Nordic Cleantech growth companies going strong
€100 million in investments for Cleantech Venture Day companies
According to a recently published report by the Finnish Business Angels Network (FiBAN) and the Finnish Venture Capital Association (FVCA), Finnish early-stage companies received a total of €383 million in new venture capital last year, which denotes a growth of more than 42% compared to 2015. This trend is clear in several industries and one of them is cleantech.
Cleantech Venture Day is an annual investor event held in Lahti, Finland, at which cleantech companies meet with international investors. Nordic Innovation Accelerator, organizer of the event, monitors the financing situation of enterprises taking part in the event, and the data approves that the amount of private investments is clearly on the rise.
“Digitalisation and the global energy revolution have created an explosive demand for new cleantech solutions. It has attracted fresh new companies and solutions to the industry, which have also boosted the development and growth of more conventional, investment-oriented companies. Cleantech Venture Day has been an industry trailblazer in Finland and the most significant contact point between growth companies and international investors,” comments Jyri Arponen, manager of the CleanWeb programme of the Finnish Funding Agency for Innovation (Tekes).
Venture capital funding is important to growth companies especially in the cleantech industry, where the development of technologies requires years of R&D work and plenty of resources before a commercial breakthrough. Of all companies that have taken part in Cleantech Venture Day, companies such as Enersize, Alelion, Altum Technologies, Aurealia Turbines, Canatu, Chempolis, Chromafora, Ekorent, Exibea, Nocart, Norsepower, Process Genius, Savo-Solar, Skeleton Technologies, Tamturbo, Swap and Visedo received private financing last year.
In total, these companies collected approximately €100 million last year to support their operations, €82 million of which was targeted towards Finnish cleantech growth companies. An increasing number of cleantech companies wish to gain exposure at the event in order to present their solutions to an international group of investors. Only the best are selected to be featured on the stage, and the high calibre of the participating companies has resulted in international investors selecting Cleantech Venture Day as their main event in Europe.
Private equity investments have a significant accelerating effect on the Finnish economy. Without private venture capital, it is almost impossible for new growth companies to see the light of day. One current example is the Finnish company Enersize, which has issued approximately €1.2 million in shares while preparing to become listed on the stock market in the second quarter of this year. The investors include parties such as the German industrial investment company Heinz Dürr Invest GmbH and the Finnish Cleantech Invest, which owns 36.6% of the company’s issued shares.
Cleantech Invest is a regular participant at the Cleantech Venture Day event, and the company has made direct investments in enterprises participating in the event, such as swap.com, Enersize and Aurelia Turbines. One of the most successful enterprises is Nocart, which closed a €200 million deal on a solar power plant in Zambia at the beginning of the year. Cleantech Invest invested €1 million in the company in 2016.
“I’ve met dozens of interesting enterprises at the Cleantech Venture Day over the years, and many of them are currently in our portfolio. The event has established itself as a significant industry meeting point that brings out the most interesting growth companies from all Nordic countries. We focus on ensuring that our portfolio companies have sufficient opportunities for growth, and the pick-up in the industry can also be seen in the impressive growth of more than 200% in the turnover of our portfolio companies in recent years,” says Partner Tarja Teppo from Cleantech Invest.
Nordic cleantech growth companies have been very successful, so the Cleantech Venture Day event is expected to generate even more interest among international investors alike in the future.
A new page will be turned in 2017 as the capital investment event Cleantech Venture Day, organised in Lahti until now, will spread over to London in Great Britain, where the event will be held once a year. The host of Cleantech Venture Day in London will be Cambridge Cleantech cluster in co-operation with the Finnish Nordic Innovation Accelerator. This will enable the Cleantech Venture Day to strengthen its profile and ensure that the participating companies gain even more visibility.
- Key Insight
- Cleantech Venture Day - The best meeting place for Cleantech Companies and Investors
- Organisez since 2006 in Lahti, Finland
- Expanded to London in 2017