The Estonian government has approved a plan by which Kredex, the governmental guarantee agency, will launch a 60 million EUR fund of funds next year aimed at boosting seed and growth phase initiatives. The investment will enable up to 100 Estonian startups to access new equity investments. The companies in focus should have their core activities connected to Estonia.

The funds will be given to three or four fund managers. These will add an additional 20 million EUR from the market, making the whole investment 80 million EUR. One of the funds will be a co-investment fund of business angels to help business Angels invest in startups.

The initiative is being launched in order to improve the competitiveness of Estonian entrepreneurship, which, according to a survey conducted by Enterprise Estonia, is constrained due to insufficient access to equity investments and entrepreneurs' uneasiness at fundraising.