We invest together with angel investors in Finnish seed companies

The Angel CoFund co-invests with angel syndicates in Finnish seed companies, offering funding, support, and due diligence to help these companies scale and succeed.

Co-investing for scale

The €30m Angel CoFund makes investments together with angel syndicates in Finnish seed companies. The fund’s initial investments in target companies range from €50,000 to €300,000.

A syndicate of at least three angel investors new to a target company can submit an investment proposal to the fund, which will make its investment decision based on the material provided.

  • Larger investment rounds offer better opportunities for creating growth at an early stage of the company.
  • The involvement of a venture capital fund at an early stage increases the chances of success.
  • Quick and easy legal due diligence of the target company.
  • Support in analyzing the investment target, preparing investment documentation, and reporting.
  • At least three angel investors new to the target company and independent of it, one of whom acts as a lead angel.
  • Each member of the angel syndicate invests at least €15,000.
  • Angel investors make investments either as an individual or through a company they wholly own.
  • The total investments from the angel syndicate at least €50,000.
  • Angel investors have relevant experience and expertise in the target company’s industry.
  • Equity or equity-like investment, e.g., convertible loan.
  • The investment round enables the target company’s operations for at least the next 12 months.
  • The company’s home country is Finland.
  • The company has been founded less than five years ago.
  • The company has fewer than 50 employees.
  • The company’s turnover has not exceeded €150,000 during its operation in any fiscal year according to the audited financial statements and based on the last 12 months’ accounting records.
  • The company is not an affiliate of another company.
  • The company does not operate in the following industries: weapons, alcohol, pornography, tobacco, gambling, or human cloning.
  • Can an EAF (European Angel Fund) angel be a member of the angel syndicate? Yes.
  • How is the company’s age calculated? Less than five years have passed since the company’s registration in the Trade Register on the day the investment proposal is submitted.
  • What is the investment period of the fund? The funds investment period for initial investments expires at the end of 2027 and until that we are continuously looking for new investment opportunities.
  • Can the fund participate in follow-on investment rounds? Yes, the fund’s share of subsequent investment rounds can be up to a maximum of half.
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How the angel cofund works

Investment process

The angel syndicate must include at least three new angel investors for the company, one of whom will act as the lead angel for the investment round. Each angel investor must invest at least €15,000 in the target company, and the total investments from the angel syndicate must be at least €50,000.

The angel syndicate, under the lead angel’s guidance, prepares an informal investment proposal for the Angel CoFund. In addition to the analysis of the target company and investment round details, the investment proposal includes a description of the angel syndicate members’ experience in the target company’s industry and how the members could support the development of the target company’s business. An example of what the investment proposal might include can be found at the following link: Investment Proposal Template.

The fund can pay a remuneration to the lead angel for preparing the investment proposal and reporting.

The Angel CoFund has negotiated with external experts to carry out legal due diligence on target companies. If the angel syndicate has not conducted this examination, the co-investment fund will handle the assignment.

The Angel CoFund fund invests in Finnish seed companies that are less than 5 years old. The fund makes its investment decisions based on the material provided by the angel investors. The management company evaluates, among other things, whether the investment proposal provides sufficient clarity on the target company’s business opportunities and risks, and whether the analysis has been conducted with adequate scope and quality. In addition, the investment decision is driven by the potential return on investment and the target company’s suitability for venture capital financing.

The Angel CoFund may request additional material from the lead angel if needed. The fund makes its initial investments in target companies on the same terms as the angel syndicate, and the fund’s investment will not exceed the size of the angel syndicate’s investment. Additionally, the target company’s shareholder agreement must offer, among other things, normal minority investor protection and enable good governance in the target company. Good examples of typical content in investment documentation can be found at www.seriesseed.fi.

The fund’s goal is to exit from the target companies within seven years from the initial investment.

Representatives of the Angel Cofund’s management do not serve on the boards of target companies, but the fund must have the right to receive materials from the board meetings of the target companies and other agreed-upon reporting. The fund desires that at least one of the angel investors serves on the board of the target company.

After the investment, the angel syndicate also reports on the development of the target company to the Angel CoFund and provides their assessment of the target company’s valuation. The fund supports angel syndicates in the reporting of target companies.

The fund can also participate in subsequent financing rounds.

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