Lack of exits slows Finnish business innovation

Today there in no way that VCs can make their exits with IPOs, said Artturi Tarjanne, General Partner, Nexit Ventures. They have to find buyers for the companies they have invested in or some other way to free their capital for next round on investments. Tarjanne claims the lack of exit opportunities has a slowing effect on European and especially Finnish business development. Recirculation of investment capital is needed to support new start-ups. Without exits there is no possibility to create serial entrepreneurs. “We need people who have the knowledge and experience in taking start-ups up the business ladder and to international markets. Only serial entrepreneurs can posses needed skills.” Tarjanne thinks that it would be beneficial if the Finnish government were to encourage taking companies to stock exchanges, for instance by granting tax breaks for special IPO stock exchange. Tarjanne also pointed out that even in Finland VCs have played crucial roles in the fastest growing companies. “At least one half of top 20 companies on the Deloitte’s Fast 50 list have VC money. Most of them are IT and mobile companies.” Nexit Ventures is seeking its own way out the sluggish Finnish exit market by extending it geographic scope to Sweden and California’s Silicon Valley.Artturi Tarjanne's presentation (2006-10-02)