The venture capital fund North Karelia Growth Fund established in the spring is about to receive a total of over EUR 1 million of new capital. Pohjois-Karjalan Osuuskauppa PKO and Broman Group Oy with its owner families are both investing half a million euros in the fund. The third new investor is Rakennustoimisto K. Tervo Oy.

Major players in the region think it is important to support start-ups and growth companies. They believe in North Karelia’s growth. Broman Group Oy with its owners and Pohjois-Karjalan Osuuskauppa PKO both invested EUR 500,000 in the fund.

– We are about to invest in North Karelia Growth Fund because we want to be involved in enabling and developing new business and creating new employment and jobs in the North Karelia region. Our most important motive is regional responsibility, says Harri Broman, Chairman of the Board of Directors at Broman Group Oy.

– This is how we contribute to strengthening the future of our region and making it more vibrant. There is a lot of activity taking place here, Broman continues.

The basic task of Pohjois-Karjalan Osuuskauppa PKO is to provide services and benefits to its owners. Its common goal with the North Karelia Growth Fund is to bring fresh impetus to business activities in the region.

– We want to contribute to the common good. Through the fund, we attract new companies and entrepreneurs to the region from outside North Karelia. I believe that the fund will help venturesome operators and give rise to new openings that will benefit the entire region, says Juha Kivelä, Managing Director of PKO.

Regional vitality is essential

The development and vitality of the region have also been the driving force behind the long-term construction company Rakennustoimisto K. Tervo Oy’s decision to invest in the fund.

– We are not looking for great returns, but the most important thing is the positive effect on the region. Our view is that this type of funding is intended to help companies in our region that need support right now in order to overcome a certain stage in their growth. In the future, these companies may become large operators that maintain and promote the vitality of our region, says Jussi Hämäläinen, Managing Director of Rakennustoimisto K. Tervo Oy.

– In the future, it is important to ensure such operating conditions for companies in the region that they decide to always stay here.

On Tuesday, Business Joensuu shared news about the new investment of another regional capital venture fund already in operation, The StartUp Development Joensuu – Investment Fund, which invested in Fiuge Oy from Kontiolahti.

– There is an obvious need for regional capital funds. Our fund, the StartUp Development Joensuu – Investment Fund, has already invested in four companies, and we are continuously considering possible new recipients, says Harri Palviainen, CEO of Business Joensuu.

The objective is to use the North Karelian Growth Fund to provide funding to 15–25 companies. The intention is to focus the fund’s investment activities on young people seeking strong growth and internationalisation as well as start-up companies and seed stage companies that are linked to the North Karelian economy. The City of Joensuu and the Centre for Economic Development, Transport and the Environment are together investing around EUR 3.5 million in the EUR 6 million fund. The fund is managed by the international Redstone Nordics, which has extensive experience and expertise in the development of funds and investment options.

More information:

Harri Palviainen, Chief Executive Officer, Business Joensuu Oy, tel. +358 500 96 7744