A startup accelerator ecosystem seamlessly facilitating all phases of growth

This article series presents cases of innovations built here in Espoo that strive for a better tomorrow for all.

In Espoo, there are a variety of top-class accelerators, communities, places, and players to help start-ups and companies along their growth path. The path from research to spin off and commercialization is facilitated by an entire ecosystem. An example of a company emerging from the ecosystem is ICEYE presented at the start of this criterion.

The strength of Espoo's ecosystem is in the deep tech sector. Important areas include microelectronics, semiconductors, 5G, sensors, quantum computing, and sustainable products and materials. The largest applied research organization in the Nordic region, VTT Technical Research Centre of Finland, is one of the main contributors along with Aalto University. Many of Finland's deep tech startups have been produced by VTT and Aalto University or by a collaboration between the two.

The city has had four key roles in the making of the miracle: 1) to co-finance and upstream the student-run ecosystem together with Aalto University at the early stage of the ecosystem, before it became profitable and when it needed its first push, 2) to continue financially supporting the non-profit actions of the student-run organizations, such as events of Aaltoes, Kiuas Accelarator and Deep Tech Factory, 3) to connect and enable the ecosystem in an agile and receptive way – to be there for the start-ups and scale-ups, and 4) to connect startups to investors and corporations via the Enter Espoo services.

Enter Espoo is the city marketing company owned by City of Espoo and it provides an entry-point for companies, investors, visitors, and travel professionals visiting Espoo, connecting them with services, startups, technologies, reliable partners and locations that support their business goals. Their services include, for example, landing and growth services, innovation search, ecosystem visits, convention bureau, marketing collaboration, and Espoo in Dealroom.

Early stage: Start-ups have access to Aalto University's resources, talent, and world-class research and infrastructure through Aalto’s A Grid start-up hub. The start-up early-stage accelerator Kiuas founded by Aalto Students gives spark to ideas that burst into new business: since 2013 Kiuas has worked with over 600 founders, and the collective alumni pool has raised over 300MEUR in funding. Sampo Accelerator welcomes foreign founders to the ecosystem and helps to scale their business. 

Growth phase: Companies can join Aalto Start-up Center, ranked among the world's top three university business accelerators. In 2022, the turnover of companies starting from Aalto Startup Center increased by an average of 12 per cent and the adjusted number of employees by 13 per cent. Their alumni network is 900 companies strong. At the Innovation Home startup hub, companies can grow their business in a community of some of the most successful, likeminded entrepreneurs in Finland.  

As their business grows: Start-ups can join the growth support program EIT Digital Accelerator and find office spaces in the heart of Espoo's innovation ecosystem. Through participating, companies can scale their business with the help of, for example, European Institute of Innovation and Technology's initiatives: EIT Urban Mobility, EIT InnoEnergy, EIT Climate-KIC, and EIT RawMaterials. A Grid is a startup community is also a fantastic place for a startup to grow their business, and one of Northern Europe’s largest centers for growth companies. It is home to nearly 150 startups, accelerators, such as the European Space Agency and Aalto Startup Center, as well as partners and established companies, like City of Espoo’s business services. The hub also serves as a vibrant space for entrepreneurial expertise, services and events. As part of the Aalto University campus A Grid works as a gateway to the university’s international network of resources,talented students and cutting-edge research and infrastructure. 

For example, the Ignite summer program by Aalto Entrepreneurship Society generates €175 million annually in revenue from startups established during or after the program. Similarly, ESA BIC Finland (the European Space Agency's Business Incubation Centre in Finland) has generated space industry startups that have accumulated over €100 million in funding from 2018 to 2023.

Additionally, some ecosystem highlights:

Business Espoo: A service network, formed by seven public business service organizations and coordinated by the city, aims to provide businesses with the best services at one physical and digital location, serving 18,000 customers yearly.

Aalto Ventures Program: Helping the Aalto community create a sustainable future through entrepreneurship, the Aalto Ventures Program is participated by approximately 2000 students annually.

VTT Launchpad: Recognized by The Financial Times in 2024 as one of the 125 leading European startup hubs out of about 2,000 applicants.

Knights of Nordics: An invite-only startup-investor matchmaking event organized by Enter Espoo bringing global investors to Espoo and Helsinki to meet Finnish and Nordic startups.

Sisu Factory: A startup soft landing services launched in 2023 supporting international startups aiming to locate in the Finnish capital region.

DIANA: Defense Innovation Accelerator for the North Atlantic is a program coordinated by NATO with a focus on shaping a peaceful future by finding and accelerating dual-use innovation capacity. In Finland, the collaboration involves VTT, Aalto University, University of Helsinki, and University of Oulu leveraging Espoo's expertise in quantum technologies, semiconductors, AI, and cybersecurity. In essence, it is a training program that helps companies develop deep technologies and innovations for commercial and defense purposes.

Espoo Game Hub: A game hub launched in 2023 with the aim to birth new gaming companies following the footsteps of Espoo-born gaming industry giants Supercell, Remedy and Rovio.