The University of Eastern Finland is participating in North Karelia Growth Fund II, a new venture capital fund which supports early-stage growth companies in North Karelia and their internationalisation. Participation in the fund is part of the university’s long-term work to commercialise innovations and support growth companies in the region.
Managed by Redstone, North Karelia Growth Fund II continues the work of North Karelia Growth Fund, which was established in 2020. The new €10 million fund will, over the next five years, invest in approximately 15–20 early-stage growth companies in North Karelia or in companies building significant operations in the region.
The University of Eastern Finland will make a €1 million anchor investment in the new fund. The development of regional innovation activity and start-up ecosystems is one of the key objectives of the university’s investment plan.
“The university’s mission is to generate new knowledge and expertise, but it is equally important for us to help research-driven innovations find their way into wider use in society. This requires a functioning innovation ecosystem and sufficient capital for the different stages of company growth,” says Jussi Pihlajamäki, Vice Rector of the University of Eastern Finland.
“North Karelia Growth Fund II offers an opportunity to strengthen financing opportunities for growth companies in the region and, at the same time, to build an even closer connection between research, entrepreneurship and capital. For the university, participation in the fund is above all a strategic investment in the vitality, renewal and regional impact of eastern Finland.”
Previous fund has supported research spin-offs
The experience gained from the first North Karelia Growth Fund demonstrates the importance of regional capital for the development of growth companies. Through the fund, financing has also been channelled into companies that have emerged from research and expertise at the University of Eastern Finland.
Based in Joensuu, SeeTrue Technologies is one example of a deep tech university spin-off. Founded on eye-tracking research, the company has built its business in Joensuu and pursued growth in international markets.
Marginum, which emerged from the research and innovation environment of the Kuopio Campus, is another example of a research spin-off whose growth has been supported by regional investment funding. Marginum is developing technology to support cancer surgery.
These examples show that growth paths for companies emerging from research can be built on both University of Eastern Finland campuses. Regional capital can play a significant role particularly at the stage where a promising research idea moves towards a product, markets and international business.
“Commercialising a research spin-off requires long-term support, from developing the idea all the way to the first financing rounds and growth. The university plays an important role in the early stages of this path, but the development of companies also requires strong collaboration with investors and the wider innovation ecosystem,” says Minna Hendolin, Director of Impact at the University of Eastern Finland.
“We want to help ensure that an increasing number of research ideas generated at the university find a route towards commercial and societal impact. Particularly in eastern Finland, we need strong structures that bring together research, entrepreneurship, companies and financing. North Karelia Growth Fund II complements this whole and strengthens opportunities to build growth paths for research spin-offs in the region.”
Research impact is achieved through collaboration
North Karelia Growth Fund II brings together the region’s key investors, companies and developers around a shared growth objective. For the university, participation in the fund strengthens collaboration with regional actors and offers an opportunity to engage even more closely in the development of eastern Finland’s growth company landscape.
The fund’s significance is not limited to individual investments. It strengthens the region’s capacity to attract expertise and capital and to build, over the long term, an operating environment in which companies have better conditions for growth and internationalisation.
