Hämeenlinna prepares Finland’s first regional impact fund
On Monday, September 21, the Hämeenlinna City Board will discuss the establishment of the Catalyst Fund. If implemented, it would be Finland’s first regional impact fund, combining corporate financing, private capital, and measurable vitality impacts into a single operating model.
The fund has been prepared and piloted in Hämeenlinna for a year and a half. The goal of the fund is to accelerate business growth, investment, and renewal, and to commit more private capital to the development of Hämeenlinna.
The city is launching the fund with a maximum investment commitment of one million euros, and the long-term target size for the fund is 10 million euros. For every euro invested by the city, at least an equivalent amount of external funding will be sought. Based on the 2025 pilot, the operating model has generated interest among companies and succeeded in activating new businesses within the scope of growth financing.
– The Catalyst Fund is an exceptionally innovative opening in Finland. For the first time at a regional level, it combines private capital, corporate financing, business services, and measurable impact into a single entity. The goal is not only to finance companies but to generate growth, investment, and new jobs in a way that benefits all of Hämeenlinna, summarizes Director of Vitality Niklas Lähteenmäki.
Regional actors involved in building growth
Key regional actors from the finance and insurance sectors are also involved in the preparation of the fund. These actors have announced their conditional commitment to the actual fund. The commitment will be realized if the necessary decisions regarding the establishment of the fund are made and the fund is launched as planned.
– Lammin Säästöpankki is involved in the Catalyst Fund because the long-term development of the vitality of its own operating area is at the core of the bank’s strategy. We see the fund as a new and impactful way to support regional companies, investment, and growth together with other actors, says CEO Lauri Kalpala.
– We are involved because we want to play our part in supporting and helping companies in our region toward growth and success to strengthen the vitality of Häme, says Eeva Vainio, Business Director at OP Häme.
– As a local actor, the task of LähiTapiola Loimi-Häme is to promote the well-being of our owner-customers and our entire operating area. The Catalyst Fund is an interesting opening where business growth is combined with concrete regional impact. We want to be involved in supporting companies in Hämeenlinna that create jobs, strengthen vitality, and build sustainable growth for the entire region, states Business Director Petteri Laurila.
If the City Board approves the proposal, the matter will proceed to the City Council for a decision in early October. The fund’s operations are intended to begin during 2027.