Finnish Venture Capital Market in 2009 – Holding the Line Despite Global Downturn

TECHNOPOLIS PLC      PRESS RELEASE       February 11th, 2010 at 15.00 p.m.

Finnish Venture Capital Market in 2009 - Holding the Line Despite Global

In 2009, 58 Finnish Companies Received Investments Worth €101 million 

Technopolis releases its first annual Technopolis Online report that tracks
venture capital and angel investments into Finnish high tech companies. 

Investment activity remained higher than expected although there no large scale
investments as in 2008 (WinWind and Blyk combined €160 million), which explains
the decline in Euro-amount. 

The key findings are:
- In 2009, we tracked 58 Finnish high tech companies funded by domestic and
international investors. 
- The total sum of these investments was around €101 million. 
- From 2008, the overall investment activity (number of investments) declined
by 30.6% and the investment amount (€) declined by 60%, largely due to the
absence of “megadeals” (WinWind and Blyk) 
- Increased angel activity.
- Major decline in international investments, resulting in a high proportion of
early stage investments 
- Increased transparency into the venture capital marketplace in Finland. This
is essential in enhancing the market in Finland. 
- No Initial Public Offerings in 2009, as well as very few positive exits. This
is a challenge for credibility for the whole market. 

Will Cardwell, Director of Technopolis Development Services, comments: “Finland
fared well in the international comparison. And 2010 has seen a good start in
the investment activity (Footbalance, Rightware, MHG, etc.). But the lack of
exit opportunities or international investors continues to be a problem. We
need to keep working hard to solve these.” 

The annual report is based on information from the Technopolis Online service,
and can be found entirely at www.technopolisonline.com. 

Artur Surov, Project Manager, Technopolis Development Services
tel: +358 41 501 0732, 
e-mail: artur.surov@technopolis.fi

About Technopolis
Technopolis Plc provides business environments and services for
knowledge-intensive companies and organizations. The service portfolio ranges
from comprehensive business and development services to modern premises.
Currently, close to 1,200 companies with 16,000 employees operate in the
Technopolis centers located in Espoo, Jyväskylä, Kuopio, Lappeenranta, Oulu,
Tampere and Vantaa in Finland, and in St. Petersburg in Russia. Technopolis Plc
is listed on Nasdaq OMX Helsinki. 

About Technopolis Online 
Technopolis Online is a comprehensive investment database and virtual
matchmaking portal that offers complete and unbiased ecosystem coverage of
Finnish high tech. It covers all major high tech industries, companies,
investors, universities and key people. With dedicated national analyst team,
Technopolis Online is able to produce precise, relevant and valuable
information that is validated and exclusively in English.