Tekes Funding as Bridge to Co-

operation with Chinese Companies

Teija Lahti-Nuuttila

Executive Director, Tekes

June 2015

Tekes – growth and wellbeing from renewal

05-2015DM 1462612

Main public funding organisation for R&D and innovation in Finland

Networks and expertise

Focus on growth-seeking, innovative SME’s

Seeking for forerunners and strategic innovations

Customers: Finnish and international companies

located in Finland, universities, research and

other public organisations

Funding instruments: grants, loans and

soon also capital investments

Annual budget 610 million USD

Personnel 400 in Finland and abroad

Ministry of

Education and

Culture

Finnvera

Academyof Finland

Tekes

Finnish IndustryInvestment

Sitra

Public funding actors in the Finnish

innovation environment

02-2015DM 36100

Basic research Applied research Business R&D Business developmentMarketingInternationalisation

Finpro

Regional ELY Centres

Tekes’ services for SMEs aiming for international markets

Plan global growth:

test customer need, understand markets,

build a good team

Create new data and knowhow for

future business.

Develop management, worklife,

productivity, processes and

knowhow.

Develop or renew products, services

and business model. Convince the

customer that the product works.

DM 1272687

Planning for global

growth

Research and

development funding

Development and

piloting

Team Finland

services

Organisation

development

Programmes

National level MoU’s

State agreement S&T 1986 MOST – MEE – (Tekes)

- China-Finland Nano Innovation Center MoU 2011 MOST – MEE

- China-Finland Cleantech SME Cooperation 2013 MOST -Tekes

Beautiful Beijing MOU between Tekes, the Finnish Funding Agency for Innovation and the Chinese

Ministry of Environmental Protection (MEP) - 2013

5-year Tekes MoU’s

Shanghai S&T Commission (since 2005, renewed 2010)

Beijing S&T Commission (2007, renewed 2012)

Jiangsu Province S&T Department (2007, renewed 2012)

Zhejiang S&T Department (2009, renewed 2013)

University agreements

Tsinghua University Finlab program 2014

Tongji University 2011 (5 years)

Fudan University – iLab program (MAP – program) 2012

Tekes China Network

Cooperation projects in China funded by Tekes

Joint calls in practise

• At least one Chinese and one Finnish company participant.

• Academic/research entities are eligible to join as sub-

contractors only.

• Both Chinese and Finnish sides must submit their

application. One side application is not valid.

• Finnish participants submit proposals through Tekes'

electronic system and include a project plan and own funding

plan.

• The funding will be granted according to both countries'

usual funding principles.

• Tekes will follow the Tekes normal funding rules.

Experiences

• More and more companies interested

• Joint calls have been easy to operate –

efficient and productive way to cooperate

• Match Making events and visits a crucial

part

• Capacity building in different business

cultures and operating environments also

important

Tekes funding is either a loan or a grant

DM 1272687

Loan - companies’ development and piloting projects

When commercialisation is near or when existing know-how is applied

for generating new business activity

Company can test and ensure the functionality of the solution with

the customer

Loan has a low rate of interest. No collaterals needed.

Possible to receive 30 per cent of the funding already when the

project begins.

If the project fails, part of the loan may be partly converted into a grant

Grant - companies' research projects

Tekes offers grants to companies' research projects, where the main

emphasis is on creating new competence and knowledge.

Grant is paid on the basis of the project's actual eligible costs

Tekes’ innovation funding for SMEs

grant max. 50 %

Development

and piloting

loan 50–70 %

Planning for

global growth

grant 50 %

max. EUR 100 000

Companies under 5 years: grant 75 %

max. EUR 50 000

Research projects

DM 1272687

Funding for the bestideas and companies

Spirit to grow

Resources to develop

Courage to take risk

Expertise to succeed

Winning team

DM 1272687

Funding for foreign companies

Tekes can fund R&D projects of

foreign owned companies

Legal entity and operations are

required in Finland

Foreign owned companies are

funded on same criteria and

conditions as Finnish companies

Funding application is required

05-2015DM 1462612

Tekes Venture Capital Ltd – key facts

• Promote the business activities of theFinnish early stage companies by makinginvestments in venture capital funds

Mission

• Develop the Finnish venture capital market

• Help early stage companies to attract moreprivate investments

• Versatile capital supply to early stagecompanies

Goals

• Owned and financed by the state of Finland

• Ownership steering by Tekes

• Operations based on GBER*, risk finance programand investment policy

• 2 employees, 3 board members

• www.tekes.vc/en

Company

5.6.2015 13

* EU General Block Exemption Regulation

VC Market* and Tekes.vc focus area

145.6.2015

75

50

25

Lifeline Ventures

Butterfly

Vendep

Royal Majestic

M€

VNT Management

Early growth

EastWings

Conor

Inventure

OpenOcean

Vision +

Fun

d s

ize

Gorilla

Early stage

Tekes.vc

focus

area

Tekes.vc investment policy:

• Funds managed by private

management teams

• Fund size up to 20 m€

• Tekes VC’s share 25 % - 50 %

– However, ticket size max. 6 m€

• Asymmetric profit distribution for the

benefit of private investors possible

• Competetive market terms

• Open, continuous selection process

• Expecting to make 2 – 4 new fund

investments per year

* Tekes.vc view of the market. Not an exhaustive picture of VC managers and funds in Finland.

Including only funds with capital for initial investments.

Tekes customers are successful

01-2015DM 1401380

Ranks 50 fastest growing tech

companies in Finland 2014. More than

80 % of these companies have grown

to international markets.

Top 10 companies (Tekes customers bolded)

1. ePassi Payments (8,431%)

2. Tuxera (6,391%)

3. Valopaa (3,091%)

4. Alekstra (2,240%)

5. Diktamen (1,955%)

6. iLOQ (1,832%)

7. Anders Innovation (1,705%)

8. Efima (1,435%)

9. Eniram (945%)

10. Solinor (749%)

(growth in 5 years, %)

The Wired Magazine lists Europe’s hottest startup

companies. Most of the Finnish companies listed

are part of the Tekes young innovative companies

funding programme.

Nanol Technologies

Sumoing

Beddit

Diktamen

Playraven

Nexstim

Nextgames

Bitbar Technologies

Team Onomatics

5th Wave Brands

谢谢!

Thank You!

Do not hesitate to contact us!请立即与我们

联系吧！

www.tekes.fi/en