Baltics Launch €225 mln Fund to Boost Local VC markets
Estonia is contributing 75 million, local partner is Smartcap
TALLINN – The European Investment Fund (EIF) and the national fund managers of Estonia, Latvia, and Lithuania have established the Baltic Innovation Fund 3 (BIF 3), a €225 million initiative designed to bolster the region’s private equity and venture capital markets. The EIF is committing €75 million, with Estonia, Latvia, and Lithuania each contributing €50 million.
Key Objectives and Structure
Mobilization: The fund aims to act as a cornerstone investor, leveraging up to €700 million in total investments.
Growth Focus: Approximately 70% of the capital is allocated to growth-stage companies, with the remainder targeting late-stage venture capital.
Sustainability: Up to 20% of the volume will be invested in funds aligned with climate objectives.
Timeline: Capital will be deployed over five years into 8–11 different funds.
Strategic Impact
The initiative follows BIF 1 and BIF 2, which have channeled over €1.19 billion into the region since 2013. Hendrik Reimand, Chairman of EstVCA, noted that BIF 3 is “critically important for the sustainability of the sector,” ensuring that local funds can continue to support high-potential companies.
Sille Pettai, CEO of SmartCap, emphasized that the fund sends a “clear signal to private investors that the Baltics remain an attractive and resilient market,” even amidst complex geopolitical shifts. This aligns with the mission to provide “expert and independent analysis” that accelerates startup growth through transparency and fact-based discussion.
“The new fund is a clear signal to private investors that the Baltics remain an attractive and resilient market and that we continue to address the critical financing needs of companies seeking to grow and scale,” Pettai said in a statement.