As I delve into the world of venture capital, one name that continues to surprise and fascinate me is Lifeline Ventures. Their annual bench press and dead-lifting contest every November to find the world’s strongest investor and founder is just a glimpse into their unconventional approach. But it’s not just about the quirks – their portfolio speaks volumes about their willingness to take risks and push boundaries.
From Trash-Sorting Robots to Seasonal Affective Disorder Treatment
Their investments range from trash-sorting robotic systems to ear-plugs that shine light on the surface of your brain to treat seasonal affective disorder. And if you think that’s eccentric, wait until you hear about their backing of the Finnish rock band Leningrad Cowboys, who created a game and feature film about a half-Siberian, half-Mexican dog.
The Supercell Success Story
But amidst all the unconventional investments, Lifeline Ventures has had some remarkable successes. They were the first investors in Supercell, the Helsinki-based game developer behind the hit game Clash of Clans. The company eventually sold slightly more than half of itself to Softbank and Gung-Ho Entertainment for $1.53 billion – a staggering 4,000X return on investment. Petteri Koponen, Lifeline’s founding partner, puts it succinctly: "We’d never be in a hurry to sell."
The Second Fund: Smaller but with a Long-Term Perspective
Now, the firm is pulling together a second fund, which is surprisingly smaller than their first at roughly $20 million compared to $30 million. Counterintuitive as it may seem, Koponen explains that they resisted external pressure to raise more funds and instead chose to maximize their impact by investing even earlier stage.
Indefinite Lifespan: A Long-Term Bet
But what’s truly innovative about this fund is its indefinite lifespan – a departure from the standard 10-year timeline. According to Timo Ahopelto, Lifeline’s other founding partner, "Instead of holding companies for 10 years, we could hold them for 20 years or as long as it takes." This approach embodies the Finnish spirit of pragmatism and long-term thinking.
Beyond Games: A Broader Focus
You might expect Lifeline Ventures to focus on the thriving gaming industry in Finland, given their success with Supercell. However, Koponen is candid about their priorities: "We think the chances of category leadership are pretty slim… We’re not planning to focus too much on games." Instead, they’re excited about investments like Oncos Therapeutics, which works on targeted cancer therapies and Smartly.io, a Facebook ads optimization tool.
A Legacy of Innovation
As I reflect on Lifeline Ventures’ journey, it’s clear that their legacy is built on innovation, pragmatism, and a willingness to challenge conventional wisdom. They’re not just investors – they’re pioneers who continue to push the boundaries of what’s possible.
Fintech
- LemFi moves remittances further into Asia and Europe with $53M in new funding
- Robinhood agrees to pay $45M in SEC settlement