Nokia Siemens Networks (NSN), a Finland-based telecoms equipment supplier, has committed €10m ($13m) as the first limited partner in a venture capital fund that will invest in corporate spin-offs.
The Verso Spin-off Fund will invest to help form independent companies from projects that are not in the core of the NSN’s strategy. The aim is to get also other large companies as investors, thus helping the creation of new businesses in Finland, according to VersoVentures, which is managing the Spin-Off fund.
Pekka Soini, Finland country director of NSN, said: “The Verso Spin-off Fund creates a model for large companies to invest in the initial capital of start-up companies. In Finland, funding for this phase has mainly been available from public sources.”
Anssi Kariola, fund manager of the Verso Spin-off Fund, added: “In the first phase we received close to 40 applications, and the evaluation of their business potential has started. Our aim in the first phase is to create a portfolio of 10 to 30 start-up companies.”