Advertising Kiosked’s corporate promise for corporate restructuring in the past years – behind the company Kov Hed, Rovio’s main owner, and Tero Ojanperä, Nokia’s former CEO

The legend of Kiosked, an advertising technology company that has been in trouble for a long time, is coming to an end.

Advertising technology company Kiosks have been applied for corporate restructuring. The company, founded in 2010, was one of the most promising startups in Finland at the beginning of the decade, and it raised exceptionally large amounts of funding at that time.

The company has developed technology for publishers that optimizes ad slots on websites.

He has been the Chairman of the Board since 2014 Tero Ojanperä, known as a former Nokia CEO and venture capitalist. Today, Ojanperä is the Chairman of the Board of the artificial intelligence company Siloai. Ojanperä left the Kiosk last August.

Well-known investors have also been involved, such as Rovio’s main shareholder Kaj Hed and Heineken’s beer investment company. In 2012, Kaj Hed invested almost three million euros in the company. It was the first time Hed had made an angel investment in a startup outside of Rovio. At the same time, he became chairman of the board of Kiosked for a couple of years.

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Kiosked’s latest financial statements for 2020 show that the company made a turnover of only EUR 0.8 million and an operating loss of approximately EUR 0.7 million. As of 2017, net sales had been EUR 2.4 million.

The company’s equity ratio was exceptionally low in 2020 (-385%) and its relative indebtedness was really high. Its chances of survival were already poor at that time, without significant additional funding.

The corporate restructuring did not come as a surprise. As early as 2018, Kiosked said it had to renegotiate its million-dollar loans after the collapse in net sales. At that time, the company cut costs, laid off staff and closed some of its offices. The company announced the co-operation negotiations already in 2017. The essential question is why the company persevered without such a long-term growth prospect.

HS has not yet reached the CEO of Kiosked Antti Pasilaa or Tero Ojanperä to comment.

Yet in 2017, Kiosked raised almost EUR 27 million in funding, of which EUR 15 million came from the European Investment Bank and EUR 11.8 million from various equity investors, as well as various debt instruments. The company said at the time that it was preparing for rapid growth with a large war fund. At that time, the company had raised a total of almost EUR 40 million in funding during its history.

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Over the years, the company has also made a loss of tens of millions of euros. It has had offices all the way to Sydney, Australia, Shenzhen, China and Singapore.

At its largest, the Kiosked has employed more than 80 people. According to the financial statements, the company still had about 22 employees in 2017, and in 2020 there were only ten.

The other founder of the company was a serial entrepreneur Micke Paqvalenwho left the CEO of Kiosked as early as 2016. His next company, Trä Kronor, which specializes in wood construction, has also been in financial difficulties.

History Along the way, Kiosked’s product has changed radically. Originally, the company’s vision was to embed the e-commerce icon directly into the images and videos posted on the site, so that when you see sneakers pictured on the magazine’s website, one could immediately buy one. After that, the product was a technology aimed at publishers that optimizes ad slots on websites.

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In the rapidly changing field of advertising technology, the company did not keep up with developments.

The original idea for the kiosk was not bad, but its timing failed. The advent of online stores directly in connection with social media images, for example, is now a rising trend in online advertising.

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