Estonian SmartCap changes investment focus for its Green Fund

The Estonian fund management company SmartCap has announced the updated terms of its Green Fund Direct Investment Program. The changes will increase the amount of investment in a single company and shift the focus to startups in the late stages.

  • SmartCap is a small fund management company, a subsidiary of the Estonian Business and Innovation Agency (after the merger of Foundation KredEx and Enterprise Estonia), registered with the Estonian Financial Supervision Authority and managing the SmartCap Venture Capital Fund and SmartCap Green Fund.
  • SmartCap Green Fund was advised by Ellex Partner Antti Perli and Counsel Gerd Laub. One of its latest investment deals was the €4 million round for the Estonian producer of sustainable carbon nano-materials UP Catalyst.

Details about SmartCap Green Fund Direct Investment Program and new changes

  • The Green Fund Direct Investment Program aims to support early-stage startups that develop green technologies, operating energy, agriculture, food industry, transport and logistics, material and chemical industry, and environment. The companies must be established in Estonia and conduct business activities there.
  • Through SmartCap’s Green Fund, the volume of which is 100 million, it is planned to offer equity investments together with private investors until 2026. 
  • After changes, the Green Fund’s investment in one startup will now range from €500,000 to €5 million. The Green Fund is also ready to invest in later stages, including Series C funding rounds, where companies are in an active expansion phase and need capital to accelerate growth.

The purpose of the changes is to ensure better access to capital for green technology companies that have already passed the first rounds of financing and to provide the next push to further develop their product or services and enter new markets,

Ellex Partner Antti Perli, commented.

As before, the following principle will continue to apply. The Fund invests in companies together with private investors, and private money must account for at least half of this funding round. At the same time, at least 30% must be new private capital for the company.