Earlier success fuels oversubscription: Lifeline Ventures raises EUR 130 million for a new fund

Investments in funds - 15.11.2019

Venture capital firm Lifeline Ventures has raised EUR 130 million for a new fund, an amount that sets a new record for fundraising in Finland. The company invests in Finnish technology companies in all their development stages: from first-round investments in the angel or seed stage through to large-scale, follow-on investments in later-stage financing rounds. Lifeline Ventures also invests in funds; including insurance funds Ilmarinen, Varma and Elo, state-owned investment company Tesi and FoF Growth III fund, Nordea Life Assurance and Taaleri Kasvurahastot.

The Lifeline Ventures IV fund will invest in some 40 companies over the next five years. An angel or seed investment from the fund will range from EUR 200,000 to EUR 2 million in size. Lifeline is well-known for its connection with early-stage technology and software companies. The company’s most successful earlier investments include those in Supercell, Applifier and Nonstop Games, while the company’s current investments include those in Wolt, Oura, Sulapac and ICEYE. Recently, Lifeline has focused more on science-based companies operating in sectors such as optics, virtual reality and materials technology.

“In 2012, in its first year of operation, our fund proved to be exceptionally successful. In a global comparison of our peers for that year, we easily ranked in the top quartile in terms of gains,” says Lifeline’s partner Samuli Leppänen.

Last year Finnish startups raised a record EUR 480 million in total. Lifeline estimates that its portfolio companies account for some 30% of this capital.

A number of investments in Finland’s venture capital market are starting to mature and to launch financing rounds that are tens of millions of euros in size. Financing rounds of this size mostly require international investors, and almost all such rounds consist of numerous investors.

“We want to be the first investor in a startup. Our most successful investments have mainly been those in which we were an angel investor. This new, much larger, fund allows us to extend our horizon in portfolio companies’ development. The landscape has changed drastically: the level of startups has risen sharply, and the best of early-stage companies are also able to recruit the most skilled talent,” points out Timo Ahopelto, well-known co-founder of Lifeline.

“It’s great to see a fund raised in Finland of a size that enables investing in the best crop of early-stage portfolio companies through their later-stage financing rounds also. The fund is managed by an experienced player with strong international networks. That, in itself, attracts international investors to Finnish companies, especially in larger-scale financing rounds,” says Tesi’s Investment Director Riitta Jääskeläinen.

For further information:

Lifeline Ventures

Timo Ahopelto, timo@lifelineventures.com

Samuli Leppänen, samuli@lifelineventures.com

Team photo: Kai Backman, Timo Ahopelto, Samuli Leppänen, Petteri Koponen and Juha Lindfors.

Lifeline Ventures is a Finland-based, early-stage venture capital firm that invests widely in sectors ranging from biotech to mobile gaming. Lifeline Ventures founded is first fund in 2012. The company’s head office is located in Helsinki, Finland.  So far, Lifeline Ventures has invested in over 70 companies in Finland, including Aiven, Oura, Varjo, Sulapac, Dispelix, Smartly.io, Swappie, Altum Technologies, Solar Foods, Iceye and Wolt. www.lifelineventures.com