10 YEARS
OF FUNDING AND
NETWORKS
FOR THE FINNISH
GAME INDUSTRY
in the game 2004–2014
Long-term risk sharing public funding
TEKES FUNDING
to the Finnish Game Industry 2004–2014
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
€ Million
5,5
8,4
14,1
8,6
6,5
6,3
5
6
2,7
3
0,9
TO TA L FUNDING
2004 –2014
¢ During Tekes’ game industry
specific programme, Skene – Games
Refueled (2012–2015), Tekes has
Million
funded the Finnish game industry with
28 million euros (53 million euros with
companies’ own share included).
The total amount of private investments to Finnish game
companies during Skene is 53 million euros (excluding the
Supercell Gungho Softbank acquisition). In most cases
these investments would not have been possible without
Tekes funding’s leverage. The total value of financial
transactions in 2012–2014 is 1.5 billion euros.
€67
Only for the best
COMPANIES RECEIVING
Tekes Funding 2004–2014
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Number
25
43
33
23
23
21
19
26
16
12
10
¢ The number of
companies in the
Finnish game industry
has grown from appr.
40 companies in 2004
to 260 companies in
the end of 2014. Over
50 companies have
received funding from
Tekes’ Skene – Games
Refueled programme
in 2012–2014. This equals
appr. 20% of the total
number of companies.
Astronomical growth
TURNOVER
of the Finnish Game Industry 2004–2014
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
€ Million
1800
900
250
165
105
87
87
78
70
65
40
TURNOVER
2004 –2014
€364n7
Millio
¢ In comparison, the turnover of the Finnish ICT
industry was 8.3 billion euros in 2013. In that year,
the Finnish game industry represented 10% of the
turnover of the ICT industry. This share will very likely
grow to almost 20% in 2014. From the point of view
of national economy, the game industry has grown
to be a significant part of the Finnish industrial
landscape.
Big impact with carefully targeted funding
Hi-tech industry
Percentage of the Finnish Game Industry Turnover 2004–2014
in the Finnish Game Industry 2004–2014
TEKES SUPPORT
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Percentage
0,31
0,93
5,68
5,21
6,19
7,24
5,75
7,69
3,86
4,62
2,25
PERCEN TAGE
2004 –2014
1,84%
¢ Due to the rapid growth
of the Finnish game
industry, the relative share
of Tekes support has
decreased in 2004–2014.
EMPLOYEES
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Number
2500
2200
1800
1250
1080
1120
1150
1100
1000
900
600
¢ The relative turnover
(turnover per employee)
of the Finnish game
industry has grown
much faster than in
traditional industries.
This is typical for born
global IP-based hi-tech
industry.
Artwork: Remedy / Juggernaut • Supercell / Clash of Clans
• Rovio / Angry Birds • Supercell / Hay Day • Seriously / Best
Fiends • Colossal Order / Cities: Skylines • Housemarque
/ Alienation • Supercell / Boombeach • Rovio / Angry
Birds Stella • Cornfox & Bros. / Oceanhorn • Next Games /
Compass Point: West • Grand Cru / Supernauts
TEKES Q&A
SKENE FACTS
n 28 million euros funding from Tekes’ Skene – Games
Refueled programme to boost the game development
business of the most promising Finnish game
companies in 2012–2015
IS TEKES FUNDING FOR GAME
COMPANIES A GOOD THING FOR
FINLAND?
Relatively small public investments have
boosted Finnish game companies to
create a billion euro hi-tech industry
that is global by nature and cannot be
easily copied nor moved away. This
makes Finland an attractive location for
private investments and foreign game
companies.
Tekes funding improves a company’s
core competencies through R&D
and hence makes the company more
enticing to a foreign investor during
start-up and growth phases. And also
attracts global game companies like EA,
Ubisoft and Unity to establish foothold
in Finland.
WHAT DID WE GET?
n 53 million euros private investor money for
Finnish game companies in 2012–2015
n Game industry with turnover of over
1.8 billion euros in 2015 (250 million euros in 2012)
n Over 260 game companies with 2 500 employees
n Major global game giants like EA, Ubisoft and
Unity present in Finland
Check out Skene, www.tekes.fi/skene
COMPANIES BOOSTED
BY SKENE FUNDING AND NETWORKS
u FROZENBYTE
TEKES’ SKENE PROGRAMME
ACCELERATING THE FINNISH
GAME INDUSTRY GROWTH
2012–2015
u TUNNEL GROUND
Game engine development with
big impact
Skene funded Frozenbyte’s game engine
development (incl. e.g. improvement
of graphics, animation, sound and
multiplayer technology) with which the
company created the already seven
million selling Trine series. In addition to
R&D, Skene funding made possible the
shipping of Trine 2 for PlayStation 4 and
Nintendo Wii U.
Finnish multimedia company
combines a new games and comics IP
Skene funding enabled Tunnel Ground
to develop technology platform for
sharing games on mobile devices
and smart televisions. Skene’s most
important contribution was to network
the company with veterans of the
gaming industry and build valuable
contacts.
u SMALL GIANT GAMES
Development tool and concept
improvement for mobile games
With Skene funding the industry veteran
founded Small Giant Games developed
their game engine, level design tools,
multiplayer and game concept. Skene
provided advice as well for game
business development.
Virtual reality games for Oculus Rift
With Skene funding Mindfield Games
has investigated the Oculus Rift
platform thoroughly for advantages
and disadvantages in terms of game
development. The funding helped the
company to remove motion sickness that
is typical for virtual reality games, from
their forthcoming debut title.
u EVERYWEAR GAMES
u RIVAL GAMES
Games for smart watches
Everywear Games developed technology
for Apple’s smart watch platform with
Skene funding. The funding enabled
the company to create a new game for
a new platform from scratch in less than
six months.
u CUCKOO WORKOUT
u MINDFIELD GAMES
Episode-based games with good
storyline
Rival Games made the first episode of
their game with Skene funding. A game
based on a well-known comic strip is
on its way too. The funding helped to
seal the forthcoming game partnership
and enabled the creation of tools and
future working methods. As well, Skene
funding was of the greatest benefit in
building an expert team.
Wellbeing game encourages office
workers to move their asses
Skene funding helped Cuckoo Workout
Check out Skene, www.tekes.fi/skene
to add traditional gaming elements to
their wellbeing game. Skene cooperation
also enabled the company to hire a
developer and to chart the US market.
WHY DOES TEKES FUND FINNISH
GAME COMPANIES?
Global game industry is a hundred
billion dollar business and Finland has
lots of skilled game companies that
can benefit the Finnish economy. Tekes
funding is always a Finnish tax payer’s
R&D investment into a Finnish game
company that grows rapidly into global
markets.
Tekes expects to see long-term
results in game business development
as whole rather than sales figures of one
or two games developed.
years with 67 million euros. Depending
on how one calculates it, every euro
invested by a Finnish tax payer through
Tekes has generated nine to 26 euros to
the Finnish economy e.g. via tax income.
For instance Supercell and its founders
paid 260 million euros taxes in Finland
during 2013. This is four times more
than Tekes funding for Finnish game
companies in 2004–2014.
In 2012 Tekes launched programme
dedicated to the Finnish game industry,
Skene – Games Refueled. Through
Skene, Tekes has funded Finnish game
companies with 28 million euros during
2012–2015. Besides funding, Skene
has provided networking and pitching
events and market surveys.
In most of the cases Tekes funding
has been used as leverage for private
investments. Major part of the private
investor funding has come to Finland
from abroad. In 2014 alone the amount
of received private investor money
exceeded 30 million euros. Almost all
of the companies that received private
investments also were funded by Tekes.
The total amount of these private
investments during Skene programme’s
period has been 53 million euros
(excluding Supercell Gungho Softbank
acquisition). The total value of the
financial transactions in 2012–2014 is
1.5 billion euros.
HOW DOES TEKES SELECT THE
FUNDED GAME COMPANIES AND
WHAT IS THE TYPE OF FUNDING?
Tekes evaluates each funding
application. Only the most promising
game companies get funding. The
factors that Tekes takes into account in
the evaluation process are know-how,
team skills, the game or innovation to
be developed and business potential.
Appr. 20% of the existing Finnish game
companies (2014) have received Tekes
funding at some point of their life-span.
Tekes funds companies’ R&D projects
and usually covers half of the project
costs. Thus a company’s share is
typically 50% of the project costs.
Tekes funding is either loan or grant.
Tekes funding with private investor
money forms an attractive financial
combination.
More than 70% of the game
companies that have received Tekes
funding are rapid growth seeking startups.
HOW MUCH HAS TEKES FUNDED
GAME COMPANIES AND WHAT IS
THE IMPACT OF THAT FUNDING FOR
THE FINNISH ECONOMY?
Tekes has funded Finnish game
companies systematically appr. 15
Artwork:
• Frozenbyte / Trine 2
• EveryWear Games / Runeblade
• Rival Games / The Detail
• Cuckoo Workout
• Small Giant Games / Oddwings Escape