There are currently several internationally interesting growth companies operating in the Helsinki metropolitan area. In the past, growth was strongly driven by gaming platforms thanks to the mobile gaming companies Rovio and Supercell, but the range of industries has since become more diversified.
Eerika Savolainen, Chief Operating Officer of the international technology and growth company event Slush, is excited about this.
“One reason for the success is that Finnish growth companies are getting better and better at raising international capital. Another reason is that there is a long-term growth business culture in the Helsinki metropolitan area. And Slush itself was founded ten years ago,” Savolainen says.
In Helsinki and the metropolitan area, the success of growth companies is also supported by the mentality of giving back. This creates an atmosphere where others are supported.
“Successful growth companies are happy to share their knowledge and networks with others to promote the common good. Without networks and mentors, entrepreneurship is difficult and lonely. Everyone benefits when everyone receives and gives help,” Savolainen adds.
The welfare state supports companies
According to Savolainen, the common strength of growth companies in the Helsinki metropolitan area is the vibrant local ecosystem. Companies are developing skills in the scaling up of know-how in the area. And when people change jobs, they also distribute their skills more widely.
The welfare state is one reason for the success of growth companies. In Savolainen’s view, it is fairly easy in Finland to pursue a university degree without regard to background and social class.
“Young Finnish adults see the start-up industry as a fascinating career path alongside traditional jobs.”
There is still room for improvement, however. Savolainen says that there is not yet widespread knowledge in Finland of how to build brands and commercialise them as well as in neighbouring Sweden. More product development expertise is also needed.
“We must be able to attract an international, talented workforce here. Helsinki has numerous advantages. Here, it is possible to combine work and the other areas of life in a balanced way. The benefits also include a good education system, closeness to nature and the fact that it is safe for children to get around in the city,” Savolainen says.
Courage and the ability to dream
Entrepreneur and investor Saga Forss also sees a lot of good opportunities in growth companies. One of the strengths of the metropolitan area, she says, is the prevailing open-minded attitude.
Forss is part of Finnish Business Angels Networks (FiBAN), which helps companies grow. She has also participated as an investor in the Finnish version of the Dragons’ Den series.
According to Forss, in order for Helsinki to succeed in the scale-up scene internationally, it is essential to have the boldness to become immersed in new ventures and to dream. These strengths can be found among young people in particular.
“There are open-minded young entrepreneurs in Helsinki, and thanks to them things are starting to happen. Young people know no national borders – the whole world is their oyster,” Forss says.
According to her, an example of pro-growth business development is the Helsinki Business Hub, which promotes the status and growth of foreign companies in the Helsinki region.
As an investor, Forss is especially familiar with the food industry. Although the Covid-19 pandemic has had a very severe impact on the restaurant business, further innovations are emerging all the time.
“It’s important to understand that not everything has to be done alone. If growth companies dare to join forces, a synergy advantage will emerge. That’s when companies are stronger in terms of both funding and expertise.”
6 scale-up companies to keep track of
Eerika Savolainen’s top 3
Wolt
A food courier service that uses a mobile app to deliver food and goods to the customer’s home. Recently received EUR 435 million from major international private equity investors.
“Wolt's team currently has a huge amount of expertise. They are learning to scale their operations with international ambitions and are building bridges to the world.”
Iceye
The Espoo-based company uses microsatellites equipped with synthetic aperture radars to provide near real-time radar images of space.
“Iceye is an interesting example of a deeptech company operating at the interface between science and entrepreneurship. It would be great to see more of this kind of entrepreneurship in the future. They have received funding from True Ventures and Silicon Valley, among other sources.”
Varjo
Develops the software and electronics industry as well as services related to areas such as virtual reality and augmented and mixed reality.
“Virtual reality is an interesting future area that has evolved by leaps and bounds in recent years. Varjo is one of the companies that is expanding the Helsinki scale-up field to new industries and increasing the positive growth and development cycle in Helsinki.”
Saga Forss’ top 3
New Nordic School
The company conceptualises the Finnish education system and takes it abroad, adapting the teaching according to the local culture.
“The company has opened a private preschool at Supercell’s headquarters in Helsinki, and has pilots starting up in Bahrain, the United Arab Emirates and the United Kingdom. The Finnish education system is widely regarded abroad, so expectations from the project are high.”
Music cluster
Music technology is thriving in Helsinki. The music cluster is represented by Big Ear Games, Musopia and Yousician, amongst others.
“Helsinki has succeeded in connecting music and investors surprisingly well. The cluster combines music learning, creativity and technology. These are the companies of the future.”
Soup+More
A restaurant concept focused on soups that emphasises locality and community. Soup+More serves healthy and fast lunch food in all of Helsinki’s market halls.
“Local ingredients combined with the motto “Never expect the same soup, just the same experience: tasty soup with a twist” is a concept I believe in. The Covid-19 pandemic has of course presented new difficulties to the restaurant field, but challenges usually also lead to further innovations.”
