capital available for investing Venture Capital targeted to initial investments Buyout

12 12 Industry Statistics The domestic and foreign activity of the Finnish offices of PE firms

13 13 Private equity activity of Finnish PE firms in M Fundraising Investments Divestments (at cost)

14 14 Annual stage distribution of venture investments made by Finnish PE firms in M Nbr investments Seed Start-up Later stage venture Venture total (nbr)

15 15 Annual stage distribution of buyout investments made by Finnish PE firms in M / Nbr investments 4 Buyout 35 Replacement capital Rescue/Turnaround Rescue/Turnaround & Replacement capital Growth Buyout total (nbr)

16 16 Annual stage distribution of number of portfolio companies invested in by Finnish PE firms in Nbr companies Total Seed Start-up Later stage venture Growth Rescue/Turnaround Replacement Capital Buyout Note: If the same (one) company receives for example one start-up investment and one growth investment during the same reporting year, it is reported in both stages.

17 17 Average size of investments made by Finnish PE firms in Venture,8,7,6,5,4,3,2,1, M per investment M Nbr investments M per portfolio company Average size of investment Nbr investments 7, 14 M Nbr investments 6, 12 5, 1 4, Buyout 6,3 M 3, 2, 4 1, 2, Average size of investment Nbr investments

18 18 Quarterly investments made by Finnish PE firms in Quarter Venture Buyout M Nbr Nbr M investments investments Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/

19 19 Industry distribution of investments made by Finnish PE firms in 215 Business and industrial products Agriculture Business and industrial services Consumer goods and retail Computer and consumer electronics Life sciences Communications Consumer services: other Construction Energy and environment Other Chemicals and materials M Nbr companies

20 2 Initial and follow-on investments made by Finnish PE firms in Venture M / Nbr companies Initial Follow-on Initial (nbr) Follow-on (nbr) Buyout 6 5 M Nbr companies Initial Follow-on Initial (nbr) Follow-on (nbr) Note: Initial investment = Initial private equity investment for the target company

21 21 Private PE firms share of all Finnish PE investments in % 9% M 8% 7% 6% 5% 4% 3% 2% 1% % Total Venture Buyout

22 22 Syndication of investments made by Finnish PE firms in % 9% Nbr investments 8% 7% 6% 5% 4% 3% 2% 1% % Syndication % in venture Syndication % in buyout

23 23 Regional distribution of investments made by Finnish PE firms in 215 Province of Lapland M Nbr investments Venture,2 4 Buyout Province of Oulu M Nbr investments Venture 11,6 49 Buyout 16,3 7 Province of Western Finland M Nbr investments Venture 6,4 31 Buyout 47,3 14 Province of Eastern Finland M Nbr investments Venture 4,5 24 Buyout 5,3 8 Province of Åland M Nbr investments Venture Buyout Province of Southern Finland M Nbr investments Venture 75,9 16 Buyout 277,3 36 investments Abroad M Nbr investments Venture 12,7 26 Buyout 64,2 9

24 24 Geographical distribution of investments made by Finnish PE firms in (M ) Venture Buyout 8 M H1/27 H1/28 H1/29 H1/21 H1/211 H1/212 H1/213 H1/214 H1/ M Investments in Finland Investments abroad H1/27 H1/28 H1/29 H1/21 H1/211 H1/212 H1/213 H1/214 H1/215 Investments in Finland Investments abroad

25 25 Geographical distribution of investments made by Finnish PE firms in (nbr) Venture Nbr investments Buyout H1/27 H1/28 H1/29 H1/21 H1/211 H1/212 H1/213 H1/214 H1/215 Investments in Finland Investments abroad 7 Nbr investments H1/27 H1/28 H1/29 H1/21 H1/211 H1/212 H1/213 H1/214 H1/215 Investments in Finland Investments abroad

26 26 Annual divestments made by Finnish PE firms in M, at cost / Nbr divestments Write-offs Divestments excl. write-offs Write-offs (nbr) Divestments excl. write-offs (nbr)

27 27 Method distribution of divestments made by Finnish PE firms in % M * 9% 8% 7% 6% Unspecified Divestment by Other Means Divestment by Write-Off Sale to Financial Institution 5% Sale to Management (Buy-back) 4% 3% 2% Repayment of Preference Shares/Loans IPO or sale of quoted equity Sale to Another Private Equity House Divestment by Trade Sale 1% % Total *M, at cost

28 28 Market Statistics The activity towards Finnish portfolio companies from Finland and abroad

29 29 Annual investments made in Finnish portfolio companies in M / Nbr investments Venture Buyout Total (nbr)

30 3 Annual venture investments made in Finnish portfolio companies in M Nbr investments Seed Start-up Later stage venture Venture total (nbr) 1 5

31 31 Annual buyout investments made in Finnish portfolio companies in M Nbr investments Growth Rescue/Turnaround Replacement capital Buyout Buyout total (nbr)

32 32 Annual number of Finnish portfolio companies invested in in Nbr companies Buyout Replacement capital Rescue/Turnaround Growth Later stage venture Start-up Seed Note: If the same (one) company receives for example one start-up investment and one growth investment during the same reporting year, it is reported in both stages.

33 33 Early stage investments and Tekes funding* for Finnish young growth companies in M R&D loans R&D grants NIY Tekes Nasdaq First North Other (FVCA's estimate) Business angels Other venture capital Seed , TEKES, Finnvera, FiBAN *Tekes funding for less than 6-year old companies and NIY funding

34 34 Quarterly investments made in Finnish portfolio companies in Quarter Venture Buyout M Nbr Nbr M investments investments Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/

35 35 Industry distribution of investments made in Finnish portfolio companies in 215 Business and industrial products Business and industrial services Consumer goods and retail Life sciences Computer and consumer electronics Other Communications Consumer services: other Construction Energy and environment M % Nbr Companies % Total investment 988 1, 234 1, Subtotal high-tech 9 9, ,9 Subtotal cleantech 72 7,3 21 9, Chemicals and materials M Nbr companies

36 36 Industry distribution of venture investments made in Finnish portfolio companies in 215 Communications Computer and consumer electronics Life sciences Business and industrial products Consumer services: other Energy and environment Other Chemicals and materials Consumer goods and retail Business and industrial services M Nbr companies

37 37 Initial and follow-on investments made in Finnish portfolio companies in Venture M / Nbr companies Initial Follow-on Initial (nbr) Follow-on (nbr) Buyout 9 M Nbr companies Initial Follow-on Initial (nbr) Follow-on (nbr) Note: Initial investment = Initial private equity investment for the target company

38 38 Regional distribution of investments made in Finnish portfolio companies in 215 Province of Lapland M Nbr investments Venture,2 4 Buyout Province of Oulu M Nbr investments Venture 13,7 52 Buyout 5,3 7 Province of Western Finland M Nbr investments Venture 7,1 33 Buyout 5,3 15 Province of Eastern Finland M Nbr investments Venture 5, 25 Buyout 5,3 8 Province of Åland M Nbr investments Venture Buyout Province of Southern Finland M Nbr investments Venture 92,9 177 Buyout 812,8 48

39 39 Investment amounts made in Finnish portfolio companies by origin of investor in Venture Buyout 6 5 M H1/27 H1/28 H1/29 H1/21 H1/211 H1/212 H1/213 H1/214 H1/215 M Finnish Investor Foreign Investor H1/27 H1/28 H1/29 H1/21 H1/211 H1/212 H1/213 H1/214 H1/215 Finnish Investor Foreign Investor

40 4 Number of investments made in Finnish portfolio companies by origin of investor in Venture Nbr investments Buyout H1/27 H1/28 H1/29 H1/21 H1/211 H1/212 H1/213 H1/214 H1/215 Finnish Investor Foreign Investor Nbr investments H1/27 H1/28 H1/29 H1/21 H1/211 H1/212 H1/213 H1/214 H1/215 Finnish Investor Foreign Investor

41 41 Annual divestments made from Finnish portfolio companies in M, at cost Nbr divestments Write-offs Divestments excl. write-offs Write-offs (nbr) Divestments excl. write-offs (nbr)

42 42 Method distribution of divestments made from Finnish portfolio companies in % M * 9% 8% 7% 6% 5% 4% 3% 2% Unspecified Divestment by Other Means Divestment by Write-Off Sale to Financial Institution Sale to Management (Buy-back) Repayment of Preference Shares/Loans IPO or sale of quoted equity Sale to Another Private Equity House Divestment by Trade Sale 1% % Total *M, at cost

43 43 VC/PE investments as percentage of country s GDP in ,4% Investments as % of GDP 1,2% 1,%,8%,6%,4%,2%,% 215 Average , EVCA, IMF, World Economic Outlook Database (GDP)

44 44 Venture investments as percentage of country s GDP in ,7% Investments as % of GDP,6%,5%,4%,3%,2%,1%,% 215 Average , EVCA, IMF, World Economic Outlook Database (GDP)

45 45 Buyout investments as percentage of country s GDP in ,4% Investments as % of GDP 1,2% 1,%,8%,6%,4%,2%,% 215 Average , EVCA, IMF, World Economic Outlook Database (GDP)

46 46 Methodology

47 47 Methodology of the survey The statistics describing the Finnish private equity industry are based on information received from PEREP_Analytics private equity database A fully functional, centralised non-commercial pan-european private equity database With its own staff, internal resources and webportal Information is collected via an online survey and complemented with public sources of information Figures are updated continuously and are therefore subject to change Note: The statistics include only PE firms (including evergreens and captives) investments. Syndicate and direct investments made by several other investors, e.g. LP co-investors, individuals, entrepreneurs, business angels, management, corporates, funds-of-funds, other asset managers and/or financial institutions, are not included in FVCA s statistics. However, they may form a notable part of the venture market. Additionally, growth investments classification to buyout investments affects the venture statistics. The following national private equity associations are participating in PEREP_Analytics: APCRI (Portugal) CVCA (The Czech Republic) EVCA (Europe) NVCA (Norway) SEEPEA (Southeast Europe) AVCO (Austria) CVCA (Croatia) FVCA (Finland) NVP (The Netherlands) SLOVCA (Slovakia) BVA (Belgium) DVCA (Denmark) HVCA (Hungary) PPEA (Poland) SVCA (Sweden) BVK (Germany) EstVCA (Estonia) IVCA (Ireland) SECA (Switzerland)

48 48 Methodology of the survey Statistics are aggregated via two methods industry statistics and market statistics Industry statistics By country of private equity firm s office Here: Domestic and foreign investments/divestments made by the Finnish offices of private equity firms Market statistics By the location of the portfolio company Here: Investments/divestments in/from Finnish portfolio companies made by domestic and foreign private equity firms Note: The aggregated figures may not always sum up to totals due to rounding. Some graphs exclude variables labelled as unspecified. Please ask FVCA s analyst for more information about the methodology

49 49 Stage definitions VENTURE Investments in companies in their early development stage Seed Start-up Later stage venture Seed Start-up, Other early stage Later stage venture, Bridge financing BUYOUT A transaction financed by a mix of debt and equity, in which a business, a business unit or a company is acquired Growth Rescue/Turnaroun d Replacement capital Buyout Growth Rescue/Turnaround Secondary purchase/replacement capital, Refinancing bank debt Management buyout (MBO), Management buy-in (MBI), Public to private, Other PIPE, Other leveraged buyout