Investment & Fund Management

The European Investment Fund (EIF) and Tekes Venture Capital Ltd launched the Finnish compartment of the European Angels Fund (EAF Finland), a EUR 30 million co-investment fund aimed at supporting business angels in financing early-stage companies. The initiative addresses the challenge of limited investment capacity among business angels and non-institutional investors in Finland, particularly for innovative, internationally oriented SMEs.

The tailored solution involves establishing Co-investment Framework Agreements (CFAs) that provide a predefined amount of equity for co-investments to each Business Angel. This allows them to make investment decisions while receiving matching funds from the EAF on a pari-passu basis. The CFA amounts typically range from EUR 250,000 to EUR 5 million, significantly enhancing the financial resources available for business angels.

As a result of this initiative, the EAF has reached a facility volume of approximately EUR 320 million across seven countries, with agreements established with over 50 Business Angels for co-investment volumes nearing EUR 150 million. Business Angels have already utilized around EUR 30 million for co-investments in more than 200 SMEs, with expectations to expand the portfolio to over 1,000 SME co-investments as the program rolls out. This initiative not only increases the financial support available to business angels but also enriches the entrepreneurial ecosystem in Finland by diversifying funding sources and enhancing the skills and networks of local investors.