EIF launched in March 2016 in co-operation with KredEx and an Estonian Ministry of Economic Affairs and Communications EUR 60 million Fund-of-Funds initiative to stimulate equity investment in innovative and high growth-focused enterprises in Estonia. EstFund is a fund-of-funds, which means that enterprises are not financed from EstFund directly, but investments go to funds which invest in enterprises.
EstFund will invest in several risk capital funds, which will then invest primarily in Estonian enterprises. The new fund-of-funds will support smaller risk capital funds targeting smaller and often earlier stage investments, operating in a complementary way to the existing successful Baltic Innovation Fund initiative, which targets larger and later-stage deals in the Baltics. Approximately EUR 100 million in equity investments is expected to be made available to Estonian enterprises in the coming years.
The fund managers will be selected by an open call for expressions of interest. The selected fund managers will receive a cornerstone investment in their fund from the combined resources of EstFund and co-investment by EIF allocated indicatively as follows:
- EUR 30 million Venture Capital Fund;
- EUR 15 million Expansion Capital Fund;
- EUR 15 million Business Angels Co-Investment Fund.
Applications closed on 29 August 2016. Fund managers will be selected by the end of 2016. Information from the European Investment Fund article as of 29 June 2016. Available here.