[zeemonkee]

Unfortunately this is all too typical of the tech scene in Finland. While there have been a few breakout successes (Rovio, F-Secure for example) and the tech talent in Finland is generally top-notch, much of the scene is dominated by a tight-knit old-boys network in the boardroom, unions and government.

See here for example:

http://www.arcticstartup.com/2011/03/03/making-growth-entrep...

http://www.arcticstartup.com/2012/04/03/the-best-april-fools...

Who do we have ? Jorma Ollila (again) - the arrogant twit who drove Nokia into the ground long before Elop took over. Siilasmaa, another face from Nokia. The same people involved in the Fruugo fiasco. Taxpayer money funneled through Tekes to support no-hope startups run by people who know the right people. Silly little committees - again taxpayer funded - to discuss the "future of IT in Finland" with nary a nod toward the genuinely successful startups.

The tech scene here is anemic, incestuous and poorly managed, propped up by taxpayer money through layers of government bureaucracy. Which is a shame because the tech talent is excellent. What's really needed is a more startup-friendly environment - a reduction in bureacracy, taxation reform, and a more small-business-friendly culture - but these are "hard" problems. Let's just have yet another worthless "steering group" and appoint the same guys we drink beer with in the sauna.

[hammock]

Every time I see something like this, I wonder- who made out with that money? Forget the commentary about why the startup idea was bust, why the website UX sucks, etc. Who made out like a bandit with $40MM in return for nothing? Whoever that is, this was a GREAT deal from their point of view.

P.S. Not surprising that government involvement plays a part in this. Sounds akin to Solyndra et al. here in the states.

[bergie]

Much of this comes from two unfortunate facts: Finland is far from any real markets (becoming less important thanks to the net), and there isn't much capital in the country outside of the public sector.

The latter means that the government has to be involved. Bringing in their heavy processes, risk (and therefore, succeess) aversion, and the old boys' network.

[zeemonkee]

What do you think is the best solution to the lack of capital? More Europe-wide VC funding (and networking) perhaps, so we're not so reliant on local funding?

[bergie]

I would stay stop dancing with Tekes (state R&D funding org), and take a flight to Stockholm, Frankfurt, Paris, or London. Capitalize on successes like Rovio and emphasize that in Finland there is lots of mobile dev talent available thanks to MeeGo and Symbian getting ramped down.

[Roritharr]

I live in Frankfurt, it's hard to get venture capital here, fly to Berlin instead.