The newly established Defence Investment Fund will invest in innovative companies in the field of defence and security. The Fund was established after INVEGA and the Ministry of National Defence of the Republic of Lithuania signed a financing agreement.
Preparations are under way for the selection of a financial intermediary – a venture capital fund manager.
What are the benefits?
Venture capital investments will stimulate creation of new businesses developing innovative ideas and help the growth of existing companies that have already introduced their defence and security products or services to the Lithuanian market.
Once the manager has been selected, a 3-tier venture capital fund will be set up to carry out both pre-acceleration and acceleration activities. The selected manager will seek to attract additional funding from independent private investors and provide practical business creation and business development assistance to defence and security companies. The companies will be able to consult with investors, security and defence industry experts, who will help accelerated grow of the business and ensure the expected return on investment for the fund.
How does it work?
Under the prepared investment strategy of the Defence Investment Fund, the young or emerging defence and security companies will receive a 3-tier support aimed to provide the knowledge and investment they need to thrive.
- Tier I or pre-acceleration tier will focus on team building, development of new ideas and products, and evaluation of the emerging business model in the market.
- Tier II or accelerator tier will provide acceleration services and initial small venture capital investments in product design, development and marketing.
- Tier III or venture capital fund tier will focus on investment in companies to grow them and receive a return on investment.