Vendep Capital has launched a EUR40 million venture find which will invest mainly in Finnish start-ups offering software to B2B customers.
The investors are Finnish institutional investors, foundations, family offices and private investors.
By the first closing at the end of April, Vendep Capital Fund II has received capital commitments worth over EUR30 million from more than 20 investors.
Among the investors in Vendep Capital Fund II are Tesi (Finnish Industry Investment Ltd), KRR II, Elo Mutual Pension Insurance Company, The Finnish Innovation Fund Sitra, AI-Partners, and Gerako.
Other investors include foundations, such as the Gösta Serlachius Fine Arts Foundation and the Saastamoinen Foundation, and several private investors from Vendep’s first fund (Vendep Startup Fund I).
Vendep Capital’s general partners have made a commitment of EUR1 million in the fund.
A typical initial investment will be in the range of EUR500,000 to EUR1 million. The fund’s strategy is to invest in start-ups offering software to B2B customers, usually on SaaS basis. The potential target companies are expected to have a significant number of customers, and their recurring monthly revenue should be at least EUR30,000 to EUR50,000, with a considerable proportion coming from international markets.
Vendep Capital’s general partners Jupe Arala, Hannu Kytölä, and Sakari Pihlava will all have an active role in the development of the portfolio companies. The goal is to accelerate growth and enable the companies to recruit the best professionals and attract the interest of international investors. In order to ensure international growth and the building of a successful international sales organisation and contacts with international investors, Vendep Capital will employ its partner network based in London, Amsterdam, Berlin, and San Francisco.
Vendep Capital’s general partner Sakari Pihlava says: “The Finnish venture capital market has a pre-series A funding gap. Start-ups have a hard time raising EUR500,000 to EUR2.5 million of financing that would help them reach the required size and validation for a series A investment round. Our new fund has been established precisely to fill this gap. We are very happy to see that so many investors in our first fund have made commitments in the new fund as well. Our first fund’s portfolio includes several promising start-ups. Like AlphaSense, provider of a search engine for knowledge professionals, has exceeded our growth expectations and is the leading player in its field in the US. Right after this launch we are looking to strengthen our team by recruiting a new investment professional in our Helsinki office.”
”It is great to have a new venture capital fund in the Finnish market. Vendep Capital has a good track record as a startup accelerator in Finland and knows the market well. We are looking forward to new success stories,” says Riitta Jääskeläinen from Tesi.
After the summer, Vendep Capital will organise the third B2B Camp day for current and potential future portfolio companies. The theme of the event is how to build a SaaS sales team in London and San Francisco. The purpose of the B2B Camp events is to share valuable practical experience with existing and future portfolio companies.