Investment & Fund Management
The Baltic Innovation
Full Credential Description
The Baltic Innovation Fund (BIF) was established to address a significant gap in equity capital availability for small and medium-sized enterprises (SMEs) in the Baltic States. The initiative faced the challenge of limited private equity and venture capital funding, which hindered the growth of innovative and export-capable companies in the region. To tackle this issue, the BIF was launched with an initial investment capacity of EUR 100 million, contributed by national agencies from Estonia, Latvia, and Lithuania, alongside a EUR 40 million investment from the European Investment Fund (EIF).
In response to the growing demand for funding, the BIF was recently increased by EUR 30 million, which is expected to generate an additional EUR 100 million in private equity and venture capital funding over the next 5-7 years. This increase will allow for the financing of at least two more fund managers, thereby triggering further private investment. The total funding available through the four operational funds under BIF is estimated to reach at least EUR 270 million, significantly enhancing the financial resources available for high-growth SMEs in the Baltic region.
The collaborative effort between the EIF and the three Baltic States has not only attracted substantial private financing but has also established a long-term investment scheme that adheres to the best market standards for equity investments. This unique transnational initiative is expected to stimulate economic competitiveness and employment growth in the Baltic States by providing comprehensive support for companies at all stages of development, from initial ideas to sustainable growth. The BIF exemplifies how coordinated efforts among countries can effectively enhance access to risk capital and foster a more vibrant entrepreneurial ecosystem in the region.