Luxid Group's Board of Directors and CEO Pasi Voho had a choice after about six months of negotiations with growth equity investors. In the end, attitude is what counts.
Pasi Voho went from one meeting to another in early 2024. His task was to find an accelerator, capital and partnership for a technology-driven internationalization strategy that would make the company one of Finland's largest B2B marketing agencies in just a year.
Voho-led Luxid Group had been in the process of merging Finnish ID BBN and Luxus to form Luxid Group for the past three years. Luxid is a creative digital marketing design agency specializing in data and artificial intelligence technology consulting.
“Finding a capital investment partner was written into Luxid's growth strategy 2-4 years from now. We had been developing board and strategy work for a couple of years, among other things. We were basically looking for a minority investor who understood our business, the prerequisites for internationalization and the importance of technology.”
It soon became clear to Voho that the small things matter when choosing a partner.
“Money is money. You can get it from many different places. The differences come out in attitudes. Did you sense from the other party, are they committed? Do they want me? These were ultimately extremely important, because for an entrepreneur they are ultimately the most important questions when looking for a new, completely external partner,” Voho reflects.
“Yes, you could sense who was prepared and who came to the meeting to read the deck,” Voho recounts the negotiations.
The round at the growth capitalists' tables took about six months in total.
Bringing in an outside investor is one of the biggest decisions an entrepreneur makes in their entrepreneurial career. Voho had already gone through this ordeal once. It made negotiations easier, where instead of money, they look for a working partnership.
“I had personally gone through the worst pains of giving up as an entrepreneur already during the merger. The things that are emphasized when finding a completely external partner are the same things that are weighed in any engagement of key personnel.
“This time, it was possible to get feedback and validation of our growth strategy in the discussions. In my experience, the discussions are very direct. Your ideas are challenged, the questions are direct and sometimes even brutal.”
“It required a lot of work, of course, but as a process it was excellent. The reception was excellent. It created a whole new enthusiasm,” says Voho.
Luxid has found a growth path by specializing in marketing technologies and data development in addition to creative content. Artificial intelligence has the potential to scale the company's expert business, and from Voland, Voho will gain an expert team for scaling technology-driven business.
“Artificial intelligence is changing entire industries. Investors differed in whether they saw it as a threat or an opportunity. When you have a co-entrepreneur who understands the possibilities of technology in depth, there is a high-quality sparring wall available for ideas.”
With Voland, Voho recognized what the company was looking for right from the start.
“The Voland team exudes genuine spark, enthusiasm and a desire to help. The activities are formal or very informal, as needed. Mainly, it is a taste of life,” Voho smiles.
“The Voland team wants to support and offer opportunities, but while recognizing the dynamics of leadership. Good governance is respected. Decision-making power lies with the company’s management and influence is achieved through board work.
“If not, then go ask for help. And that’s what I’ve asked every member of the Voland team. And I’ve always received support and answers,” Voho adds.
Voland and Luxid announced their partnership in August 2024. The investment enabled Luxid to deepen discussions about a corporate acquisition in the United States. The deals were sealed about six months after Voland joined, when Luxid acquired the marketing agency TriComb2b based in Dayton, Ohio, in the United States. With the deal, TriComb2b, which has a turnover of almost eight million euros, merged into Luxid Group.
“The ideas presented by Voland moved us forward in preparing for the corporate acquisition, and on certain issues we proceeded as they suggested.”
The co-entrepreneurship and team attitude offered by Voland have created a fruitful, immediate cooperation relationship in less than a year.
“A friend of mine who knows venture capital well has stated that when you expect to get 100, you get 50. With less than ten months of experience, you can say that in Voland’s case, you get much more."