Vision+ is a new royalty-based fund set up in Finland that is looking to invest in applications, games, and services on all digital platforms. The model is different from the average VC fund. Rather than taking equity, investor return consists of royalties of the product’s cash flow, offering the benefit of not diluting existing shareholders’ equity. Currently Vision+ has raised €26 million, but aims for a €100 million fund.
On their about page they write “Real value in business is in the cash flow generated by successful products, and long term value is built on customers who are willing to pay for products and services.”
Because the fund sees a return on a startup’s royalties immediately, their motivations are slightly different from the average VC. Investments will mostly be targeted into products and generating cash flow, and Vision+ will help product owner in marketing and branding.
Investors in the fund include: Microsoft, Sitra, Nokia, Industry Investment, Kasvurahastojen rahasto, and partners Tero Ojanperä, Jari Tuovinen, Marko Tulonen, Tanu-Matti Tuominen