The combined turnover of all Aalto Startup Center startup accelerator programme alumni in 2017 has been calculated at EUR 490 million, the results of a recent study reveal. Pertti Kiuru was presenting the findings of the 14-year study at the Aalto Startup Center Demo Day event on 5 March. High-profile businesses that have previously attended the Aalto Startup Center programmeinclude Rovio, Futurice and Duunitori.
Aalto Startup Center alumni are also more likely than their peers to achieve hypergrowth. According to the Startup Center study, in 2017, 20% of all alumni were recording high growth. This contrasts with the sector average, which most studies estimate at around 5%.
“At Aalto Startup Center, we’re really proud of our Business Generator service model that provides startups with access to cross-disciplinary tools and training opportunities, and also links them up with a wide network of international funding opportunities. So far, we’ve worked with almost 600 businessesthat are now promoting their innovations on the global market,” said Marika Paakkala, Head of Aalto Startup Center.
Exceptional number of alumni businessesthriving after critical first few years
Aalto Startup Center alumni have been shown to be particularly resilient, with 90% of the 2014 cohort still trading at the start of 2019 and 81% still trading after a decade. At the end of 2018, 80% of all Aalto Startup Center alumni businesses were still up and running. According to figures from Statistics Finland, half of all Finnish businesses cease trading within five years.
“Startup Center is an opportunity for fledgling businesses to focus on generating strong growth but also to tackle the challenges that growth can bring. The teams driving these businesses need to do their groundwork properly and make sure their businesses are well managed and run, as that’s the only way to ensure that they remain sustainable and can continue to generate jobs for years to come,” Paakkala adds.
About the study
The study was conducted by Aalto Startup Center and comprised all available data on the programme participants from 2003 until 2017. In 2003, annual financial statements were submitted by 33 alumni businesses showing an average turnover of EUR 255,000. In 2017, annual financial statements were submitted by 328 alumni businesses, with an average turnover of EUR 1.5 million, totalling EUR 490 million. During the period in review, the participants achieved an average growth rate of 42%.
Aalto Startup Center – From Ideas to Impact
Aalto Startup Center has been offering accelerator programmes to startups for more than 20 years. The accelerator programme draws on the cross-disciplinary expertise offered by Aalto University on design, business and technology, and it also has access to a network of six universities. The purpose of Startup Center is to drive new business activity, and it works with both external startups and new businesses set up as part of Aalto University’s commercial research projects. Aalto Startup Center is currently working with some 40 businesses,10 of which are involved with the European Space Agency’s Business Incubation Service Finland, which forms part of Aalto Startup Center. Aalto Startup Center is based at the Aalto University A Grid in Otaniemi, Espoo, Finland.
Find out more: www.startupcenter.aalto.fi
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For further information and interview requests and media resources:
Milla Kalliokoski, Marketing Communications, Aalto Startup Center
+358 329 8554, milla.kalliokoski@aalto.fi
