EIF IN
FINLAND
Investing in the future of Finnish SMEs
Small and medium-size enterprises are the heart of the Finnish economy.
Representing 99% of all businesses and more than two thirds of the workforce, Finland's 232,500 SMEs are responsible for driving innovation as well as spurring on growth, and their daily routine is what ensures the competitiveness of the Finnish economy. But to do that, they often need finance.
At the same time, as the smallest actors in the economy, they are often the hardest hit when the economy encounters turbulence, which is why it is so crucial for them to have financial options in order to maintain and eventually grow their businesses.
At the EIF, our mission is to improve access to finance for small businesses across the EU. In Finland, we have been supporting SMEs using a broad range of instruments, including many tailored to the needs of the Finnish market and designed with the Finnish government and local authorities.
As a result, we've been able to support close to 14,000 Finnish businesses, ranging from companies developing entertainment content for children and families, software-as-a-service (SaaS) solutions, and retinal imaging devices, making sure they have the financial fuel they need to pursue their ambitions.
Our intention is to continue to extend this type of support to the Finnish market, making access to finance easier as we collectively move towards a greener, digital and more inclusive Europe.
Success stories
Gigglebug
Success stories
Gigglebug
“Right from the start, this was always about spreading the ‘giggle bug’. It’s about cultivating positivity through family entertainment,” explains Anttu Harlin, co-founder and CEO of Gigglebug. “Our very first production starred a tiny character called Gigglebug who had the biggest gift of all: a contagious laugher that could unlock any situation. This character gave us the belief to start the company. If we could infect laughter through a cartoon character, the way that laugher infects socially, we would be adding true value to the animation game. Today, this thinking is part of our DNA, rooted in the Nordic approach to quality of life.”
Founded in Helsinki in 2013, Gigglebug Entertainment creates entertainment content targeted at children and families. Its work includes animated TV series, movies, games and gifs, and its mission is “to contribute joy and wellbeing to new generations, by bringing characters to life and heart and humour to original ideas and stories.” And its collaboration with the likes of Disney, Nickelodeon and Netflix means it is well-positioned to be a market leader in Europe.
Finnsiirto
“Every day we have to think about how we can change our business, how to introduce small changes to differentiate from our competitors. This is how we grow our business. We need to stay ahead of the pack,” explains Kalle Dahlman, Commercial Director at Finnsiirto.
Based in Lieto in southwest Finland, Finnsiirto is active in the field of professional forklift sales and logistics. In 2004 when Kalle took over the company, he looked to grow it from the outset. Initially, the company imported second-hand machines to Finland, selling forklifts. “We set up a strong partnership with Hyundai and started to think a bit differently, focussing on fleets. Instead of just selling, we rent out machines to customers and offer servicing as well,” Kalle adds. And the company has continued to grow, expanding with a sales office in Tallinn. In 2020, Finnsiirto bought two other companies, Simeri and Suomen Telakone, with the three together forming one of largest machinery companies in Finland.
Optomed
“We develop, commercialize and manufacture modern, mobile and easy-to-use retinal imaging devices that are suitable for any clinic for screening of various eye diseases,” explains Seppo Kospala, CEO. “Our product is disruptive in a sense. Unlike traditional retinal imaging devices, our devices are hand-held, have high accuracy and can give you results in 10 seconds. With our solutions, the cost for performing eye examination is also lower - around 10% of the equivalent study cost with traditional devices. And with the integration of artificial intelligence, the readings are now proven fully reliable.”
Optomed is a medical technology company that specializes in retinal imaging devices and solutions. The history of the company’s innovative product concept dates back to 1997, when a cooperation project was launched together with a visionary physician and a small group of engineers. Today, they integrate their software and artificial intelligence with their cameras, they provide accessible eye screening for everyone.
GardenLiving
“Covid-19 hit. We went into lockdown and everything stopped. But bills had to be paid—for all the stock of products we had bought for the entire season (April-October). That’s the point where you urgently need more liquidity,” explains Eva Wuite, founder and manager of GardenLiving, a “green oasis” (both for B2B and B2C) offering indoor and outdoor plants and garden products and services.
The business is the first green lifestyle concept in Finland. “We wanted to give Finnish horticulture a different touch, something out of the ordinary. We wanted to build a space where the client could get both services and products. With our in-house expertise and know-how, we can deliver outstanding design from landscape architecture, interior green design to garden maintenance and revamping,” she adds. With shorter winters up north, Eva is confident that the business has a lot of potential going forward. “If there is one thing that I can tell you for sure, it’s that green makes you feel good,” she concludes.
Timma
"At the time, we were young, just out of university, no liabilities, no mortgages, nothing to lose really. We came up with the idea, we thought it would work—and it did,” says Lari Mykrä, CEO of Helsinki-based Timma, a software-as-a-service (Saas) company that has developed an effective integrated management tool for hair salons, beauty parlours and the massage industry. The system itself allows appointments to be booked online, saving time for both the consumer and salon.
“We didn’t know much about this space when we started in 2015. We talked to potential clients, and interviewed them to better understand their needs, and built our system on this basis. We were lucky in the sense that all the members of the founding team studied together. We also knew good coders and put together a great development team. It became an instant hit in Finland and we just took it from there.”
Key figures
Over
of EIF financing
Transactions with financial intermediaries
Equity investments since inception
Guarantees support since inception
made available for
Finnish businesses
Mandates in focus
The EIF continues to deploy capital in Finland under a wide range of strategic programmes and mandates. Below are brief summaries of our main initiatives in Finland.
InvestEU
The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It is helping to mobilise private investments for the EU’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU Programme brings together under one roof the multitude of EU financial instruments previously available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
RCR
The EIB’s Risk Capital Resources (RCR) is the core pillar of the EIF’s equity activity. It has enabled us to pursue our equity strategy in the venture capital and growth segments for more than 25 years. In 2023, RCR accounted for 25% of our equity activity, committing €1.4bn to financial intermediaries.
EFSI
The European Fund for Strategic Investments formed part of the EU’s Investment Plan for Europe, launched by the European Commission in 2015. EFSI addressed market gaps in financing - whether in infrastructure, research, energy efficiency or risk finance for SMEs – and mobilised private investment into these areas. Through EFSI the EIF deployed €10.5bn in resources of the European Commission, the EIB and the EIF to improve access to finance for SMEs and small midcaps.
REPowerEU
The EU launched REPowerEU in 2022 to reduce dependence on fossil-fuel imports and accelerate the green transition. To support the plan, in October 2022, the EIB Group developed a package of measures focussing on renewable energy, energy efficiency, electricity networks and on deepening its engagement in green innovation and breakthrough technologies. Under REPowerEU, the EIF will invest €4.5bn by 2027 through EIF equity products.
EAF Finland
The European Angels Fund (EAF) - Finland is an €30m co-investment initiative funded by the EIF and Tekes Venture Capital. Established in 2017, it represents the Finnish compartment under the regulated European Angels Fund umbrella structure focusing on investments in Finland. EAF Finland is advised by EIF and aims at providing equity to Business Angels and other non-institutional investors to finance innovative or technology-oriented companies in the form of co-investments.
EGF
The European Guarantee Fund was created by the EIB Group with contributions from Finland and other Member States to protect companies struggling in the crisis caused by COVID-19. With almost EUR 25bn in guarantees, the EGF allowed the EIB and EIF to swiftly offer companies, mostly SMEs and mid-caps, access to loans, guarantees, asset-backed securities, capital and other financial instruments. The EGF forms part of the package of recovery measures put in place by the EU, with the objective of providing a total of EUR 540bn to support the hardest hit sectors of the European economy.
FICAG
In 2023, the Finnish government proposed the EIF as the implementing partner for a sustainability guarantee instrument, which builds on the successful implementation of the SME Initiative. With a total budget of up to €100m, including €17m ESIF and €83m national (RRF) budgetary resources, the Finland Climate Action Guarantee (FICAG) targets the fields of climate action, energy efficiency and renewable energy in order to support the Finnish government’s objective of reaching carbon neutrality by 2035. It also supports local enterprises, individuals and housing associations, accelerating their transition to carbon neutrality in accordance with Finland’s national strategy. Deployment will run through the InvestEU Member-State Compartment.
Find out more
