Launched in 2019, it aims to create fundable spin-off companies based on innovative technologies developed by VTT researchers.

A strong history

VTT has a rich history that dates back to its establishment in 1942. Originally founded as the Technical Research Institute of Finland, VTT was created to support Finland's industrialisation efforts during World War II. Its primary role was to conduct research and development in various fields of technology to aid in national reconstruction and economic growth.

In the post-war years, VTT expanded its scope significantly, evolving into a multidisciplinary research organisation. By the 1950s and 1960s, it was instrumental in advancing Finland's technology sectors, including electronics, telecommunications, and materials science.

In recent decades, VTT has focused on sustainable development, digitalisation, and emerging technologies like quantum computing, artificial intelligence, and bio-based materials. The organisation has also expanded its international reach, collaborating with global partners and contributing to European and global research initiatives.

Today, VTT is recognised as one of the leading research institutions in Europe, known for its innovation-driven approach that combines scientific research with practical applications. Its work spans a wide range of industries, including energy, healthcare, transportation, and the built environment.

Throughout its history, VTT has maintained a mission to drive technological advancement and support Finland's competitiveness on the global stage, adapting to new challenges and opportunities in science and technology.

“I believe that we should be always looking to improve existing solutions and introduce new solutions that revolutionise industry,” said Lotta Partanen, Head of Incubation and Acceleration, VTT LaunchPad.

And that is the ethos behind the VTT LaunchPad programme.

Transforming research into a viable business

Many of the most significant Finnish technology startups were brought to life at VTT.

To qualify for the LaunchPad, a business idea must meet specific criteria: it must be based on VTT's intellectual property (IPR), show market potential, be scalable, and have a demonstrated technology base. Additionally, the team behind the idea should be capable of evolving it into a fundable venture.

“The overall objective is to create the impact of change in society and industry by spinning off companies that are really high quality, well fundable, and developed on the technology that we develop,” noted Partanen.

The LaunchPad offers various benefits, including access to mentoring, investor networks, and comprehensive business development support. The programme is designed to help these spin-offs succeed in global markets by connecting them with investors and corporate partner who can assist with product development and early-stage customer acquisition.

“Our programme is built around monthly coaching, where we sit down with the team and we review the current status of spin-off development, together with the research area, so that we really understand how to help them best. And then, based on this, we try to understand how we could give them support,” said Partanen.

Spin-off success

This new way of working and supporting spin-off teams has proven its effectiveness. In 2024, the Financial Times added the VTT LaunchPad to its list of leading startup hubs in Europe.

“What sets us apart, I think, is that our technology transfer terms are pro-growth company. We have very competitive terms – we're not giving things for free, but our terms are such that they create the foundation for great growth companies,” noted Partanen.

Speaking of great growth companies, here are three spin-off companies that Partanen highlighted as being particularly noteworthy:

Steady Energy

Steady Energy is a Finnish startup focused on developing innovative nuclear technology for clean energy production. The company is working on a novel type of nuclear reactor known as the LDR-50 (Low-Temperature District Heating Reactor), which is designed to provide a safe and sustainable source of district heating.

Steady Energy aims to address the challenges of climate change by providing an efficient, low-carbon alternative to fossil fuels for heating.

The company’s technology is seen as a potential game-changer for urban energy systems, especially in regions with cold climates where heating demand is high.

The startup has attracted attention for its focus on safety, sustainability, and the ability to integrate into existing district heating networks.

Onego Bio

Onego Bio is a Finnish biotechnology startup focused on developing sustainable and animal-free egg protein. The company uses precision fermentation technology to produce ovalbumin, the main protein found in egg whites, without the need for chickens. This approach allows for the production of egg proteins with a significantly lower environmental impact compared to traditional egg farming.

The startup has garnered attention for its potential to revolutionise the egg industry by providing a more sustainable and ethical alternative to traditional egg production. This innovation could reduce the environmental burden associated with egg farming, including the high levels of water use, land use, and greenhouse gas emissions.

Enifer

Enifer is transforming circular economy by-products into planet friendly protein. It was founded by five scientists in 2020 to develop and commercialise the proprietary PEKILO technology further. A process originally developed and used by the Finnish forest industry at a commercial scale, the PEKILO technology enables the biotechnological conversion of dilute side streams into a high-protein ingredient, PEKILO mycoprotein.

Enifer already has ongoing partnerships with big global companies in the feed and food industries, such as Skretting, the global aquafeed division of Nutreco, Purina for pet food, and Valio for consumer food products.

By bridging the gap between research and industry, VTT Launchpad plays a crucial role in nurturing Finland's innovation ecosystem, helping to bring cutting-edge technologies to market and driving economic growth through the creation of new, high-tech companies.

This article originally appeared in the September/October 2024 issue of Startups Magazine. Click here to subscribe