Story
Investor Jussi Heinila: “I never sell more than 50%”
Jussi Heinilä, a seasoned investor has had remarkable success in the world of startups. He has invested over 50% of his exit earnings to new startups and truly feels it’s important to support new entrepreneurs and the startup ecosystem.
With a track record of over 60 companies he has invested in and over 200 he has helped develop, he has instincts one can only envy. But he also has some core principles that haven’t let him down yet. Of course, there’s always a bit of luck involved.
Play the long game
Jussi is especially proud that, despite several opportunities, he’s never sold his shares at a discount. Part of this can be attributed to his good fortune in picking startups. But as selling at a discount is rather a norm than an exception in the world of secondaries, he, too, may need to sell at a discount at some point.
His historical portfolio includes brilliant success stories like AIven, Smarp, Tikitin, Jobilla, MOST Digital, Nordsafety, Treon, Kausal, and other companies seeing a lot higher demand than supply.
Jussi has the patience to wait until the valuation feels right. He notes that in the early days, even a 5x return in a few years might have been acceptable. Now, from a position of financial freedom, he can comfortably wait longer – depending on the company’s progress, exit potential, and who the joining investors are.
And the patience pays off.
For example, once Jussi received an offer for a 5x return on an early-stage investment. He turned it down because it felt like a 50% discount based on the company's potential.
Just 12 months later, he was able to sell half of his shares at a 45x return. “I’m glad I trusted my instincts,” he says.
3 key investor
tips from Jussi
Jussi has some rules he abides by in his investments.
Selling at the right time is hard – take a look at the big picture as well. Are you able to take extra risk by not selling? Why do you need the money? Is there a better place for the funds or a better company to support their growth? Will the prospects get better if you exit later? Naturally, in earlier days any positive exit can be very good news, but the larger your portfolio, et more options you have.
Be patient – don’t rush to sell if you believe in the long-term vision of the company. Make sure you’re comfortable with the price. If the numbers don’t add up, trust that instinct. The less you need the money, the better decisions you can make. For example, he currently has a 6x secondary offer (no discount). Half of the small owners took it, Jussi will not. He’s sure he can make a return of more than 10x.
Never sell more than 50% – Jussi says it’s a difference between “Thank God, I sold half” and “Thank God, I only sold half”. Selling only half of your shares allows you to mitigate risk while keeping some skin in the game for future upside.
Jussi’s journey shows that you should never act from a place of fear or impatience. A mix of good timing, patience, and strategic decisions can lead to remarkable returns.
Jussi Heinila is a high-energy multitasker in the world of growth companies. He is especially interested in ICT, the impact and health tech industry, and AI. He’s been directly involved with more than 200 firms in their international expansion and has invested in more than 60 startups.