FundDay 2025: From Public Support to Private Investment

On 4 November 2025, BusinessOulu hosted FundDay 2025, a full-day event that brought together Finland’s main public funding bodies and private investors.
The day guided participants through the complete funding journey, from early proof-of-concept grants to private capital, offering founders, students, and SMEs a clear picture of where to begin and how to progress.

Morning: Public Funding – building a foundation for innovation

The morning focused on public instruments designed to help innovators, researchers, and entrepreneurs reduce risk and validate their business ideas before moving to private investment.

PoC Funding – University of Oulu

Proof of Concept (PoC) funding helps transform early ideas into tangible products.
It supports feasibility studies, prototype development, and market validation, often the first step from laboratory research toward entrepreneurship.

Two tracks are available at the University of Oulu:

Student PoC – up to €5,000 for students testing business or product ideas.
Research PoC – up to €50,000 for research teams preparing for commercialization.

These schemes create a direct bridge to Business Finland’s Research-to-Business (R2B) programme, forming a pathway from idea to startup.

Anne Sorvari also encouraged students and researchers to make use of Business Corner, an open co-working and mentoring space at the university, where over 1,000 visitors participate annually in entrepreneurship events and startup mentoring.

Finnvera – Loans and guarantees for growth

Finnvera provides loans and guarantees that complement bank financing, helping new and growing businesses access capital.

Main products include:

Start Guarantee for new entrepreneurs.
SME Guarantee for investments and development projects.
Export Guarantees for companies expanding abroad.

Paakkola underlined that Finnvera operates in partnership with commercial banks, not as a direct grant agency.
Entrepreneurs should first contact their own bank, after which Finnvera can share up to 80 % of the loan risk, making financing decisions faster and safer for both sides.
She also noted that Finnvera increasingly supports internationalisation and green-transition projects, aligning with Finland’s sustainability targets.

ELY Centre – Development and growth grants

The ELY Centre offers EU-backed grants that help SMEs modernise operations, adopt new technologies, and grow internationally.
Support may cover expert services, R&D personnel costs, or trade-fair participation.

Turtiainen explained that the ELY Centre’s development aid especially suits micro and small enterprises in early growth stages that are not yet ready for large-scale Business Finland projects.
She encouraged companies to focus on clear, measurable development goals, for example, entering new markets, launching new products, or digitalising business processes , since these criteria strongly affect approval.

Funding typically covers 30–50 % of total project costs and is especially useful for smaller companies developing new products or services before larger-scale investments.

Business Finland – From innovation to global markets

Business Finland (BF) funds research, development, piloting, and globalisation.
Programmes such as Tempo, Market Explorer, and R&D loans help startups validate international potential and scale abroad.

Pussinen emphasised that Business Finland aims to reduce early risk and accelerate market entry.
He reminded founders that every BF programme is designed to prepare companies for international growth:

“We don’t want companies to stay small — we want them to grow and compete globally.”

He also highlighted that BF funding is non-diluting and typically combines grant and loan components, depending on the project’s stage.
This flexibility allows both research-based teams and established SMEs to progress toward private investment while maintaining ownership.

Sparks Funding – Bridging pilots and market validation | Oulu Innovation

Sparks funding supports startups that need to test products in real environments, for example hospitals, municipalities, or industrial settings , but lack resources for paid pilots.
It was established by Oulu Innovation to connect early-stage technology developers with pilot customers and testing facilities across the region.

Key facts:

Target group: Oulu-based startups and SMEs with international potential.
Focus areas: Printed intelligence, life sciences, dual-use and defence-related applications.
Funding range: typically €5,000 – €30,000.
Instrument type: Convertible-loan / royalty-based model — not a grant.
Repayment terms: 10 % royalty on turnover until 3× the funding amount is repaid; if the project fails, the loan may convert into small equity.
Process: Simple, non-bureaucratic application and light reporting requirements, with decisions made by Oulu Innovation’s financing group.

Löytynoja highlighted that Sparks was created to help bridge the missing step between prototype and commercial validation:

“There are great ideas and testing environments in Oulu — Sparks simply connects them. We share the risk at the beginning of the company’s journey.”

So far, Sparks has financed seven pilot projects, most of them in printed electronics, AI-enabled devices, and dual-use applications. The model has already helped several startups secure follow-on funding from Business Finland and private investors.

BusinessOulu – Startup ecosystem and upcoming early-stage fund

Laura Meriläinen highlighted Oulu’s vibrant startup scene — over 165 verified startups and several successful exits — and described the city’s support programmes such as Startup Express, Oyster Incubator, and future accelerator plans.

Despite strong entrepreneurial activity, surveys show a funding gap between early validation and scale-up stages.
To bridge this, BusinessOulu is preparing a new Early-Stage Capital Fund, set to launch in 2026, which will provide the first investment layer for young technology companies.

Afternoon: Private Funding – working with investors

The afternoon sessions explained how to approach private investors, angels and venture capitalists, and presented Oulu’s upcoming fund designed to complement public support.

Non-diluting funding strategies

Ville Heikkinen, Partner at Butterfly Ventures, showed how public and private funding complement each other.

Founded in Oulu in 2013, Butterfly has invested in over 100 Nordic startups, about 15 % of them from Oulu.

Heikkinen underlined that public, non-diluting funding allows founders to develop technology and validate markets before selling equity:

“Public and private funding are not opposites — they are partners.”

Butterfly focuses on science-based deep tech, combining science, hardware, and software, and has been recognised as Finland’s most sustainability-oriented venture fund.

How to approach and collaborate with angel investors

Serial entrepreneur Anssi Ylimaula shared his experience as a business angel and founder.
He emphasised that angel investing is deeply personal:

Investors back people, not only products.
Transparency and consistency are essential, never hide information.
Preparation matters: understand your market and customers.
Maintain relationships: regular updates build trust.

Ylimaula also presented Korpun Siemen, a group of Finnish angel investors who co-invest in early-stage startups.
Typical tickets range from €50,000 to €200,000, invested alongside a lead investor, allowing angels to share risk and access larger deals.

A practical guide to working with VCs

Marko Kuisma, Partner at Innovestor Life Science, compared venture capitalists to co-pilots:

“You’re the one flying the plane, choose a co-pilot you can trust.”

He explained how VC funds operate on ten-year cycles and rely on one or two “fund-returners” to generate overall profit.

Practical tips he shared with founders:

Research your investors. Know their focus and past deals.
Build trust early. Fundraising takes months, not weeks.
Be concrete. Replace vague promises with measurable plans.
Stay realistic on valuation. Unreasonable expectations discourage investors.
Avoid predatory terms. Partnerships should feel balanced.

After investment, founders should report honestly, use the VC’s network, and keep communication open.

“Good investors add value beyond money, through insight, contacts, and perspective.”

BusinessOulu’s Early-Stage Capital Fund

To close the day, Laura Meriläinen introduced concrete details of the forthcoming Early-Stage Capital Fund, planned to start operating in 2026.

Why it matters

Interviews and surveys among Northern Finnish startups revealed:

A clear early-stage funding gap between idea validation and growth.
High investor risk aversion.
Limited domain expertise and international experience among available investors.

Fund structure

Total size: €10 – 15 million.
City of Oulu commitment: €5 million (anchor LP investment).
Ticket sizes: €50,000 – €200,000 per company.
Fund manager: To be selected through a public procurement process in late 2025.
Launch year: 2026.
Operating model: Market-based investment fund, not a grant scheme.

Focus and impact

Target stage: Early-stage and pre-revenue startups.
Sectors: ICT, deep tech, life sciences, dual-use and sustainability technologies.
Collaboration: Close links with University of Oulu, OAMK, and VTT.

The fund aims to provide the first equity layer for promising startups, attract private co-investors, and strengthen Northern Finland’s investment ecosystem.

“We have done it before, and we will do it again,” Meriläinen concluded.
“This time, to empower the next generation of founders in Oulu.”

A continuum of opportunities

FundDay 2025 demonstrated that Finland now offers a complete funding continuum, from idea to international growth:

Stage	Typical Instrument / Partner
Idea / Research	PoC Funding, Sparks Funding, University Innovation Services
Development & Piloting	ELY Centre grants, Business Finland Tempo and R&D funding
Validation & Early Market	Sparks pilots, Startup Express, Oyster programmes
Early Investment	Angel investors, Korpun Siemen, Early-Stage Capital Fund (2026)
Scale-up & Growth	Venture Capital funds such as Butterfly Ventures and Innovestor

From students testing ideas in a university lab to SMEs preparing for global markets, FundDay 2025 clarified how each step connects.
Public instruments reduce risk; private investment accelerates scale; and together they build the foundation for sustainable innovation in Northern Finland.