Finland Banks on Venture Capital Financing for Growth

By Marc Castro

Apr 05, 2013 07:09 PM EDT

Finland is maximizing venture capital financing as a means to spark the economy out of the doldrums without affecting its current AAA ratings. The country is seeking to attract investments for its new Eur1 billion program to help start up companies without affecting its current budget deficit.

The government, should it be taken up by the individual investors, promises to investors that the lion's share of profits is theirs for the taking. Another possible market would be companies seeking to grow and expand.

According to Petri Peltonen, the Head of the Enterprise and Innovation Department at the Finnish Economy Ministry, "The debt crisis caused investors to retrench from this riskier start up funding. We're now trying to attract private investors to take more risk that will help boost economic growth and create jobs."

The current government led by Prime Minister Jyrki Katainen  that its priority to retain the country's top credit rating and minimizing growth of debt by 2015.

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