Skip to content
News 19.02.2019

New programs boost investments in Finland’s growing circular economy

Finnish venture capital and private equity company Tesi is launching a program to fund circular economy companies for a total of EUR 75 million. The program aims to promote the growth and internationalisation of companies operating in the circular economy as well as the creation of funds investing in the sector.

The new program will make direct investments worth EUR 50 million in about ten companies, with a similar amount also coming from private investors, according to Tesi’s investment manager Matti Kangas. In addition to the direct investments, Tesi can invest up to EUR 25 million into one or two venture capital funds focusing on the circular economy.

The program also provides a framework for accessing the European Fund for Strategic Investments (EFSI) managed by Tesi, which can enable funding rounds of up to EUR 60 million, with half coming from Tesi and the EU, and half from private investors.

Business Finland launches Bio and Circular Finland program

Business Finland’s recently launched the Bio and Circular Finland program aims to make Finland a forerunner in the circular economy. The expected volume of the four-year program is EUR 300 million, of which the share of Business Finland’s innovation funding is EUR 150 million. In addition, the program will offer internationalisation services, renewing ecosystems and provide excellent opportunities for foreign experts, companies and investors to Finland.

“The circular economy has become a central theme of sustainable development alongside cleantech and bioeconomy”, says Jari Tielinen, Head of Bio & Circular, Invest in Finland. “These programs also facilitate the implementation of Finland’s Circular Economy Roadmap and Plastics Roadmap”, Tielinen continues. The Finnish Innovation Fund Sitra estimates that the circular economy will have a business potential of up to EUR 1.8 billion by 2030 in Finland.