vuosikirja / yearbook 2007 – 2008 - Suomen pääomasijoitusyhdistys ry

FINNISH VENTURE CAPITAL ASSOCIATIONAbout the AssociationThe Finnish Venture Capital Association(FVCA) promotes and develops the privateequity and venture capital industry inFinland. FVCA has 39 full members. Thisrepresents the vast majority of Finnish privateequity and venture capital firms. In addition,FVCA has 71 associate members.Full membership has been approved for equityinvestors and venture capitalists representingpublic and private investment capital,captive funds and corporate venturing units.Associate membership can be granted to organizationsand individuals with an interestin the private equity and venture capital industry.The Objectives of FVCAFVCA’s objectives include developing venturecapital activities and practices in Finland,representing the members’ views and interestsin discussions with the government and institutions,providing assistance in improvingprofessional practice, co-operation with othernational associations and providing statisticsregarding the industry. FVCA is a memberof the European Private Equity and VentureCapital Association (EVCA).FVCA aims to improve the framework forventure capital/private equity activity inFinland by, among other things, contributingtowards the creation and development of anappropriate legal, fiscal and operational environmentand encouraging the developmentof a favourable entrepreneurial environment.Furthermore, FVCA sets coherent best practicesby elaborating operational principlesand requires its members to comply with theFVCA Code of Conduct. FVCA also enablesa unique network of contacts within theFinnish private equity and venture capitalmarket, providing a forum for the exchangeof views and experiences among its membersand interest groups.The main objective of FVCA is to enhancepublic confidence in venture capital and privateequity and also increase awareness withregard to venture capital and private equity asa part of established financial markets.What is Venture Capital/Private EquityPrivate equity refers to the provision of equityfinancing for companies not quotedon the stock market. Private equity can beused to develop new products and technologies,boost working capital, make acquisitionsor strengthen a company’s balancesheet. It can also resolve ownershipand management issues - succession in family-ownedcompanies or buyouts and buyinsof businesses by experienced managerscan be executed with private equity funding.Venture capital and private equity can be usedin investments in growth companies at anystage of the company’s life. These stages spanfrom the seed, start up and early stages to theexpansion stage, together with managementbuyouts and buy-ins of the company.The key elements of venture capital and privateequity investments include investmentin unlisted companies, usually with equity,and medium to long term investment horizons.The companies, in which investmentsare made, are characterized by growth potentialand prospects of realizing the investmentpreface11