KredEx, a state agency that supports businesses, has announced it will establish a state-financed venture capital fund to bankroll startups.
With a budget of 55 million euros, the fund taps EU Structural Funds and will seek additional, matching funds from private investors. The fund will be run by private managers, reported Äripäev.
"By distributing risk through equity holding, the consistency of public and private interests and the managing of the fund on the basis of business principles will be ensured. Such a model is in use in many countries and Estonia has previously implemented it as well,“ said KredEx director Andrus Treier.
"In this way, it is presumably possible to offer attractive opportunities for investing in the region, both for international investors and local pension funds,“ he said.