Vendep Capital launches a €40 million venture fund for SaaS companies

Investments in funds - 2017-5-3

The fund with the target size of €40 million will invest mainly in Finnish startups 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 €30 million from more than 20 investors. The fund with the target size of €40 million will invest mainly in Finnish startups offering software to B2B customers. The investors are Finnish institutional investors, foundations, family offices and private investors.

Among the investors in Vendep Capital Fund II are for example Tesi (Finnish Industry Investment Ltd), KRR II, Elo Mutual Pension Insurance Company, The Finnish Innovation Fund Sitra, AI-Partners, and Gerako. The role of Tesi and KRR II as lead investors and their continuing support were vital for the success of the fundraising process. 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). A number of the private investors invest in and work with startups, which helps to increase Vendep Capital’s visibility to many sectors and improves deal flow. Vendep Capital’s General Partners have made a commitment of €1 million in the fund.

A typical initial investment will be in the range of €0.5-1 million. The fund’s strategy is to invest in startups 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 €30,000-50,000, 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.

”The Finnish venture capital market has a pre-series A funding gap. Startups have a hard time raising €0.5-2.5 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 startups. 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”, says Vendep Capital’s General Partner Sakari Pihlava.

”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 our existing and future portfolio companies.

 

Additional information

Sakari Pihlava, General Partner, Vendep Capital, +358 40 771 3941, sakari.pihlava@vendep.com

Jupe Arala, General Partner, Vendep Capital, +358 40 564 9730, jupe.arala@vendep.com

Hannu Kytölä, General Partner, Vendep Capital, +358 50 544 7162 , hannu.kytola@vendep.com

Riitta Jääskeläinen, Investment Director, Tesi,  +358 50 309 2733, riitta.jaaskelainen@tesi.fi    

 

Vendep Capital Fund II invests mainly in Finnish startups offering software to B2B customers. Founded in April 2017, the target size of the fund is €40 million. The funds have been raised from Finnish private and institutional investors such as Tesi (Finnish Industry Investment Ltd) and The Finnish Innovation Fund Sitra. The fund may make investments alone or as part of a syndicate. www.vendep.com

Tesi (Finnish Industry Investment Ltd) is a venture capital and private equity company that accelerates companies’ success stories by investing in them directly and via funds. Tesi always invests together with other investors, providing them with access to high quality deal flow in Finland. Our investments under management total 1 billion euros and we have altogether 723 companies in portfolio. http://www.tesi.fi | @TesiFII