Gorilla Capital is grateful and proud to announce that it has reached fund size of €41 million, just 10 months after the 1st close in August 2023.
This achievement highlights the confidence and trust our 90+ investors have placed in our strategy and team, even amidst the current market conditions. We extend our sincerest gratitude to our investors for their support and belief in our strategy as the The Nordic Institutional Super Angel.
The final close of the fund is scheduled to take place in fall 2024.
We are delighted and proud to announce that Gorilla Capital has been recognised for unique strategy & deal flow in the VC category of the SFR Alternative Manager Survey 2024.
The SFR ResearchAlternative Managers Survey 2024 was carried out in cooperation with the Finnish Industrial Investment (Tesi). Over 40 LPs representing over 270 billion euros of investment capacity were interviewed anonymously. Investors evaluated over 60 asset managers across VC, PE and infra categories based on the 12 criteria perceived to be most important.
Gorilla Capital was awarded in two VC categories:
Strategy Uniqueness for uniqueness and relevance of the strategy
Deal Flow for the ability to find attractive investment targets
“Category wins in SFR Alternative Managers Survey is a welcomed third-party validation for our long-term commitment in developing our distinctive strategy as the Nordic Institutional Super Angel. We have been able to raise awareness of the camel investing model amongst the investor community and maintain strong operational performance in a tough marketplace, where fundraising has been exceptionally hard both for the funds and the startups alike“, celebrates Risto Rautakorpi, the Founding and Managing Partner at Gorilla Capital.
SFR Researchis Finland’s largest completely independent asset management research company. It is well known and respected for the Institutional Investment Services Program (ISP), evaluating the performance of Finnish asset managers & other service providers annually since 2000. The Alternative Managers Survey follows the success of the ISP. The survey was created to assist Finnish institutional and private investors in alternative asset class investments by utilizing research data.
A wholehearted thank you to our anchor investors Business Finland VC and Elo, as well as our family office, foundation and numerous private LPs for your continuous support.
Crowdsorsa mobile game will be used in the summer to combat invasive plant species in the city of Helsinki and also in ~40 other cities around Finland, Sweden and the UK.
Crowdsorsa is a Finnish startup developing a mobile game for crowdsourcing data collection. The bring citizens and cities together via a mobile game, to work towards improved roads and cycle lanes, infrastructure assets, accessibility, biodiversity, and much more. Crowdsorsa sets up missions in the game, where people get paid for collecting data or doing micro-tasks such as repelling invasive plant species.
“Gorilla surprised me - you have brought a completely new way of doing venture capital to the Nordic markets.”
Vesa Vanha-Honko has an exceptional 30-year journey of value creation and innovation in Finnish private equity fund management. Vesa uses this expertise and knowledge in the investments of his own family office. Through Vesa’s rigorous selection criteria and screening process, Gorilla Capital’s vc fund was selected as a new investment for the portfolio. In this interview Vesa gives his thoughts on alternative investments and what convinced him to invest in the Gorilla III fund.
Building the family office portfolio
Vesa is a true pioneer in Finnish private equity and has had an integral role in building CapMan into the leading private asset management company in the Nordic region. The accumulated learnings and experiences Vesa applies to his personal investments, which are concentrated into his Family Office Vesasco.
The Vesasco portfolio consists of three parts. One part isstrategic holdings CapMan and Access Capital, which are for long term and yield dividends. The active portfolio consists of traditional listed instruments as the second part and the third is the alternative portfolio. The share of the alternatives is over 40 % of the active portfolio.
Vesa has built Vesasco’s investment portfolio patiently, relying on quality and diversification over time. The strategy is not to seek the highest return but to build a portfolio that delivers consistent returns and cash flow over cycles. Vesa believes that such a portfolio is best built by combining listed market instruments with unlisted alternative investments. In Vesasco, diversification is done not only across asset classes, but also across asset managers and the alternative programme is built for a very long-term horizon.“We at Vesasco target for overall reasonable steady return, it is enough. It would be harder to do this with only liquid portfolio because of the volatility. If the investor is willing to compromise on liquidity and the investment horizon is long, the alternatives not only stabilize but also enhance the yield across economic cycles”, Vesa says.
The total number of alternative funds in portfolio is 33 of which 17 are private equity (of which roughly half are fund-of-funds), 6 private debt funds, 4 funds in infra and real estate and 5 venture capital funds including Gorilla Capital.
Vesa stresses that if alternative asset classes are to become a significant part of an investment portfolio, it is advisable to build a long-term programme for the whole, which is followed systematically. Vesa continues that when starting to build a portfolio one should have a clear 7-8 year plan, during which the portfolio will be run up. After building period new follow-on investments and their capital calls can be financed by cash flow from old ‘vintage’ investments.
In Vesa’s view, the diversification is the key. It is good to have single-actor funds and a fund-of-funds structure, as well as primary funds in addition to secondary funds. Vesa also highlights the importance of cash management. “When the cycle is down, you have to hold onto the investments a bit longer and be prepared for additional capital calls coming in”, Vesa reminds.
The reasons why Vesasco decided to invest in Gorilla fund III
During his 30-years as a private investor Vesa has gained a wealth of knowledge and successes but also experienced disappointments along the way. The biggest disappointments have come from direct angel investments “I do understand that there are angel investors, who have been very successful, but it’s almost a full-time job as you need to have enough start-ups in the portfolio to diversify risk. And you also often have to provide something more than just money. In Vesasco we have decided not to make direct investments, only funds”, Vesa concludes.
When choosing the VC fund manager or any other alternative fund manager, Vesa focuses attention on the team and strategy. As Vesa was introduced to Gorilla Capital through his long-time acquaintance, Gorilla’s partner Kirsi Vine-Haaparinne, what first struck him was how different Gorilla Capital’s investment strategy was. “Gorilla’s portfolio angel investor approach was new to me and very different from other VC’s. But from the start the strategy made sense. It is very clear and it is very rigorously applied”, Vesa states.
Vesa finds Gorilla’s strategy very credible. Vesa believes the same as Gorilla that picking up the future unicorn among the early stage start-ups is extremely unlikely but starting from the most likely outcome increases the likelihood of success. Vesa says he was even a little surprised to hear that the median deal size for disclosed technology company exits is below €20 million. And if the starting point is that with the exits that are most likely to happen the investor gets a reasonable return, one has to invest early and in very different types of companies than those traditionally selected to VC funds. Vesa appreciates the clear screening criteria and that it is followed with discipline with no exceptions. “And then you are the only one doing this and targeting these companies in the Nordics, so you get to pick the best deals. Just as with CapMan in its early days, you currently face no competition. It’s one of the reasons for an investor to consider joining now, because you have a rather unique situation. It might not be the same in 10 years’ time”, Vesa adds.
Vesa points out that early-stage investing is often perceived as very risky, but at Gorilla Capital, diversifying into a hundred companies per fund changes this. “Usually, investing at seed or pre-seed stage is perceived as extremely risky. But looking at Gorilla Capital, I don’t see risk being any higher than investing in a buyout fund. Diversification is very high in Gorilla’s portfolio. If a typical VC-fund has 25 investments, you have 100. I don’t see a real difference in risk profile between this approach and buyout risk. That’s why I think you don’t even need to achieve 3x multiples. Of course it is great if you do”, Vesa laughs.
In selecting fund managers, Vesa feels that the team, strategy and execution in operational activities are emphasized in PE and VC funds compared to listed funds – and therefore one must identify the top-performing quartile of teams. “The team is critical in all private equity. With listed funds, the choice of manager is less critical. Every now and then one of them performs better than the index, but not for too long. But on private side you can find teams that year on year, decade over decade produce superior results. The human factor is much more significant on the private investment side.” Vesa adds that the importance of a good team can never be underestimated. And that there are different reasons for success, but the one continuous reason seems to be that success typically hinges on a core group of great people working well together. When evaluating a team Vesa focuses in particular on attitude, entrepreneurial background and discipline. “All of these elements are visible in Gorilla”, Vesa says.
Vesa sees that Gorilla differentiates from other VCs also with focus on exits and building the portfolio companies in a way that also an early exit brings good returns. “In the Gorilla strategy your exit window can be more extensive than in traditional VC because your companies are near or already cash flow positive.” Vesa concluded that this is the same as in buyout as they too can go longer and wait for the exit window. In terms of exits Vesa also sees another major diffrenece with traditional VC funds as a large part of Gorilla portfolio companies are sold at an earlier stage than when many VC investors would even enter, before the so-called second valley of death. “You take exits with reasonable multiples before the main scaling phase”, Vesa says and highlights the different game of searching the product-market-fit and proving the ‘playbook works’ versus the scaling phase with totally new problems and risks.
Vesasco invested in Gorilla fund III and summarises the reasons why he decided to invest “Gorilla surprised me – you have brought a completely new way of doing venture capital in the Nordic market. You go in the early stage, have strict pre-screening criteria, support the companies in the journey and exit before the second valley of death. You bring money, know-how and support to the development of early stage companies that typically don’t get money or help from VCs. The model itself is quite brilliant. A lot of things have to go wrong in order for it not to work. And then you face no competition”, Vesa summarises.
Vesa Vanha-Honko
CapMan’s founding partner; Responsible for CapMan’s Nordic expansion and the establishment of CapMan’s real estate investment business
Access Capital Partners; Board Member since inception until 2022, Board Member of several GP companies within Access group 2005 – 2019, Advising Partner 2011-2019
Board Professional
Private Investor
Gorilla Capital
The Nordic Institutional Super Angel
Investment strategy rooted in mathematical probability focusing on probable success and diversifying risk by investing in approximately 100 companies per fund
With two previous funds Gorilla has validated the effectiveness of the strategy in the Nordic market and achieved early DPI and multiples in line with expected returns
Currently Gorilla is raising its third fund, with the first closing in August 2023, target being 40 M, hard cap 50 M
Gorilla Capital continues to build for continuity – welcomes Ami Rubinstein
Gorilla Capital’s new venture partner Ami Rubinstein has a family business background and diverse experience from startups and corporations.
Photo of Ami Rubinstein, Venture Partner at Gorilla Capital
Gorilla Capital, the only industrial scale angel investor in the Nordic region, strengthens its team as it continues to build for continuity for its camel investing business.
Ami Rubinstein, with family consulting business background, has previously worked for global corporations as well as in international startup and growth companies as CEO and Head of Sales. Ami brings over a decade of experience in sales and customer insight, most recently from Sulapac Ltd.
“Gorilla Capital has positioned itself in a unique way that adds significant value to the Nordic angel investment and VC scene. I look forward to doing my part in providing meaningful and significant returns for our investors whilst simultaneously helping our portfolio founders make the most of their companies and cultivate new and successful serial entrepreneurs to the Nordic business ecosystem.” Ami Rubinstein explains.
“Gorilla Fund II was about making evident that the camel investment strategy, proven to work by professional US angel investors for decades, works also in Finland. It does. Gorilla Fund III aims to make the camel way of building businesses a viable alternative for the Nordic founders as well. For that we need more people to carry the Gorilla torch further to Gorilla Fund IV and beyond.” explains Risto Rautakorpi, Managing Partner of Gorilla Capital.
“The strategy itself is timeless – it works, independent of economic cycles or technological trends. But when executing the strategy, broad perspective and personal maturity are critical assets. Ami’s versatile experience so far has given him very applicable expertise. Also his skills in sales & customer insight will be particularly valuable in supporting our founders.,” concludes Rautakorpi.
Gorilla Capital is the Nordic institutional angel investor. Gorilla’s investment strategy is based on assuming the most probable outcome, rather than the outlier. Distinctive in that approach is how the journey with a startup is started – passionately yet realistically. This is what they characterize as investing in so-called camel companies.
As an investor, Gorilla Capital strives for market returns with lower risk by investing in approximately a hundred companies from their third fund. The company strives to contribute to a thriving and sustainable startup ecosystem, where the capital and know- how invested into it are returned to circulation with interest in the form of exits and serial entrepreneurs.
Gorilla Capital, the Nordic industrial angel, expands its team and launches third fund.
Kirsi Vine-Haaparinne and Minna Isotalus, both with entrepreneurial backgrounds, join Gorilla Capital as partners.
Gorilla Capital’s new partner Vine-Haaparinne is a founding partner of Taaleri, while Isotalus has a background in startups and growth companies.
Gorilla Capital, the only industrial angel in the Nordic region, strengthens its team with the addition of two new members as it unveils its third fund. Kirsi Vine-Haaparinne and Minna Isotalus, both with entrepreneurial & investment backgrounds, have joined the company as partners.
Kirsi Vine-Haaparinne, a founding partner of Taaleri with a family business background, has worked as a private banker for over 15 years, and, in recent years, also served as an angel investor alongside her day job.
Meanwhile, Minna Isotalus brings over a decade of experience in startup entrepreneurship and growth companies backed with years in corporate finance.
“I’m passionate about entrepreneurship and ownership, and I’m eager to give back - share my experience and provide funding to entrepreneurs. Gorilla Capital’s team shares this same passion and goal. The company’s approach to early-stage startup investing resonates with me – it provides a solution to the question that has bothered me: why startup investing often seems so unpredictable and risky?,” Kirsi Vine-Haaparinne explains.
Gorilla Capital’s investment strategy is based on analyses of the most probable outcomes, avoiding the unicorn chase in favour of broader diversification. Gorilla Capital plans to allocate €50 million to a hundred early-stage companies from its third fund. It seeks several mid-sized exits without limiting the possibility of jackpots. The approach relies on starting the startup journey with a realistic, yet ambitious outlook while maintaining a fervent passion and aiming high.
“Gorilla Capital’s investment strategy is refreshingly different – I feel it promotes equal opportunities in entrepreneurship. It extends financing and professional support to ambitious entrepreneurs who favour a rational approach to risk, without the desire to position themselves as the next unicorn. The passionate yet down-to-earth approach of Gorilla Capital’s founders, Petri Lehmuskoski and Risto Rautakorpi, and their respect for founders, resonated with my thinking,” summarizes Minna Isotalus.
Gorilla Capital invests in so-called camel companies. The term ‘camel’ characterizes the way the portfolio companies make their journey successfully: they use water efficiently, navigate steadily through diverse terrains and quickly adapt to changing conditions – and have a remarkable ability to successfully reach their destinations.”
“Minna and Kirsi complement our team with their expertise and personalities. Their diverse backgrounds and extensive experience support the expansion of our successful investment strategy. Our goal is to create a community within the Nordic startup ecosystem for those seeking an alternative route to success as startup entrepreneurs. Instead of chasing unicorns, we believe in camels,” concludes Risto Rautakorpi, Managing Partner of Gorilla Capital.
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Gorilla Capital is the Nordic industrial angel. Company’s investment strategy is based on an analysis of the most probable outcomes. Distinctive in their approach is how they begin the journey with a startup – passionately yet realistically. This is what they characterize as investing in so-called camel companies.
As an investor, Gorilla Capital strives for market returns with lower risk by investing in approximately a hundred companies from their third fund. The company strives to contribute to a thriving and sustainable startup ecosystem, where the capital and know-how invested into it are returned to circulation with interest in the form of exits and serial entrepreneurs.
Gorilla Fund I portfolio company AutoVex has been acquired by Schibsted!
22.12.2022
Schibsted has today entered into binding agreements to acquire 79% of AutoVex.
“AutoVex’s mission is to create the most effective way to buy and sell used cars online, whilst providing the best possible user experience for both consumers and car dealers. Schibsted and AutoVex share a vision for next generation marketplaces and by combining forces, we’re able to further accelerate our growth and market position.” says Sebastian Frick, Founder of AutoVex.
Schibsted has several leading brands in the Motor vertical across the Nordics, including FINN, Nettbil, Carweb and Honk in Norway, Bilbasen and DBA in Denmark and Blocket and Bytbil in Sweden. 🚘
Gorilla Fund I starts generating carried interest following Duunitori exit
Duunitori Oy, the market leader in job search, has been acquired by the private equity firm Intera Partners. Duunitori is making recruiting and job search smarter and is a thought leader in digitalising them both.
Gorilla Fund I invested in Duunitori, then named Skyhood, in 2015. At the time, the company consisted of 5 people and revenue was in the low six figures – since then, it has doubled and redoubled time and again, reaching 14 million euros in 2021.
As a result of this highly succesful exit, Gorilla Fund I has already returned 2x the original capital, cash on cash, and there are many good companies remaining in the portfolio. Duunitori also became the largest exit among numerous positive ones in Gorilla Capital’s operating history, measured by the company’s exit value. It yielded a substantial return of 70x the initial investment.
”Duunitori is a perfect example of the often overlooked type of a startup – the “camel” (which we love) that focuses on building sustainable business rather than raising maximum amounts of capital to make risky bets. We are very proud of having been part of the Duunitori journey for 7 years. Their success is no coincidence”, says Risto Rautakorpi, Managing Partner at Gorilla Capital.
Strategy Uniqueness
