Current state of growth funding: more diversification could reduce dependence on traditional forms of financing

A well-functioning corporate finance market and the availability of capital investments are crucial to the development and growth of companies. Enterprise financing provided by the state complements the private market by filling market failures. Meanwhile, EU funding diversifies the range of financing available to high-risk growth companies. These are the conclusions of a report on the current state of growth funding published by the Ministry of Economic Affairs and Employment on 2 June 2025.

According to the report, private corporate financing and the capital investment market function well in Finland on average, offering diverse funding opportunities for promoting innovation and growth. Nonetheless, there are challenges in the availability of financing, especially for small, innovative and growth-oriented companies. To solve these challenges, it is necessary to further develop the growth funding market and to introduce new forms of financing for the sake of diversification.

“It is important to diversify growth funding in Finland, as it may reduce dependence on traditional forms of financing. This trend could also support the development of new forms of financing and result in better financing opportunities for companies and promote their growth. Ongoing diversification of the growth funding space would also ensure that financing is available for all stages of growth through various channels,” says Juhapekka Ristola, Director General of the Ministry of Economic Affairs and Employment. 

The first of its kind, the report provides a topical and comprehensive situation picture of the growth funding ecosystem in Finland, highlighting the importance of both private and public funding in promoting the growth and competitiveness of companies. The report contains texts describing the situation picture produced by different interest groups and operators in the sector. 

Inquiries: 
Henri Tuominen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 320