Angel­ Co­Fund

We invest together with angel investors in Finnish seed companies

Co-investing for Scale

  • Benefits of­ the­ Angel CoFund
    • 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.
  • Criteria for angel­ syndicates
    • 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.
  • Criteria for­ target­ companies
    • 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.
  • Q&A
    • 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 continuously looking for new investment opportunities.

€30 million 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.

Submit investment proposal

HOW THE ANGEL COFUND WORKS

1.

Lead angel gathers the angel syndicate and presents an investment case to the fund.

2.

Fund team supports the angel syndicate in due diligence and drafting the investment documentation.

3.

Larger financing round and involvement of institutional investor increase the odds of success.

4.

Members of the angel syndicate are actively involved in developing the target company and report to the fund together with the target company

KUINKA KANSSASIJOITUS­RAHASTO TOIMII

1.

Lead-enkeli kokoaa enkelisijoittajaryhmän ja lähettää sijoitusehdotuksen rahastolle

2.

Kanssasijoitusrahaston tiimi auttaa enkelisijoittajaryhmää kohdeyrityksen analysoinnissa ja sijoitusdokumentaation laadinnassa

3.

Suurempi sijoitus ja pääomasijoitusrahaston mukanaolo parantaa kohdeyrityksen menestymisen mahdollisuuksia

4.

Enkelisijoittajat ovat aktiivisesti mukana kohdeyrityksen kehittämisessä ja raportoivat kehityksestä rahastolle

Investment Process

Investment Proposal

 

The angel investor group 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 investor group must be at least €50,000.

The angel investor group, under the lead angel’s guidance, prepares an informal investment proposal for the co-investment fund. In addition to the analysis of the target company and investment information, the investment proposal includes a description of the angel investor group 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 Angel CoFund has negotiated with external experts to carry out legal due diligence on target companies. If the angel investor group has not conducted this examination, the co-investment fund will handle the assignment.

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Sijoituspäätös ja ehdot

Kanssasijoitusrahasto tekee sijoituksia suomalaisiin alle 5 vuotta vanhoihin siemenvaiheen yrityksiin. Rahasto tekee sijoituspäätöksensä enkelisijoittajien toimittaman materiaalin perusteella. Hallinnointiyhtiö arvioi mm. antaako sijoitusehdotus riittävän selvyyden kohdeyrityksen liiketoiminnan mahdollisuuksista ja riskeistä sekä sitä, onko tehty analyysi toteutettu riittävässä laajuudessa ja laadukkaasti.

Kanssasijoitusrahasto pyytää tarvittaessa lisämateriaalia lead-enkeliltä. Kanssasijoitusrahasto tekee ensisijoituksensa kohdeyrityksiin samoin ehdoin kuin enkelisijoittajaryhmä ja rahaston sijoitus on enintään saman suuruinen kuin enkelisijoittajaryhmän sijoitus. Lisäksi kohdeyrityksen osakassopimuksen on tarjottava mm. normaali vähemmistösijoittajan suoja ja mahdollistaa hyvä hallinto kohdeyrityksessä. Hyviä esimerkkejä sijoitusdokumentaation tyypillisestä sisällöstä löytyy osoitteesta www.seriesseed.fi.

Rahaston tavoitteena on irtautua kohdeyrityksistä seitsemän vuoden aikana ensisijoituksesta.

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Kohdeyrityksen hallinto ja raportointi

Kanssasijoitusrahaston hallinnointiyhtiön edustajat eivät toimi kohdeyrityksien hallituksessa, mutta rahastolla tulee olla oikeus saada kohdeyritysten hallituksen kokousten materiaalit ja muu sovittava raportointi. Kanssasijoitusrahaston toiveena on, että vähintään yksi enkelisijoittajista toimii kohdeyhtiön hallituksessa.

Sijoituksen jälkeen myös enkelisijoittajaryhmä raportoi kohdeyrityksen kehityksestä kanssasijoitusrahastolle ja antaa arvionsa kohdeyrityksen arvostuksesta. Kanssasijoitusrahasto tukee bisnesenkeliryhmiä kohdeyrityksien raportoinnissa.

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INVESTMENT PROCESS

Investment Proposal

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.

Investment Decision and Terms

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 influenced by the return potential of the investment and the suitability of the target company to be financed by venture capital investments.

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.

Management and Reporting

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.

Submit Investment Proposal

INNOVESTOR

Innovestor is a Finnish investment company focusing on early-stage venture capital investments and commercial real estate. We also offer corporate venturing services.

The total capital of the venture capital funds we manage is over €250 million, making us one of the most active venture capital investors in the Nordic countries.

Innovestor and Business Finland Venture Capital (BFVC) collaborate regarding the Co-Investment Fund. Innovestor is responsible for managing the fund, while BFVC has invested the entire capital of the fund.