The applicant has to prepare and send Business Finland Venture Capital Ltd a written application. However, prospective managers are encouraged to approach Business Finland Venture Capital Ltd before submitting an application to present fund’s investment strategy and team’s credentials.
Mandatory initial information (should be no more than 10 A4 Pages)
- Commitment in euros sought from Business Finland Venture Capital Ltd and the fund’s target size
- Basic data of the management company of the fund
- Details of the fund and the fund structure
- Fund’s name, legal form and domicile as well as other basic data of the fund.
- Investment strategy including information and reasoning behind proposed investment opportunity and themes, including target sectors and investment stages of investee companies at the time of initial investment as well as return expectations on fund level and return target for individual investments
- Deal flow: sources and deal flow generation
- Fund’s investment instruments and investments structures
- Length of investment period and term of the fund
- Proportion of capital as a percentage of total commitments, reserved for initial investments and follow-on investments
- Fees and profit distribution:
- Details of the management fee, establishment costs and any other fees and costs that will be charged to the fund
- Proposed profit distribution model. If asymmetric profit distribution is proposed, please justify this and attach calculations of the effectiveness of asymmetric profit distribution to private investors
- Proposed carried interest
- Provide an overview of the planned fundraising timeline and details of desired private investors or investor groups to the fund and their planned commitments to the fund
- Details of personnel of the management company involved in the fund and details of their investment track record; from the team as a whole and for individuals within the team.
- Details of personnel’s time commitment to the fund and details of their other work contracts and business or investment activities, if any
- An overview of management company’s personnel planning for the term of the fund
Following documents should be included as annex to the application (not included in the maximum number of pages of the application).
- Legal structure chart of the fund. Details of the ownership structure, including the general partner and the management company of the fund and their owners with their personal/business ID until ultimate owners.
- The management company, its owners presented in the ownership chart and key investment personnel of the fund, give a written consent to Business Finland Venture Capital Ltd that it can check their respective credit ratings or credit scores as well as tax data. Also, they are required to describe any known litigations they are a party in and any criminal convictions against them in writing.
- Key investment personnel of the fund give a written consent to Business Finland Venture Capital Ltd that it can store their personal data to its contact detail , investor and stakeholder register
- Comments and proposed amendments to the model limited partnership agreement
- CV’s of the key personnel of the management company
- Management company’s budget for the current and next five financial years
- Copies of private investors letters of support, indications to commit to the fund or equivalent, if any
- Draft investment policy
- Principles of Responsible Investing
- Draft investment process
- Draft Private Placement Memorandum and investor presentations, if any
Application should be sent to: info (at) businessfinland.vc
After submission of an application Business Finland Venture Capital Ltd undertakes business, financial and legal due diligence processes necessary in order to ensure commercially sound investment strategy and that it complies with Business Finland Venture Capital Ltd’s investment policy, risk finance program as well as state-aid regulation. Business Finland Venture Capital Ltd may use external experts to carry out due diligence processes.
During the evaluation period of an application, Business Finland Venture Capital Ltd will ask a prospective manager to fill in a due diligence questionnaire.