In Finland we have one: Sisu.

We are very proud of it, it pulls everyone together and powers up individuals. It makes us unbeatable. We believe that it will save us, magically, always. And it will definitely save Nokia.

The best description that I have read is In Other Words, a book by Christopher Moore. Enjoy!

- -

It is 1939 and two Finnish foot soldiers are pinned down in a battle.

“We are outnumbered,” one soldier says. “There must be over 40 of them, and only two of us.”

“Dear God, it’ll take us all day to bury them!” exclaims the other.

Sisu means a proud refusal to lie down and be beaten.

Ottamatta kantaa onko nykyinen rahoitusjärjestelmä tehokas ja tarpeenmukainen tai vaatiiko se uudistusta, minun pitää hiukan kehua: Tekesillä on ollut tärkeä rooli hankkeissa, joissa itse olen saanut olla mukana. Ilman Tekesiä moni asia olisi jäänyt syntymättä.

Tekesin rooli on ollut hyvin keskeinen rahoittamassa yrityksiä, joissa olen ollut mukana. Rooli on ollut kriittinen menestyksen kannalta. Lisäksi Tekesin virkamiehet, joiden kanssa olen asioinut, ovat tehneet vain ne tarvittavat selvitykset ja kyseenalaistamisen, jolla veronmaksajien rahoja voidaan perustellusti yksityisiin hankkeisiin kanavoida. Oman kokemuspiirini ulkopuolella en osaa tietenkään kommentoida, mutta oma kokemukseni on positiivinen ja prosessit sujuvia.

Tässä neljä hanketta, joissa Tekesin rooli on ollut ratkaiseva:

• CRF Health. Yritys, jonka perustin Jaakko Ollilan ja Jarkko Joki-Tokolan kanssa vuonna 2000 on tällä hetkellä yksi harvoista suomalaisista ohjelmistoyrityksistä, joka on #1 globaalisti omalla alueellaan ja etenkin Yhdysvalloissa. Liikevaihto on suomalaiseksi globaaliksi kasvufirmaksi hyvät yli 30 miljoonaa euroa ja jopa listautuminen voi olla mahdollista. Yrityksestä voisi tulla yksi sellainen, jota “ei myydä liian aikaisin ulkomaille”. Tekes oli mukana rahoittamassa TrialMax tuotteen kehitystä: ilman Tekesiä silloisilta rahoittajilta ei olisi löytynyt uskoa haastavassa tilanteessa panostaa hyvin merkittävää määrää uuteen tuotteeseen. Tuotteen pohjalta on rakennettu iso osa CRF Healthin liiketoimintaa. Hyvä Tekes, ja suuret kiitokset uskosta hankkeeseen.

• Oncos Therapeutics. HealthCap sijoitti alkuvuonna 2010 ensimmäisen ulkomaisen sijoituksen suomalaiseen pre-kliinisen vaiheen biotekniikkayritykseen yli kymmeneen vuoteen. Kohta käynnistyvää kliinistä tutkimusohjelmaa ei olisi voitu toteuttaa pelkällä HealthCapin sijoituksella, ja koko sijoituksen synnyssä Tekesin lisärahoituksella oli todella suuri merkitys. Oman arvioni mukaan Oncosin tiede on kovatasoisinta, mitä suomalaisessa biotechissä on nähty, ja jos Oncos onnistuu, on siitä iso osa Tekesin uskon ansiota. Vaikka monesta suusta on todettu, että biotekniikka ei voi onnistua Suomessa, uskoivat Tekesin virkamiehet Pasilassa niin paljon, että olivat jopa valmiita toteamaan, että Oncos voi siltikin onnistua.

• ZenRobotics. Rohkeiden mukanaolevien suomalaisten enkelisijoittajien ja Veraventuren lisäksi kukaan sijoittaja ei olisi uskonut, että Jufo, Tuomas ja Harri saavat jätteenkäsittelyrobotin toimimaan kalvosetillä, johon perustuen Tekes aikoinaan rahoituspäätöksen teki. Ajatus oli vaan liian hullu. Viime viikolla Suomessa oli kansainvälisen jätealan huippukonferenssi, jossa yli sata CxO-tason henkilöä suurimmista jätealan konserneista näki nyt kolme vuotta myöhemmin Viikin testijärjestelmän ja ihmetteli, miten robottikäsivarsi poimii kiveä, puuta ja metallia liukuhihnalta siten, että toiminnan ROI on todella korkea. Gaalaillallisen juhlapuheissakin oli vielä mainittu: ”We have seen today the future of recycling.”

• Valkee. Kirkasvalokuuloke, joka hoitaa ja ennalta ehkäisee kaamosmasennusta. Juuso ja Antti päättivät selvittää, ovatko ihmisen aivot suoraan valovasteelliset kuten useilla eläimillä, ja miten mahdollinen valovasteellisuus voitaisiin tuotteistaa. Laitteessa on kaksi korvanappia, joista led-valo johtuu korvakäytävän kautta aivojen valovasteellisille alueille vaikuttaen mialialaan pimeänä vuodenaikana. Nyt kaamosajan suklaanhimon ja väsymyksen  poistoon lähtee kuukausittain tuhansia laitteita Suomen rajojen ulkopuolelle – jo ennen tuotteen varsinaista lanseerausta – ja kasvunäkymät ovat vahvoja.  “Those crazy Finns have now tackled depression”, kommentoi moni maailmalla kuullessaan tästä.  Tekesin rooli tuotekehityksen rahoittajana on ollut ratkaiseva. Kuka muu olisi voinut keksiä, että valoa voi kuunnella?

Tässä on neljä esimerkkiä. Ilman Tekesiä näistä ei olisi olemassa nykymuodossa yhtäkään.

“There are no photoreceptors in the human brain.”

“Bright light cannot get into the brain via ear canals.”

“Valkee is all placebo.”

I must have heard these “facts” on Valkee million times from people who believe it is impossible that brain reacts to light.

Brain science is in its infancy and new, truly revolutionary things can be found. If I was a scientist, I would focus on the human brain to earn my Nobel.

The coming weekend Juuso will present at the Scandinavian Physiology Society Annual Meeting 2011. Professor Seppo Saarela and this team from the University of Oulu have done amazing research.

After this weekend, your brain is photosensitive. Period.

The research group found photoreceptors in all the evaluated 18 brain areas. The protein they found – called OPN3 a.k.a. encephalopsin – is a known photoreceptor. This protein captures light and turns photons into neural signals. Directing light onto the brain tissue with OPN3 will have a response.

These photoreceptors are localized on the brain cells that are in some of the most important areas for the production and storage of monoamines such as serotonin, dopamine and melatonin. Monoamines are the ones that largely command our mood all the way to depression.

Photoreceptors in the human brain are the most important evidence at this stage.

For Valkee bright light headset, this finding is more significant than any clinical trial. This is biology. There is a mechanism in our brain. In humans, there are no unnecessary proteins: such proteins would have disappeared during the years of evolution. These photoreceptors in our brains play a role.

Also, the result itself is unquestionable: either you have photoreceptors or don’t – and we do. The findings are made by using the industry-standard brain tissue staining techniques used in science like bread&butter on the breakfast table. Most blockbuster depression medications do not have an exact biological understanding why they work clinically. Having this biological finding for Valkee is significant news.

Something as revolutionary, controversial and effective as Valkee is subject to strong opinions for and against. We welcome the debate, listen carefully and aim at removing depression from the world.

However, most never complete or finish anything well. There are no end products, just things in progress.

This is deadly.

The end product each day –mentality focuses your team to deliver. It has two parts:

• First, “end product” means that you always deliver something tangible and complete. As an example, you don’t create ideas how your next product will be like, but you present the full product spec. End products take company forward, while half-made drafts only create unnecessary internal meetings and debates.

• Second, “each day” means that progress is constant and delivery cycles are short. I personally believe on daily deliverables. Working in a startup means enjoying the brain dash to get things completed at a constant pace.

Having the End product each day –mentality installed into your startup is very powerful. The entire team will have a culture that focuses on accomplishing, not doing. This is a bigger thing than personal effectiveness alone.

This is the third part of Startup Management Series based on my experiences and the culture we institutionalized at CRF Health. The earlier parts discussed “Deliver or die” and “There is no place to hide” principles that are inevitable for every successful startup to follow.

There is no place to hide

Tons of strategy books have been written about measuring performance and making people accountable. I propose that startups need to take this to the extreme: everyone’s performance is fully visible to all, with no place to hide.

This creates high performance culture: the ones not performing drop out without needing to fire them, while high performers enjoy the continuous learning and an environment that moves on. Also, if executed well, the ones leaving will get a good reference: they were part of the high-performing team and in any event are well above the standard.

In this culture, it is ok to fail. Failing is different to low performance. Consequence management needs to be clear and quick. If you allow people (and especially yourself as a manager) to hide, it will spread.

Any downsides? It is difficult to implement in a sophisticated manner, and can easily kill creativity – and even create fear. Performance means different things by environment, and that needs to be taken into account carefully. You run Navy SEALs different to a symphony orchestra.

My experience is that the most competent and creative people will love this – and ultimately demand it to stay and be happy.

Deliver or die is the first one.

In 2000 there were 200-300 eDiary startups in the world, and today there are three left who share the market: At least our princples did not prevent us from becoming #1.

The deliver of die -mentality is in the heart of every successful startup. Strategy and unique ideas are important, but ultimately, they are only the platform to deliver. One should consider all strategies, slides and spreadsheets being invented. You should also consider at least two or three teams doing exactly the same thing as you are, somewhere in the world at the same time – and as excited, as competent and as advanced as you are.

Strategies and slides do not win in the startup market. It is about being two to three times faster, better and more agile in execution, never accepting compromises. This hard-sounding mentality needs to be become the DNA of everyone in the team.

When a startup has the deliver or die -mentality, it is difficult not to succeed.

We today announced an angel round of 400,000 euros for Valkee including Esther Dyson, Anssi Vanjoki, Jyri Engeström and Lifeline Ventures. Esther as a health and Internet visionary and entrepreneur, Anssi with his unmatched experience in mobile devices and Web, and Jyri as a Web entrepreneur – we have a good team in formation.

For those who don’t know yet: Valkee is a gadget like any design mp3-player – but the ear plugs are not used for listening to music, they are used for projecting bright light direct to your brain. In clinical trials conducted since 2007, Valkee has cured 9 out of 10 seasonal affective disorder patients with a daily 8-12 minute bright light therapy. An amazing result that has potential to be replicated across other depression types.

This depression season, Valkee has been a big hit in Finland with extensive media coverage, increasing sales towards Christmas and positive user comments flowing in since the pre-launch in April. People are passionate about Valkee, which is totally new for a medical device.

I believe that Valkee is the future of medical devices. Devices will stop being ugly, bulky, beige-colored and something to be ashamed of. They start being lifestyle gadgets that smart people use to take care of themselves, to both treat and prevent. Having Valkee does not mean you belong to the depressed. Having Valkee means you are smart.

We are on a big mission to create a new category of depression treatments. I have been working with Juuso and Antti, Valkee co-founders, since end of 2009. This has personally been a rewarding project to be part of, and good for Lifeline Ventures.

We have been  already working together for few months with three companies – - to be announced soon. It has worked well for all, and especially for the entrepreneurs.

Lifeline Ventures is a different start-up accelerator. Ilkka adds games and entertainment to our Web and digital media experience, and lives and breathes the Lifeline model.

The official release is below. Welcome to Lifeline, Ilkka!

–

November 10, 2010. Helsinki, Finland – Ilkka Paananen joins Lifeline Ventures, the early-stage investor in health and Web, as Entrepreneur-in-Residence and Partner.

“Ilkka is one of the most successful and experienced entrepreneurs in the Nordic games industry. He has successfully built large teams from scratch and managed companies through rapid international growth. Ilkka is the perfect match for Lifeline Ventures, experienced in working hands-on with entrepreneurs and adding to our digital entertainment competence”, comment Lifeline’s co-founders Timo Ahopelto, Jarkko Joki-Tokola and Petteri Koponen.

“Lifeline has developed a new model for early-stage venture capital. I am impressed with the quality of the portfolio, and look forward to building the games and entertainment sector further. I believe we can make Lifeline the preferred partner for the best entrepreneurs in this space”, comments Ilkka Paananen.

Lifeline Ventures was founded twelve months ago and has made ten investments to date. Its portfolio includes such category-leading health and Web companies as Applifier, the World’s largest cross-promotion network for Facebook games and Valkee, the maker of the bright light headset that effectively relieves seasonal affective disorder symptoms.

Ilkka Paananen was the CEO and co-founder of Sumea, the mobile games pioneer that was acquired by Digital Chocolate in 2004. At Digital Chocolate, Ilkka held various management team positions from Managing Director of Europe to President of Digital Chocolate. In the latter role, he oversaw the publishing and development of the company’s product portfolio, managing Studios in Helsinki, Barcelona and Silicon Valley.

About Lifeline Ventures

Lifeline Ventures is an early-stage investor that co-creates growth companies in health and Web. The company invests in revolutionary ideas and driven entrepreneurs, often before the product launch. The Lifeline team works hands-on with the entrepreneurs to build their startup into a global category leader. More information: http://www.lifelineventures.com

For your convenience, my original post is below. I am almost obliged to re-visit this later this year, as I am sure there will be something coming.

–

Steve Jobs did it again – first content, then device and now ads

(April 13, 2010) Apple will be the talk of the town in mobile advertising this year. Last week at Apple’s OS 4 event, Jobs presented what advertising industry has been asking from mobile: iAd – the engagement media with scale and quality.

For brands, mobile advertising has had a big promise but no breakthrough: digital media and technology companies trying to fit the traditional online advertising model – mainly display and search – into mobile have not taken off. Mobile media is different to online: being based on communications and quick tasks one performs, not browsing, mobile requires different user experience. Running banners on mobile is like running radio ads on tv.

Most importantly, every new media property needs to add to what existing media already have. In mobile, this has not been the case and despite all the hype, the market is still very small. Planners and buyers already have tons of ‘eyeballs’ they can buy elsewhere in the six mass media channels. During my time at Blyk, the feedback from London’s media industry was clear: “Mobile does not add value to what we already have.” It is understandable – why to bother with complex mobile screen when I get richer experience in traditional web, and reach more people elsewhere? Blyk is the first media company to have formats that engage a qualified audience in mobile, but initially lacked audience scale with the MVNO model.

At the same time, advertising industry has been very clear on what they would need from mobile: engagement. Traditional reach and frequency –based media planning does not work anymore. Media landscape is cluttered with titles and channels, and media consumption is more scattered than ever. When built properly, mobile could become the engagement channel with massive reach. Unfortunately mobile operators who could play a role have lost in this game already.

More specifically, agencies have for long thought that mobile media opportunity is in engaging applications. Mobile needs to provide engagement, and in mobile engagement equals to applications that are fun, valuable and something you like. Whenever an agency showcase mobile, it is applications like Lynx Effect by BBH London. Thought leaders like Ogilvy UK’s vice chairman Rory Sutherland voiced already in 2007 that mobile advertising opportunity is in smart phones and ads that become indistinguishable from being a service.

Now, what Apple and Jobs are up to with iAd? In the OS 4 event Jobs addressed everything that the advertising industry has been waiting for. Apple has now an opportunity to combine mobile media user experience needed to engage people with creative opportunities that will inspire the industry – and most importantly, that has a mass media scale immediately:

- You know the ads on the web… They’re eye catching and interactive, but they don’t deliver emotion. What we want to do with iAds is deliver interaction and emotion [to create real engagement between your brand and our Apple users].

- This is a pretty serious opportunity [with 1 billion impressions per day in our AppStore ecosystem], and it’s an incredible demographic [as there is no more attractive technology brand for advertisers today than Apple, qualifying its users as the audience you want to talk to]. But we want to do more than that. We want to change the quality of the ads too [as mobile is a different media to online].

- These ads are looking a lot more like apps. Almost totally separate apps that live inside apps. Is your mind blown yet?

I believe that Apple will be the talk of the town in mobile advertising for 2010.