Elo is one of the most active VC fund investors in Finland – this is a field that drives growth and aims to solve major global challenges

Discussions around the economy and investing are dominated by a fairly pessimistic tone at present. At the same time, there are sectors where a lot of exciting new things are happening. Venture capital is one such field of activity. From the perspective of an institutional investor such as Elo, the Finnish early-stage investment universe is perhaps wider than it has ever been before.

Over the past few years, a number of specialised funds have emerged in Finland that seek to solve broad societal issues. Examples of the challenges that these funds aim to solve include global food production issues, improving the raw material efficiency of industry and reducing CO2 emissions. They also focus on themes such as the electrification of mobility, the energy transition, the use of technology in education and training, and data and artificial intelligence. The founders behind the funds typically include successful serial entrepreneurs with a strong track record in both business management and investing.  

There are also new players in the field who have not typically participated in funding high-growth companies. New participants are positive for the industry as a whole, as they can help expand the companies’ funding channels and ownership base while introducing a more long-term perspective. 

In terms of the total euro amounts, investments in Finnish start-ups have decreased from the peak years according to a recent study by the Finnish Venture Capital Association. In spite of the slight decline, the field of early-stage investment remains very active. The total amount of funding received by Finnish start-ups in the first half of this year was higher than in any year between 2013 and 2019. Last year alone, there were several start-ups in Finland that carried out funding rounds of hundreds of millions of euros to support their future growth. 

Through funds, Elo has supported hundreds of start-ups

Over the past year, Elo has invested over EUR 30 million in Venture Capital funds in Finland. We are currently participating in over 30 Finnish VC funds and, measured in terms of our investment commitments, we have invested over EUR 130 million in these funds since 2016. Through these funds, Elo has indirectly supported hundreds of start-ups. We are one of the most active VC fund investors in Finland, and we will continue to move forward on this path.   

At Elo, we recognise the importance that high-growth companies have for Finland. At its best, collaboration between VC investors and start-ups leads to new business models, technological breakthroughs, jobs and economic growth. There have been many headline-making success stories in the Finnish start-up space. Finland needs more of these stories, and at Elo we are committed to doing our part to make them happen.  

Elo’s Venture Capital investments in Finland: 

• Elo has invested a total of approximately EUR 130 million in over 30 VC funds since 2016 
• The funds have gone on to invest hundreds of millions of euros in approximately 500 Finnish and foreign companies 
• The companies mainly operate in the technology sector