Finnish venture capital investments show 40% increase

According to the Finnish Venture Capital Association’s preliminary figures, the total amount invested by Finnish venture capital firms increased by 40% in 2000. It states that venture capital firms in Finland made 418 investments in 298 companies, worth a total of FMk 2.4bn. Finnish funds also recorded some impressive IRR figures, with pooled IRR for all stages of investment stood at 28.4%, with the strongest performances coming from MBO/MBI funds. The European figure for pooled IRR was 14.9%. However, the FVCA believes that these IRR figures are unsustainable in the long term. Riikka Korvenoja, FVCA secretary general, comments: ‘Finland has seen some strong performance. That is down to some good investments made in the mid-90s and valuable exits made in 1999 and 2000. Although there will continue to be funds with stellar performances, the exit and competitive environment has changed, so our long-term IRRs are likely to be closer to the European average.’ The amount raised by firms in 2000 dropped slightly in 2000 to FMk 3.5bn, compared with FMk 3.7bn in 1999. This brought the total venture capital under management in Finland to FMk 13.1bn at the end of 2000.

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