Press release: NewIcon posts record sum of nearly 5 million euros in share issue

Health technology company NewIcon collected a sum of 4.999 million euros in its round of financing ended on Friday, 29 March 2019, which is the maximum sum of share issue permissible under the Crowdfunding Act. The sum is the highest ever raised by crowdfunding for an unlisted growth company in Finland.

The record sum is not the first of its kind for NewIcon. In 2017, the company raised 4.4 million euros through share issue. At that time, the sum was the highest ever recorded in Finland.

“After the round of financing two years ago, we have initiated several international market launches and distributor agreements and concluded significant framework agreements both in Finland and internationally. In 2018, our turnover also grew by 65% to 7.3 million euros. I believe that these factors have contributed to the success of the round of financing,” says Ossi Parviainen, CEO of NewIcon.

The enthusiasm in investment is also thanks in part to the projected market growth in pharmacy automation. The market is currently valued at 5.5 billion euros and is projected to grow annually by an average of 7% globally and nearly 13% in markets such as China, for example. Projections for 2025 put the total market value at some 9 billion euros*.

“The digitalisation of hospitals and ageing populations are global megatrends that require new solutions all across the world. Reducing the number of medication errors and improving patient safety through automation are also important topics that affect people,” says Parviainen.

Great leaps of growth in great markets

The target of NewIcon is to achieve a market leader position in all the Nordic countries and to grow rapidly in the Middle East and, with the cooperation of partner company General Icon established in 2018, also in China. NewIcon aims for a turnover of 60 million euros by 2024.

“This round of financing gave us the resources needed to continue our internationalisation. The funds will be used to achieve practical aims in sales, marketing and the establishment of a distributor network. Our aim is to make great leaps of growth in great markets. In addition to geographical expansion, we seek to grow by scaling up our business operations,” says Parviainen.

The share issue for NewIcon was arranged by investment service provider Springvest Oy, which also organised NewIcon’s previous round of financing in 2017. The previous share issue brought in nearly 300 new shareholders, and the new record sum is also formed of numerous smaller investments. It is the company’s aim that investments made by investors in the transaction will be realised in the near future with a good rate of return.

“The successful share issue is indicative of the fact that others trust our company’s expertise as much as we believe in ourselves. We are very pleased that the round of financing has been so successful,” Parviainen sums up.

*Source: Grace Market Data: Global Pharmacy Automation Systems Market 2017-2025 by End-user, Product and Region June 2018.