Early
Finance
Helsinki, Finland
Last updated January 25, 2019
We are an investment company. We act as an anchor investor in digital fundraising.
Early
Stage
1
Employees
2017
Founded
Financial information
Rows marked with an asterisk are estimates.
Revenue EBITDA
2020* 357.013 EUR 19.579 EUR
2019* 316.180 EUR 10.924 EUR
2018 243.596 EUR 9.847 EUR
2017 5.044 EUR 487 EUR
Latest news

Q4 report published

We have published the performance update for Q4 2018. It can be found behind the link...

Q4 raportti julkaistu

Olemme julkaisseet neljännen kvartaalin raportin - Lukeaksesi raportin, kopioi oheinen linkki selaimeesi....

Business & market

We have a growing market to invest in. The traditional financial industry has been slow to react to the rise of digital finance.

Business & market

The digital investment platforms are growing rapidly. In 2017 the Finnish equity-based crowdfunding totalled €56m (+123%) but this excludes some of the platforms that did not disclose their numbers for the survey. The Bank of Finland has reported that the total digital finance market, including debt-based crowdfunding and PtP lending, totalled €247m in the same year (+61%). In the Nordic Countries reliable data is not available but University of Cambridge report estimated that the total market in Europe was €7.7bn in 2016 (+41%), mainly focusing in the UK.

The market is young and unfortunately much of the deal flow is either bad or overvalued. But there are already some very successful investment cases. Revolut, a UK-based digital wallet which entered Nordic countries recently, raised 1 million pounds in July 2016 from crowdfunding at GBP 42m valuation. This summer the company was valued at GBP 1.2 billion and crowd investors were offered to sell back their shares for 19x return.

In investment portfolios, unlisted equities are still a small and uncommon asset class. Many wealth managers and investment professionals recommend that investors should have 5-15% of their total portfolio in unlisted equities but these have mostly been available to high net worth individuals only. Digitalisation helps to open these opportunities to retail investors but not everyone feels comfortable doing the stock-picking, particularly internationally. In the public markets, retail investors are served by mutual funds, while VC funds provide diversified investment opportunities to institutional investors.

The traditional financial industry has been slow to react. The existing legal structures were not applicable due to initially small size of the investable market. The legal & admin work related to a fund structure dictates a minimum size for a fund and the typical fund lifespans of up to 10 years can be challenging for early stage investing in minority stakes. Also, VC funds are typically not open to retail investors.

As the ecosystem grows and matures, we believe equity crowdfunding will become a natural alternative for companies aiming to list in the junior markets like Nasdaq First North. Consequently, there should be ample room for evergreen structures investing in minority stakes of such companies prior to public listings. We expect our role to grow into one that institutional investors play in stock market listings.

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Our team

Tero Weckroth

CEO

LinkedIn

Tero has 18 years of experience in investment banking, angel investing and entrepreneurship. Prior to this period he worked in the pharmaceutical industry. As an active business angel Tero has created multiple university spin-offs and currently serves in the boards of start-up and growth companies.

Eljas Repo

Chairman of the Board

LinkedIn

Eljas is one of the most experienced entrepreneurs and journalists in the investment scene in Finland. He was the founder and editor of Arvopaperi, a magazine focused in stock market investments. Since 2016 he has worked as an independent entrepreneur with focus in analysing unlisted companies.

Markus Bremer

Board member

LinkedIn

Markus has made a long career as legal council and entrepreneur. As a partner in Hannes Snellman he specialises in capital markets but he has also a 20-year career as an entrepreneur and part-owner of Lautapelit.fi which pioneered the growth of board games in Finland.

Teuvo Rintamäki

Advisor

LinkedIn

Teuvo made his career in management and finance in international business, culminating in long service as the CFO of Konecranes. Since 2008 he has been an independent start-up investor and advisor, particulariy in  energy, environmental and health care sectors.

Our story

We act as an anchor investor in digital fundraising. We aim to offer multiple benefits to our shareholders.

What is an anchor investor? In stock market listings (Initial Public Offerings or IPOs) the company raising funds often meets bigger investors before publishing their share offerings or deciding the terms or valuation. The lead investors include institutional investors, mutual funds, family offices, high net worth individuals and other professional investors. In specialised sectors, they include sector specialists. Since the digital finance ecosystem is still very young, our kind of digital lead investors have not emerged until now.

In addition to the lead investor role in a financing round, we can make soft or hard commitments to invest more in the next rounds if the company meets pre-agreed milestones. If the company develops their business well and the corporate governance is remains good we can play the lead investor role again in all the financing rounds until the IPO. This long-term commitment makes us more than a lead investor in a particular round, into an anchor investor on the company's growth path until exit or public listing.

Taikina offers multiple benefits for its shareholders:

  1. Liquidity. We aim to make our own share liquid as soon as possible. Unlisted growth companies often take a long time to develop and create value. This will be the case with most of our investment targets too and by investing in them directly, an investor will need to wait for a long time for exit or stock market listing. Our aim is to offer possibility to materialise value increase by listing our own share in public market place. Our investment strategy will not be purely exit-focused - if justified by fundamentals we are happy to continue owning a profitable and dividend-paying company. Our evergreen structure (i.e. no pre-determined lifetime or end-date) makes this kind of long-term creed possible. We won't need to exit promising companies for our internal reasons before the full value is realised. But we aim to enable our investors to realise the value increase by making our own share liquid.
  2. Diversification and stock selection. As a bigger and more professional investor, we are able to follow the deal flow more widely than a single shareholder can and compare a prospective deal to peers on a wider scale. This will enable us to diversify the risk over bigger number of cases and to avoid cases where valuation, company quality or other terms are out of line with peers. We also can gain access to deals where larger minimum ticket size or swift action is required, hence investing in cases that would be inaccessible to smaller investors acting alone. Separately, we can occasionally offer bridge financing for companies that are not yet ready for the platforms or distributed shareholder base and need help from us.
  3. Valuations. Bigger ticket size will improve the bargaining position in valuation discussions, including later follow-on financing rounds if the company raises more capital. Over time, we expect to build a reputation as a reliable anchor investor and hence gain leverage to negotiate crowdfunding discounts, comparable to IPO-discounts in public stock market listings.
  4. Better follow-up and control. Having a larger stake in the company and being able to participate in the future rounds, we will have a bigger influence on the target company governance than multiple small shareholders alone would. We believe the best corporate governance is reached when company has both big and smaller investors in the cap table.
  5. Cost synergies. In many platforms the investor fee depends on the size of the ticket (smaller percentage for big investments) and the fixed costs of becoming an investor are common, particularly in Peer-to-Peer platforms. In many equity platforms there are typical €100k or €200k minimum ticket sizes before the investor can invest directly in the target. Smaller investments are directed via an Special Purpose Vehicle (“SPV”), a separate holding company for one investment target only. Administration of the SPVs is costly even in case of failed investments. In successful exits they often cut the profits without ability to offset losses elsewhere against the capital gain. While running Taikina will cost some money too, we believe our costs are very competitive compared to SPV and fund fees. Additionally our success costs are based on profits on the portfolio level instead of separate cases.
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Funding & Documents

Taikina Capital Oy has raised 132.21k EUR in 1 funding rounds with a latest valuation of 403.4k EUR

Funding rounds
Date Amount
Dec, 2018 132.210 EUR
Forum

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