What are the benefits?
Individual venture capital markets in the Baltic countries are of a very limited size and are unattractive to international investors. For this reason, the European Investment Fund (hereinafter referred to as the “EIF”) proposed to set up the Baltic Innovation Fund (hereinafter – the BIF), a Fund of Funds intended to promote the development of venture capital markets in the three Baltic States (Lithuania, Latvia and Estonia). BIF investments are and will be oriented towards the companies with high growth potential operating in the Baltic region.
Within the next five years, BIF II intends to invest in private and venture capital funds with focus on the Baltic States. The fund managers selected will be instructed to attract private investors. The expectation is to increase the amount available for investing in companies of the Baltic States to €300m thanks to contribution of private investors. The aim is to encourage further investments by private investors in Baltic companies thus contributing to the development of the region.
What companies are eligible?
Micro, small and medium-sized enterprises can apply to the following venture capital fund managers: BaltCap Private Equity Fund III.
What is the maximum amount?
It is estimated that the total size of BIF II will amount to €156m. Invega will be investing 16.67% (€26m) of the total size of BIF II from INVEGA funds. The respective national promotional institutions in Latvia and Estonia, i.e. ALTUM (Latvia) and KredEx (Estonia), will also contribute 16.67% (€26m) each, and the EIF will be investing the remaining 50% of the funds (€78m).
How does it work?
Currently, the fund invests in BaltCap Private Equity Fund III. Investing in the funds will be taking place until mid-2024.
Further information on the BIF is available here.
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