Entrepreneurship Evening: Funding

In the last Entrepreneurship Evening (November 18th) we had three awesome speakers with the theme funding. We had Terhi Vapola telling about VC funding, Ari Korhonen telling about Angel Investments and Hannu Puranen from Nordea.

 

Markku Hokkanen from Technopolis started the evening telling about their business. He also told us that Technopolis is happy to offer office-rooms for new entrepreneurs with discount.

2013-11-18-232

After this, Ari Korhonen showed up and started with Angel investment topic. Ari has been nominated as European Business Angel of the Year 2009.  He is the CEO of Lagoon Capital. He told us who business angels are, what they do, to why do they invest and what is their drive for doing this. We were able to ask him all different questions and he was happy answering them.

I am very interested about Angel funding, so I might have taken a lot of notes 😀 Here are the most important ones:

Ari told that he had invested in 21 companies and he had invested 75 rounds in 7,5 years. So the average is 3,5 times per one company. So he invests in average three new companies in a year.

He also told us that Angels invest to areas where they have the knowledge. Ari is investing in ICT, cleantech; energy savings etc.

He highlighted that Angels do not only invest to the companies with money. What is also at least as important is the knowhow, experience and networks Angels have.

He also said that when investing to the company, one of the most important things is the TEAM. Because with good team and bad idea, the team can leave the idea and start doing something else and make that succeed. But with bad team it might be difficult to make even the best ideas work.

He said that the three most important things are

  1. Team
  2. Business model
  3. Scalability

 

Here is a video that Ari posted in his Facebook few days after the EE. Check it out!
https://www.youtube.com/watch?feature=player_embedded&v=1b8YLBFQy44

 

Then Terhi Vapola had the stage. Terhi Vapola is currently working as a managing director of Lureco Oy. Lureco is a funding company which aims to fund LUT based companies. Terhi is also involved in several start-ups.

First she told us about herself first and what companies had she had/has and where she had worked before.

The biggest difference between Angels and VC is that VC invests other people’s money and angels invest their own money.

Here are the slides she had done https://www.dropbox.com/s/ov1o8au45j7i2bi/2013-11-18_lureco.pdf

During Terhi’s presentations Ari got excited and took the stage. He tried to make the difference between VC’s and Angels more clear to us. So he drew this:

rahoittajat

So the Y tells the probability to get finance and the X tells the risk. So in the (0,0) there are Family, Friends and Fools; that is very risky money. The next one is the Angel; they take a big risk but it is not easy to get the money from them. The Bank is a whole different level; when the risk is pretty small, you can get finance rather easily.

 

At last but not least, Hannu Puranen started his presentation. He talked about how important the numbers are when you are trying to get a loan from the bank. From the company’s figures bank can easily see the status, profitability and financial solidity.

The most important parameters are

  • sufficient amount of own capital
  • good equity ratio
  • good liquidity
  • good cash flow
  • low interest-bearing liabilities

It is really important for the bank to get the monthly payment from the company.

 

This evening was really interesting (at least for me). Big thanks to the speakers, board and everyone who were there. I have been so happy to see that we have had so many participants in different LUTES’s evenings this year. It has given very much motivation for the board and we have tried to do things even bigger and better.

 

“There is only one thing that makes a dream impossible to achieve: the fear of failure.” Paulo Coelho

 

With love,
Sonja