NewCo Helsinki

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NewCo Helsinki is an entrepreneur support service center run by the municipal government of Helsinki.
What are the main aims and objectives?

NewCo Helsinki's primary aims and objectives are centered around fostering entrepreneurship and supporting business growth in the Helsinki area. The organization strives to increase the number of businesses in Helsinki and transform the city into a hub for international business activity. NewCo Helsinki focuses on accelerating the development of potential growth companies, both in terms of their business operations and staff expansion. A key objective is to assist these growth-oriented companies in expanding into international markets at an early stage, thereby enhancing Helsinki's global economic presence. The organization also aims to attract and support international startup teams in establishing their businesses in Helsinki, contributing to the city's diverse entrepreneurial ecosystem. Through its accelerator program, NewCo Helsinki seeks to provide intensive business coaching, help startups find their product-market fit, validate their business models, and prepare them for funding rounds. 

How does the program work?

NewCo Helsinki operates as a multifaceted support system for entrepreneurs and startups in the Helsinki region. It functions as a hub for entrepreneurship, offering a range of free services designed to nurture business growth and innovation. The organization's work revolves around several key areas:

Firstly, NewCo Helsinki provides free business advisory services. This includes personalized coaching from experienced mentors who assist entrepreneurs with various aspects of business development, such as team building, growth strategies, and financial planning. These services are tailored to support businesses at different stages, from initial idea conception to market entry and expansion phases.

Secondly, the organization runs the NewCo Helsinki Accelerator program, which is specifically designed for startups with global ambitions. This program focuses on helping companies scale their businesses internationally, offering tailored growth schemes and immediate problem-solving support. Startups can reach out to NewCo Helsinki's team for assistance in managing global business challenges.

NewCo Helsinki also plays a crucial role in facilitating access to funding. They assist startups in applying for grants and connecting with potential investors. For instance, Helsinki-based startups can apply for a travel grant from the City of Helsinki, covering up to 70% of travel costs (maximum €2,500) to support their international expansion efforts.

Furthermore, NewCo Helsinki acts as a central node in Helsinki's startup ecosystem. They collaborate with various actors, including investors, incubators, accelerators, higher education institutes, and universities. This network is leveraged through platforms like the Helsinki Dealroom, which brings together over 2,000 startups and ecosystem players, enhancing visibility and creating growth opportunities for participating companies.

The organization also offers 'soft landing' services, making it easier for international startups to enter the Finnish market. This includes assistance with finding locations, connecting with Finnish partner companies, and navigating the local business environment.

Lastly, NewCo Helsinki organizes numerous events and programs throughout the year. These serve as platforms for networking, knowledge sharing, and fostering collaboration within the startup community.

What is the overall cost?

There is no available information about the cost of running NewCo Helsinki.

How was it implemented?

NewCo Helsinki was established by the City of Helsinki in 2014 however, the organization's roots can be traced back to 1992 when its predecessor was founded.

Timeline

NewCo Helsinki began its operations in 1992, and the marketing name NewCo Helsinki was introduced in 2014.

What impact has been measured?

In its first year of operation, NewCo Helsinki achieved impressive results, supporting 32 startups, attracting 5 foreign startups to Helsinki, and helping startups raise over €1.7 million in early-stage funding.

What lessons can be learned?
  1. The importance of public-private collaboration: NewCo Helsinki is a joint initiative between the City of Helsinki and EnterpriseHelsinki, demonstrating the value of public and private sector entities working together to support entrepreneurship and startup growth.
  2. Fostering a vibrant startup ecosystem: By acting as a central hub and collaborating with various ecosystem players, NewCo Helsinki has helped strengthen the startup community in Helsinki, creating networking and growth opportunities.
  3. Attracting international talent and investment: NewCo Helsinki's efforts to attract foreign startups to establish their businesses in Helsinki showcase the importance of creating a welcoming environment for global entrepreneurial talent.
  4. Focusing on scalable, globally-oriented startups: The NewCo Helsinki Accelerator program's emphasis on supporting startups with global ambitions can be a valuable approach to drive economic impact and innovation.
  5. Leveraging public funding to catalyze private investment: NewCo Helsinki's assistance in helping startups access grants and connect with investors can be a model for using public resources to mobilize private capital.
Notes + Additional Context

The Helsinki's startup ecosystem has seen remarkable development in recent years:

  • The value of Helsinki's startup ecosystem has tripled since 2015, exceeding EUR 25 billion3.
  • The average annual growth rate of investments in startups has been 32% over the last five years3.
  • In 2020, startup funding reached EUR 916 million, a 57% increase from the previous year

About ecosystem coordination:

Many cities are actively facilitating or federating their ecosystem by creating bodies that link the activities of the organisations concerned – such as universities, funding bodies, incubators, accelerators, coworking spaces, service providers (like legal, financial services etc.) and large corporations. This helps the city to take a structured and longterm approach to developing entrepreneurship. Such bodies can also help investors, customers and other partners to navigate the seemingly-chaotic and rapidly-changing startup environment of a city.

Read more about ecosystem coordination in Nesta's ‘Idea Bank’ for Local Policymakers):

CURATED BY

Siddharth Bannerjee

Researcher, Digital Startups
Nesta
United Kingdom