Lahti Science and Business Park Ltd
The leading Cleantech Park in the Nordic countries
Lauri Ylöstalo
CEO | Lahti Science and Business Park Ltd
November 29, 2010
Lahti Science and Business Park Ltd
 The leading Cleantech Park in Northern Europe.
 Coordinator of the Finnish Cleantech Cluster
with over 500 member companies.
 The coordinator of the IASP Enviroparks network.
 100 % subsidiary renewable energy centre
Energon (TRI Energy Oy).
We are developing
 Turnover 2010 7.6 M€. Budget 2011 8.8 M€.
the Lahti region into
 Project portfolio over 30 M€.
a world-class centre
 Number of personnel appr. 50.
for environmental
 CEO Lauri Ylöstalo.
business
 Member or Partner of
and research.
 TEKEL (Finnish Science Park Association)
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IASP (International Association of Science Parks)
EBN (European Business and Innovation Centre Network)
EEN (Enterprise Europe Network)
Greenovate! Europe, Cleantech Scandinavia, Global Cleantech Cluster Association
Lahti Science and Business Park’s
Services
 Development services for growth-companies
 Business Incubator and ICT services
 Business development & internationalization
services for Cleantech companies
 Internationalization programmes: China, Russia, India.
 Investor & financer contacting: Cleantech Venture Day.
 Invest-in activities & soft-landing services
 Lahti Cleantech Park – facilities & services.
 Cleantech infrastructure - R&D labs, pilots,
test-beds:
 Energon – Renewable Energy Research Centre
 Pilot-scale Soil Research Centre
We are developing
the Lahti region into
a world-class centre
for environmental
business
and research.
Finnish Cleantech Cluster
 Regions Kuopio, Oulu, Uusimaa, Lahti.
 Led by Lahti Science and Business Park Ltd.
 Mandated by Ministry of Employment and
Economy (2007-2013).
 Target in increasing Cleantech know-how and
business in Finland and in internationalizing
the Finnish SMEs.
 260 member companies of which the most
are significant universities and research
institutions. 60 % Cleantech business and
80 % of research in Finland.
 Ongoing internationalization programmes:
China, Russia and India.
Finnish Cleantech Cluster
was ranked the 3rd best
Cleantech Cluster
in global benchmark 2010
by Sustainable
World Capital, USA.
THE EXPERIENCE OF
BUSINESS INTERMEDIARIES
IN FINANCING ECO-INNOVATION
Lauri Ylöstalo
CEO
Lahti Science and Business Park Ltd
November 29, 2010
THE EXPERIENCE OF BUSINESS INTERMEDIARIES
IN FINANCING ECO-INNOVATION
What are the recurring challenges that organisations
facilitating access to finance for SMEs observe?
What initiatives could help improve the match of demand with
the offer? Is it
 networking
 information sharing
 investment readiness OR
 something else?
Lauri Ylöstalo
CEO
Lahti Science and Business Park Ltd
November 29, 2010
Understanding the difference via
comparison of IT and Cleantech
IT
 Global standardization has made it
possible for start-ups to “play and win”.
Cleantech
 Highly dependent on local climate,
needs, culture, vegetation, history etc...
Drives different technological
solutions deeply into the solution
design.
Requires still a lot of technical
and localized knowledge from
the financiers.
Venture Capital and Cleantech
Couple of years ago …
 Technology & science-oriented “green”
people with less attention to business
plans.
Now
 More and more entrepreneurs with
good business instinct entering the
cleantech arena.
 Purely Cleantech focused investors
have paved the way – generic funds
have followed.
 Success stories and second-wave of serial
entrepreneurs improve the dealflow.
 Exits exist – Venture Capital market exists.
However, still very young industry but
becoming mainstream.
Challenges…
Unpredictability and discontinuity of legislation
still a major risk
 Many of the eco-innovations lean on subsidy
schemes -> public & private risk sharing is
needed.
Gap between public R&D funding
and private VC funding
-> public & private risk sharing is needed.
Financing CAPEX intensive
demonstration projects is a major bottle neck
 has become even worse problem with financial crisis as risk capital
moved way from the technology risk (from early-stage companies to
expansion) -> Pro-active domestic marker is needed.
Lahti’s example to tackle
the demo bottle neck
Energon
 Renewable energy research centre
for companies to demonstrate their
technology prior to commercialization.
 Bio-oils and biogas, solar,
heat pumps, monitoring of
emissions.
 45 % of the financing from
European Union.
New innovative financing tool with
public & private risk sharing
VIGO Programme
 Bridges the gap between early-stage
technology companies and
international venture funding with
matching the government-backed
funding with VC funds.
 Start-ups selected by a VIGO Accelerator gain
streamlined access to a 1 M€ TEKES grant
(TEKES = Finnish Funding Agency for
Technology and Innovation).
 Private investment of ~300k€ required to
receive the grant.
 VIGO Accelerator receives up to 10 % sweat
equity in the venture and management.
Finnish Cleantech Cluster
was ranked the 3rd best
Cleantech Cluster
in global benchmark 2010
by Sustainable
World Capital, USA.
Cleantech Venture Day in Lahti since 2005
 In 2005 less than a handful of fundable projects…
now we are able to select the best from
competitive deal-flow.
 In 2010 total of 250 participants: 60 investors,
80 cleantech companies from all over the world.
 70 % of the presenting companies have gained
access to VC funds.
 Coaching of entrepreneurs and their business
plans has become an important part of the
Cleantech Venture Day.
 Cleantech awareness of the VC community has
greatly been improved.
Emerging trends …
 VC money getting gradually back to early stage
companies after financial crises.
 Chinese and Indian money seeking investment
targets in cleantech.
 Emerging markets are also very often part of the
expansion strategies of cleantech companies.
 Mainstreaming cleantech: large corporations
getting involved.
Case China
FECC’s
POLICY LEVEL
SUPPORTING
ACTIVITIES
CLIENT
COMPANY
INTERFACE
General Approach
• GoVT LEVEL MOUs and OTHER PROCESSES
• PROCESSES in FINLAND & EUROPE
• FECC & PARTNERS (Opening doors; Support thru the
whole business process)
• OTHERS (e.g. FINANCIERS) + NETWORKING +
SISTER CITIES
• MARKET SURVEYS; PROJECT DEVELOPMENT;
LEADS THRU NETWORKS
• CONTRACTS & AGREEMENTS
• CLUSTERS
• SMEs
SINO – Finnish Cleantech MoU’s
中芬政府间环境合作协议
 1997 (1987) MoWR (China) / MoAF (Finland):
Science and Technology within Water Resources Sector
 2002 (1996) MoEP (China) and MoE (Finland): Environment
中国环境保护部与
芬兰环境部
 2007 NDRC (China) and MEE (Finland): Cleantech
中国发改委与芬兰就业和经济部
 2009 Mofcom (China) and MEE (2 MoUs): Ecological Zones &
HighTech 中国商务部与芬兰就业和经济部: 生态区域,中国创新中心
 2009 Mountain-River-Lake Development Committee of Jiangxi
Province (MRLDO) and FECC: Cleantech
FECC 与江西山河湖委员会
Major Achievements
 1st operational year the budget was 10-folded
(contracts for companies).
 2nd operational year budget was more than 100-folded.
 In the May 2010 Cleantech seminar in Beijing FECC’s partner
companies signed agreements worth over 1,5 billion Euro!
 Cooperation with NDRC (MoU) in good progress.
 Market Studies (Solid Waste, Waste Water, Western China,
Air Pollution, Bioenergy , Biogas N-E China).
Ongoing Activities
AGREEMENTS
 Cooperation agreements: Juno Capital Group; STTE ; MRLD.
 More than 20 Added value services-agreements with companies.
PROJECTS – over 20 projects in different development stage:
 Bioenergy , Sediment sludge, Ecocities, Bioethanol, Waste water.
 Energy Efficiency market survey (buildings, housing) with FinPro.
Case India
LahtiSBP & YES Bank cooperation since 2009
 YESBank is a leading Indian new-age private
sector bank having a strong focus on
sustainability and clean technology and
providing advisory services for Finnish clean
technology companies in the Indian markets.
 LahtiSBP & YESBank offer joint advisory
services to Finnish and other Nordic companies
pertaining to entry into Indian markets,
joint venture formation, strategic acquisition,
strategic sale to Indian companies and fund
raising for India operations.
Finnish Cleantech Cluster
was ranked the 3rd best
Cleantech Cluster
in global benchmark 2010
by Sustainable
World Capital, USA.
Climate Change
Big Challenges – Great Opportunities
Lauri Ylöstalo | CEO | Lahti Science and Business Park Ltd
Suggestions for further work
To bridge the gap between R&D
and expansion stages
 Benchmarking and exchange of best practices
in public & private risk sharing.
 Development of innovative public & private
financial tools (e.g. Singapore and Israel).
 Learnings from ICT sector financing
To localize the knowledge and better
penetrate into the emerging markets
 Stimulate the establishment of cleantech focused
business and financial hubs in target markets.
 Cooperation with incubators, science and
technology parks and VC capital in target markets.
Lahti Science and Business Park Ltd
The leading Cleantech Park in the Nordic countries
Lauri Ylöstalo
CEO | Lahti Science and Business Park Ltd
lauri.ylostalo@lahtisbp.fi +358 400 708 719