A new fund for business angels, EAF Finland, aims to improve growth by financing start-up enterprises. The fund's 30 million euro budget comes from the Finnish Funding Agency for Innovation (Tekes) and the European Investment Fund (EIF). It was announced on Wednesday at the Arctic15 startup event at the former Nokia Cable Factory in Helsinki.
The way the fund works is that private investors in small businesses known as business angels agree to invest the same amount of money in a company as the EAF does, and a joint investment agreement will be signed. The stipulation is enough equity to manage at least 250,000 euros in start-up investments over 10 years.
The EIF choose which angels get involved with EAF Finland.
"The goal is to help growing and internationally-minded start-ups by utilising the know-how, networks and experience of Finnish business angels," Esko Raunio from Tekes says.
Tekes Venture Capital has already invested in ten different funds, which together have gathered more than 100 million euros in capital for more than a hundred companies.