Finnish market static

Finnish investments remained static in 2003 and fund raising experienced a slow-down, according to preliminary statistics from the Finnish Venture Capital Association. The total amount invested by Finish private equity firms reached €328m in 431 companies, down from €391m in 462 companies in 2002.

Fund raising slowed significantly after an all-time high in 2002. Funds raised reached €114m compared to €814m in 2002.

Investment focus was similar to the previous year. Around €226m was invested in 127 new investments compared to €282m in 136 companies in 2002 and €102m was invested in 304 follow-on investments in 2003 compared to €109m in 314 companies the previous year.

Management buyouts accounted for 43% of the total amount invested in 2003 at €139m. Seed investments fell in 2003 accounting for just 3% of the total amount with €11m compared to €29m in 2002.

In terms of sector, the highest amount invested was in traditional sectors such as the service industry and manufacturing. These sectors attracted €210m. The ICT and life sciences sectors attracted €112m combined.

Finnish investments Q12002 – Q42003QuarterM€ NumberQ1/2002 152 111Q2/2002 77 113Q3/200280103Q4/200282135Q1/2003100136Q2/200396126Q3/20036577Q4/2003 67 92Source: FVCA