Business Finland Venture Capital Ltd is an investor in early stage capital investment funds
The purpose of public venture capital investments is to promote the development of venture capital investment markets and to focus funding on areas where there is not enough private risk capital (market shortfall).
The aim of Business Finland Venture Capital Ltd is to strengthen and diversify the provision of funding for early-stage companies in Finland. The company functions as a fund investor and does not make direct investments into any target companies.
Early stage corporate activities are often carrying a considerable risk while the companies’ products and/or business models are still in the developing stage. Business Finland Venture Capital Ltd can use economic incentives (such as asymmetry in the distribution of profits to favour private investors) in order to funnel private capital to early stage funds.
The company’s activities are governed by the Act on the State-owned early-stage venture capital fund investment company. The Ministry of Economic Affairs and Employment governs the activities of Business Finland, the Finnish Funding Agency for Innovation and also sets the goals for capital investment activities. Business Finland is responsible for corporate governance.