Financial year 2018 again saw brisk activity in the venture capital industry, as was the case in 2017. The Finnish venture capital market continued to develop favourably and to internationalise, and the improved performance of Finnish funds reflected this.
Tesi made investment commitments to venture capital and private equity funds totalling MEUR 96 in 2018. Our international investor partners and portfolio funds invested MEUR 123 in Finnish companies during the year. The favourable conditions also allowed Tesi to successfully sell its holdings in international buyout funds.
Tesi made investment commitments to venture capital and private equity funds totalling MEUR 96 in 2018.
UNCERTAINTY IN THE AIR. Towards the end of the year, the pace of fund investment slowed as stock market valuations began to fall. The culmination of a protracted economic upswing combined with the threat of a trade war, among other factors, has created investor uncertainty. A slowdown in market growth is expected in 2019, both in Europe and throughout the entire global economy.
A correction in evaluation levels generally depresses buyers’ price expectations rapidly, whereas sellers’ conceptions of the price level are slower to follow. This can slow down the pace of corporate acquisitions and the raising of equity financing. If the fundamentals of the real economy remain favourable, we believe attractive investment prospects will still be found in the market.