in content lists or on the content page.Media release 20.3.2006
In 2005, in accordance with its new strategy, Sitra launched its programme-based operating mode. The Innovation Programme, the Health Care Programme, the Food and Nutrition Programme ERA, the Environmental Programme, the Russia Programme and the India Programme were all fully launched. The objective of the programmes is to promote economic growth, competitiveness and effective utilisation of new technologies.
During the year, strategies were drawn up to develop the Finnish innovation environment and to improve the economic relations between Finland and Russia. The most significant project in the field of health care was to create the prerequisites for electronic health-care services. The Food and Nutrition Programme ERA, and the Environmental Programme launched operations to increase the competitiveness of their respective fields. The India Programme was launched with a background study which will be completed in June.
“On the basis of the experiences from the first year, the focus areas and their effects have proved promising. The Programmes have progressed in line with their goals and plans of action set in the strategy. We have managed to attract as partners all the key parties in the programme areas. We can be well pleased with the achievements of 2005,” says Esko Aho, the President of Sitra.
Good economic preconditions for operations
Sitra’s activities are financed by the yield from its endowment capital and the return on its venture-capital investments. In this respect, the past year was excellent. The market value of the endowment capital rose to €662 million from the previous year’s €573 million. The return from the endowment capital was 17 per cent and also the returns from venture-capital investments doubled compared with last year. The total amount of Sitra’s funding decisions was €28.9 million and the net profit €45.8 million.
In accordance with its strategy, Sitra will make further investments only in enterprises operating in the programme areas. In 2005, venture-capital investment objects were particularly sought from the areas of health care, environmental technology and food and nutrition.
“We are trying to exit from the Life Sciences and Industry Ventures enterprises in Sitra’s venture-capital investment portfolio in a controlled manner so that the continued funding for the enterprises is secured. Moreover, our aim is to at least return the capital invested in the enterprises to Sitra. According to exit statistics, this aim has thus far been achieved,” says Magnus Sjöblom, Director of Finance and Corporate Funding.
Sitra’s venture-capital investment portfolio has 95 portfolio enterprises and 37 venture-capital funds. Sitra supports seed enterprises through its PreSeed service. In 2005, the service was used by a total of 116 enterprises.
Further information:
Sitra’s annual report 2005 can be ordered or downloaded (pdf) via this website, see page Annual Releases »
Annual Report can also be ordered via e-mail: publications@sitra.fi