End of an era

A business deal which originated last February is finalized. Uniform VP acquired a medical device product business. In future, we plan to become a player in sporting goods industry.

We no longer post to High Growth Venturing blog. We would like to thank you for reading our very biased entries. High growth venturing, or, in my terms, being a market leader in our segment, still is our passion. Thank you Pasi, our business is largely based on your vision.

Thank you for everybody who contributed to our blog, by writing or by discussing with us. I have probably learned from every discussion. Now I feel I am very well equipped with information of any kind of problem a start-up can meet.

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Now when I became a start-up entrepreneur myself, I’d like to share a piece of financial information:

Finnish state has given a new statutory order of capitalizing research costs. It is not allowed anymore. Only development costs can be capitalized if there is revenue expectation which exceeds the amount of costs. They have also given examples what is research and what is development, see Finlex database.

The fundamental difference between American and Finnish startups is that American startups are equity funded whereas Finnish startups are bootstrapped, subsidized and heavily dependent on – how could I say it - accounting utilization. It’s legal but it makes Finnish companies non-comparable with others. The Americans expense as much as possible, the Finns capitalize as much as possible, just because they are not equity funded and they have to do it not to go broke.