For a small category C with multilimits for finite diagrams, a concept
ual description of its free coproduct completion Sigma(C) is given as
the category of those set-valued functors of a finitely accessible cat
egory with connected limits which preserve these limits and filtered c
olimits. In this way we recognize the free coproduct completion as a f
initely complete category and show that Sigma(C) is universal with res
pect to existence of finite limits and of small coproducts which are d
isjoint and stable under pullback.