Finland has seen two corporate venturing approaches to corporate impact investments through the creation of a venture capital firm and accelerator.
Finland-based electricity producer Fortum has committed to provide €150m ($170m) for Valo Ventures, US-based venture capital firm founded in the summer by Scott Tierney, a former partner at CapitalG, the corporate venturing arm of internet technology group Alphabet formerly known as Google Capital.
Valo will invest in early and growth-stage technology companies with products or services that promise a financial return, as well as long-term social or environmental benefits. Global issues on the agenda include empowered consumers, urbanisation and climate change as well as bio and circular economy.
Fortum had previously partnered external startups and research institutions, invested in internal ventures and has spent the past few years exploring its external venturing approach.
Pekka Lundmark, president and chief executive of Fortum, said: “Valo Ventures focuses on businesses beyond our core with high potential for growth.
“We want to enable the growth of startups that are building the digital future, especially in the field of artificial intelligence and data. We aim for a cleaner world and can’t do it alone.”
Scott Tierney and his partners, Julia Brady and Mona ElNaggar, added: “We see tremendous opportunity in working together to support like-minded entrepreneurs and global industry leaders to improve the quality of life for future generations.”
Separately, multi-corporate innovation services provider Avanto Ventures, Finnish state-owned investment agency Sitra and Nordic Innovation have created an accelerator called Loop Ventures to target the circular economy.
