Inventure Fund II holds second close on €68m

The fund, Inventure's second, was announced in January 2014 and reached €50m for its first close. It has a target of €75m and a hard-cap of €80m.

Tuomas Kosonen, partner at Inventure, told unquote" that the GP expects to hold a final close before the end of 2014.

Kosonen said the main new investor in the fund was Ilmarinen, a Finnish management company of insurance and pension funds. The fund was supported by strong subscriptions from existing investors.

Inventure's vehicle targets Nordic and Baltic start-ups across all sectors, though the GP's portfolio mainly consists of tech companies. It will commit €1-3m to A-round funding and upwards of €5m in subsequent rounds. The VC will also commit seed funding in the range of €100,000-300,000.

The new fund will also act as a stepping-stone for Shanghai-headquartered Inventure to establish a US presence. Kosonen said it plans to open an office for a market access team, which will provide business development for its portfolio companies.

Having opened a Shanghai-based division four years ago, the US division will be Inventure's second foreign market access team, and hopes it will make the GP's offering more attractive, as well as help its portfolio companies expand internationally.

The Finland-based fund has a 10-year lifespan and two potential one-year extensions. Inventure can raise new funds after the fourth year or after 60% of the capital has been invested

Investors
In addition to Ilmarinen, institutional investors, pension funds and funds-of-funds have committed to the vehicle, including the European Investment Fund (EIF), FoF Growth, Finnish Industry Investment, Sandvik Pensionsfond and Sitra, as well as several private investors.

A total of 20 LPs, including 10 institutional investors, came in at first close, with family offices providing some minor investments. All investors are Finnish, apart from Luxembourg-based EIF.

Investments
Inventure Fund II invests in high-tech companies and start-ups across the Nordic and Baltic countries, though most of its investments to date have been predominantly in its native Finland.

At first close, it was announced that the fund will make five to six investments per year, including a few seed investments. It can take stakes of up to 20% but will typically secure 10-15% holdings.

Current investments made through Inventure Fund II include Boomlagoon and Mekitec.

People
Inventure's venture capital team includes managing director Sami Lampinen, and partners Timo Tirkkonen and Tuomas Kosonen. Esko Torsti is the head of non-listed investments at Ilmarinen.

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