Investor Who Invested Euro 24 Million into Finland...

Talouselämä | Finland - Below is the translated English version of the Ascend team's interview with Finnish newspaper Talouselämä.

Investor who invested 24 million to Finland is  puzzled about the Finnish culture: "when people disagree with you secretly, they do not take it up with you immediately"

A year ago, Ascend Capital Partners, founded by venture capitalist Monita Mo, reported a total of EUR 24 million in investments in four Finnish startups at Slush. The portfolio companies consisted of health technology companies Grundium and Fimmic, as well as automotive companies Canatu and TactoTek. After one year of investment, Mo wanted to share her observations on Finnish corporate governance, corporate culture and growth. That's why Ascend Capital organized a seminar on Tuesday in Helsinki."

Of course, as an investor, we would always like companies to move faster. Culture is different. When we took the companies to visit China, they saw the pace there. The whole atmosphere is different," Mo says. After their investment, the Ascend team brought their Finnish startups to China to meet potential customers. Some of the visits immediately resulted in pilot phase agreements. Ascend Capital Partners makes big one-off investments because Mo wants to be the company's largest investor and active player in the company. For example, in their investment in Canatu, Mo acquired shares of old owners."

We are trying to push the company’s leadership to be uncomfortable; and past their familiar boundaries. Finnish startups need shaking," Mo says. One of the biggest shocks for the Ascend team has been their interactions with other Board of Directors. "We are usually met with silence. We talk during meetings, but nobody is disagreeing with us. When we express our views, everyone seems to be in agreement. But in reality, we find that people disagree, but it is not immediately raised in the meeting, it comes back to us in weeks. And it slows down progress," her daughter, Elaine Mo of the Ascend team based in San Francisco says. "Finnish companies' Boards are homogeneous. It can lead to groupthink that doesn't enable people to look outside the box," Elaine Mo says.

Another important topic Mo wants to talk to Finnish startups is cash flow. Revenue from the customer sales is better than funding from venture capitalists, or from Finland’s public funding. Mo does not consider Business Finland's financing to be a bad thing, but thinks that companies should not rely on it too much. She requires companies to be able to stand on their own feet financially.

After this cultural shock, is she no longer willing to invest more in Finnish companies? "Certainly. I believe in Finnish technology. But first I need time to build up my four investments, I need time to adapt to culture. But we are still looking at innovative companies," Monita Mo says.

Find the original article here: https://www.talouselama.fi/uutiset/suomeen-24-miljoonaa-sijoittanut-hammentyi-suomalaisesta-kulttuurista-selan-takana-ollaan-eri-mielta-mutta-sita-ei-oteta-heti-esiin/c07762cd-bccc-358d-82f7-1107243596e5