Growth investor: this is how your money goes to work

Few private individuals stop to consider the wider impact that the choices they make with their wealth can have.

“Many people keep large sums in savings accounts, but the money there generates very little return for the investor or benefit for anyone else. The main beneficiary is the bank, which can lend the money for its own purposes. It is therefore worth considering how to generate a return on your money while also thinking about what else you would like your investment to contribute to,” says Jouni Mäkelä, Investment Director at Springvest.

Investing often begins with easily accessible options, such as buying fund units or shares in a familiar listed company. However, when making an investment, it can be difficult to determine exactly what kinds of activities – or even what values – you are financing when, for example, you invest in a fund.

“It is also worth recognising that in funds and on the stock market, money generally moves from one investor to another. When you buy existing shares, you do not create new value or usually improve the company’s ability to operate. IPOs and share issues are exceptions to this.”

The impact can be far-reaching

When looking for new opportunities alongside more familiar forms of investing, one perspective to consider is the human and societal impact of an investment. Money invested in unlisted growth companies goes directly towards growth and developing innovations, and the economic impact can extend far beyond the company itself.

Companies that have raised capital through Springvest funding rounds are developing solutions in areas such as health technology, renewable materials, and security and defence technology.

“With our help, investors can contribute to improving people’s wellbeing in a very concrete way. If a company is developing a new cancer drug, the money invested goes directly into medical research,” Mäkelä explains.

Growth companies also create positive impact by generating new jobs. This can already be seen during the company’s early stages and can become even more significant if the company grows into an international success story.

“Market conditions have not been easy recently. That is why I believe it is important to invest in a way that can have a genuinely significant impact on employment. In doing so, investors can help not only individuals but society as a whole.

International success stories already exist

Finland’s own growth-investment ecosystem is younger than Sweden’s or Estonia’s, but it has grown quickly in recent years. More capital, more experienced investors, and more repeat entrepreneurs have entered the market, and the conversation has shifted with it: the question is no longer whether Finland can produce internationally scalable growth companies, but which one comes next.

“Who would have believed just a decade ago that Finland could produce internationally successful wearable technology or satellite technology companies? Today, we have Oura and Iceye, which are widely known around the world. Iceye’s satellites are used to monitor environmental conditions and national security.”

Read more about investment opportunities through Springvest!