Finnish Business Angels Network (FiBAN), together with Nordea, annually awards The Finnish Business Angel Exit of the Year. With the award, FiBAN aims to increase the interest towards business angel investing and to share the best practices from startup investing. Exits play an important role in inspiring private investment into the startup field. Positive exits also increase the private investment capacity. A great deal of the profits earned from exits are returned to the startup market in the form of new investments and this is something FiBAN wants to promote.
This year the award was given to a business angel syndicate, that invested in the same company. A syndicate is a group of investors who choose a lead angel amongst themselves to represent the syndicate towards the company during the investment discussions. Still, the company can enjoy the know-how and network of the whole syndicate group. For a growth company, getting angel investment is more than just money “The benefit of an investor syndicate is the diverse know-how and the wide networks that you get. We were able to utilize these benefits efficiently through the members of this syndicate. This gave us a good base for our fast and successful growth” says Fredrik Löfberg, founder and CEO of NordSafety.
An investor syndicate pools together the know-how of the business angels, who can share the risk and therefore get a diverse portfolio
The dynamic team and globally scalable niche market of Nordsafety attracted the business angels when Nordsafety came into the FiBAN deal flow and pitched for the investors at PitchFinland in December 2014. The business angels who invested in the company did not know each other on beforehand, but met through FiBAN and got to know each other during the investment discussions.
FiBAN Supports Syndication
FiBAN has an excellent angel investor network where most of the investments are done together with others. "Finland has one of Europe's largest and most active business angel networks, which creates a suitable framework for forming investment groups. There is a huge opportunity in structured syndicates" says Reidar Wasenius, FiBAN's managing director.
FiBAN actively enables forming structured syndicates through trainings, events, network possibilities, contract templates and sharing know-how. For an entrepreneur, a syndicate is legally a lighter alternative than a fund investment.
"Business angels are helping growth companies to get over the "valley of death", and without the risk-taking capacity of the business angels, many companies would get stuck in this valley. Many successful syndicates have formed within FiBAN, and their number will increase. NordSafety is a great example of a working investor syndicate, and we await many similar news." Wasenius rejoices.
More info on syndication can be found here: www.fiban.org/syndication
Business Angel Exit Awards from previous years:
Ainomaija Haarla (2016), Petteri Laitala (2015), Kaj Rönnlund (2014), Jari Ovaskainen (2013), Antti Pekkanen (2012) www.fiban.org/finnish-business-angel-exit-of-the-year
FiBAN's news about startup investing.