Micro, small and medium-sized enterprises (SMEs) can already apply to the venture capital fund Iron Wolf Capital for investment in the capital of SMEs engaged in research, experimental development and innovation, under the venture capital instrument Seed and Development Fund II of the Ministry of Economy.
After the first stage of attracting investment, the size of this Fund equals EUR 16 million, with public sector funds in the amount of EUR 13.76 million assigned by UAB Investicijų ir Verslo Garantijos (Invega), and the remaining part provided by Iron Wolf Capital and other private investors. The Fund is to make its first investments in companies shortly. On completing the second stage of attracting investment, the size of this Fund will reach EUR 25-30 million.
More than a half of the Fund’s money is intended for investments in innovative micro-, small and medium-sized enterprises with a high growth potential which do or plan to engage in research, experimental development and innovation (R&) in the field of smart specialisation.
‘Our goal is to help strong teams to develop innovative businesses and become successful on a global scale. We are a large team with interesting and useful experience and a great desire to continue growing and participate in creating unique businesses. We will cooperate with a broad international network of contacts developed by our team to attract the necessary competences and new financial resources, and this way help to connect science with business and turn innovation into profit’, claims Kasparas Jurgelionis, a partner at Iron Wolf Capital.
Kęstutis Motiejūnas, Chief Executive Officer of Invega, sees another benefit of these venture capital investments. ‘A number of innovative products are developed in Lithuania, but the lack of funds still makes it difficult for them to reach the appropriate market or customer. In this case the state seeks to contribute its investments to promote the emergence of new venture capital funds that would help to reduce the problems of implementing innovative ideas’.
About the Iron Wolf Capital Fund:
The manager of the Fund will be the team of Iron Wolf Capital Management which has offices in Vilnius and London. The team includes Viktoras Jucikas, the founder of YPlan, one of the start-ups that have attracted most investments, Žygimantas Susnys who has long-standing experience in investment banking, Tomas Martūnas who gas gained experience in seed funding of start-ups and has set up a few start-ups himself, and Kasparas Jurgelionis, a person who over the last 15 years has worked in the field of strategic development and investment management.
About the Business Finance Fund and Invega:
The venture capital fund Iron Wolf Capital is a venture capital instrument intended to help small and medium-sized businesses to obtain financing from both public and private sector investment funds. This financial instrument is being implemented through the fund of funds Business Financing Fund that is financed from the European Regional Development Fund. The fund of funds is managed by Invega and has been established by Invega together with the Ministry of Economy and Innovation and the Ministry of Finance using finances of the EU funds under the Operational Programme for the EU Funds’ Investments in 2014–2020 in Lithuania.
UAB Investicijų ir Verslo Garantijos (Invega) is a national development enterprise established by the Government of the Republic of Lithuania in 2001 and operating in Lithuania, its shares being controlled by the Ministry of Economy and Innovation. Invega implements and manages various financial instruments intended to promote business funding obtained from the EU investment funds, the national budget or finances that have already been used once and returned to the national or other funds.