Estonian government invests €50M in SmartCap managed fund

The Estonian government will invest €50M over 4-5 years in a venture capital fund managed by the national investment fund SmartCap. This year, €17M from the state budget will be channelled into the Risk Capital Fund, while in the following years €32.2M will be channelled into the fund from the Baltic Innovation Fund 2 and EstFund repayments.

The investment received from the Estonian government will enable SmartCap to finance future private equity funds focused on companies in the traditional economy to finance the growth and expansion of local companies into foreign markets.

SmartCap was established in Tallinn in 2021 as a subsidiary of the Estonian Business and Innovation Agency. SmartCap manages two common closed-end alternative investment funds: SmartCap Venture Capital Fund and SmartCap Green Fund. The CEO of SmartCap is Sille Pettai.

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