Risto Siilasmaa, the F-Secure Chairman and Founder, one of the most well known private investors in Finland, has stated in a recent event that direct Finnish government investments to startups should be stopped. By this he means that the way they are currently done, should be stopped and we should leverage the wisdom in the market to make smarter investment decisions. His basic statement was that Finland has created the Vigo accelerator program which is full of serial entrepreneurs and the government investment funds should beinvested through these entities. He states that Finland should look towards Singapore and Israel, where the government leverages all private investments with certain restrictions.
Siilasmaa is also the chairman of the Vigo accelerator program steering group. But no matter how you look at it, Finland should move towards a model, where tax payers’ money is invested more wisely – through signals in the market place. He also stated that to make this equation work, private investors should have the possibility to buy out government investments – just as it’s possible in Singapore or Israel.
The thinking behind this rationale is very simple; serial entrepreneurs are more effective with tax payers’ money as they have a business to run. Finnish tax payers should also look at it in a way that the government would essentially create a fund that leverages the wisdom of the serial entrepreneurs without having to make the investment decisions themselves. Essentially, the fund could make money in the long term without any investors in its payroll (to over simplify a little). How good would that be?