FiBAN Monthly: better entrepreneurship and ownership policies for 2023
December 08, 2022
Ho ho ho! The year is coming to an end, and a new exciting year is ahead of us. Among other things, the coming year is an election year. This means there is an opening to form political strategies for a better environment for entrepreneurship and ownership.
Finland has a thriving startup ecosystem that creates a good proportion of new jobs and economic growth. This is the dynamite that needs igniting for the good of welfare. Today, it seems there are more ideas on putting down the flame than turning it into a bonfire.
There are many capable companies that could be taking the world by storm. Still, the pace is often next to nothing compared to foreign counterparties. The burn rate of the Finnish companies is slow, just as the capital raised is small. More capital is needed and therefore it is great news that plans for public co-investment funds are moving forward.
“There is still work to do to make Finland the best country to succeed both at home and internationally. With united forces and efforts from the ecosystem, there is a good chance we can deliver a meaningful message to new decision-makers.”Annukka Mickelsson, Chair of the board
Understanding the impact of angel investing relies heavily on data
FiBAN has had a remarkable impact on how the ecosystem looks today. This is many thanks to our active members and great partners. It is also delightful to see how many new actors there are on the field.
The financial market is evolving, regulation keeps changing and the whole ecosystem is transforming. This fall we learned how business angel investing has become more professional. Numbers are getting substantial. This calls for professional services throughout and also a good understanding of the industry.
The importance of reliable data is imminent. FiBAN does unique and valuable work in gathering data with all your great cooperation.
Policies should strengthen reinvesting, research and development
For investors to keep taking on sizable risk over again there has to be something making it worthwhile. The tax system should and could be carved to strengthen reinvesting both in businesses as well as research and development. Product development and company growth need systematic research to happen. Otherwise, you are fumbling in the dark. Unfortunately, Finland is lagging behind many other countries in incentives for R&D.
Other things could be looked into. Checking out Pitchbook’s latest study on universities and business colleges gathering funds on startups founded shows an alarming picture of nonexistent Finland. I hope this is just a matter of the right information missing from a reputable source. Looking again at Sweden, they have managed to fit in six universities among the 100 most startup-funded universities.
This is a bit of a wish list for Santa Claus or the next government could be delivering. As Christmas time is closing in, I wish you all a merry Christmas, many good deals for New Year, and healthy growth for all.
Chair of the Board, FiBAN
FiBAN Monthly is a blog series discussing current topics among FiBAN and angel investing. A new post is shared each month. In case you missed the letter from September, you can read it here.