North Savo Startup Fund managed by Nostetta Ventures has been launched and starts its operations today. The fund invests in early stage growth companies in North Savo, Finland with a mission to develop the business scene and to strengthen the vitality of the region. The size of the fund is 10M€ and the aim is to invest in 10-15 companies within a 5-7-year period.

“North Savo has strong competence in the fields of health, cleantech, ICT, energy and technology. These sectors are the main investment targets, since we want to be involved in ensuring the best growth possibilities for the top sectors of the region”, says Heidi Ahonen, the Managing Partner of Nostetta Ventures.

Team Nostetta Ventures has versatile experience from various industries, and it will actively participate in business development of the fund’s portfolio companies. The team will provide its expertise, network and support to the portfolio companies in order for them to achieve their goals for growth and internationalization.

The portfolio companies are sought together with other actors within the region, such as banks, Finnvera and private investors. The portfolio companies are selected during the fund’s first three operative years. After this, follow-on investments are made to these companies to support their development and growth.

“By syndicating, in other words, by making collective investments with other venture capitalists, the effectiveness of the fund will be doubled or even tripled”, says Ahonen.

The public investors of the fund include the cities of Kuopio, Iisalmi and Varkaus with 2,2M€ investment share. Along with the direct investment, the city of Kuopio invests in a 4,9M€ grant from the Centre for Economic Development, Transport and the Environment (ELY-keskus).

“The major goal of the capital investment is to enable the growth and internationalization of early stage companies in order to affect the attractiveness, economic growth and employment rate of the region”, says Jukka Pitkänen, city of Kuopio’s Director of Economic Development. “The investment is also an excellent example of good co-operation between the cities of Kuopio, Iisalmi and Varkaus”.