The European Investment Fund (EIF), together with the national promotional institutions of Estonia, Latvia and Lithuania, has launched the Baltic Innovation Fund 3 (BIF 3), a €225 million initiative aimed at strengthening the region’s private equity and venture capital market.
- The initiative follows two earlier programmes, BIF 1 and BIF 2, which have been running since 2013. Together, they have mobilised more than €1.19 billion in funding for companies across the region and attracted over €900 million in private investment.
- BIF 3 will support both first-time and experienced fund managers, aiming to mobilise up to €700 million for Baltic growth-stage companies. Around 70% of the investments will focus on private equity growth strategies, with the remainder allocated to late-stage venture capital.
- Over five years, the fund plans to back 8 to 11 funds, dedicating up to 20% to climate-aligned investments. The EIF will act as fiduciary manager, overseeing fund selection, due diligence, and governance.
“By working together, Lithuania, Latvia and Estonia create a larger and more attractive investment scale, enabling the region to attract both international and Baltic fund managers, mobilise greater private capital and open up new growth opportunities for Baltic companies. Like its predecessors, BIF III provides a practical and effective way to pool resources, share risk and further strengthen the innovation ecosystem across the entire Baltic region," explains Tadas Gudaitis, ILTE Board Member and Business Development Division Head.
- BIF 3 is supported by the national promotional institutions of each Baltic country: SmartCap in Estonia, ALTUM in Latvia, and ILTE in Lithuania, with each contributing €50 million alongside the EIF’s €75 million commitment.
“We are committed to ensuring that our region's most promising companies have access to the growth capital they need to compete on the global stage. The new fund is a clear signal to private investors that the Baltics remain an attractive and resilient market and that we continue to address the critical financing needs of companies seeking to grow and scale," claims Sille Pettai, CEO of SmartCap.
