Building an equity ecosystem in the Baltics: an evolution

Our role as a multilateral development institution means that we help put public resources to work in a smart way, and most importantly in a way which helps to attract private investors.

Private investors are crucial to the independence and sustainability of an ecosystem, therefore our role evolves over time.

An evolution of equity financing in the Baltic ecosystem

as an ecosystem develops, it will move through three phases:

Typically > 50% public funding

Characterised by:

  1. First time teams
  2. Early stage VC
  3. Moderate/low participation of local private investors
  4. Education of entrepreneurs required
  5. Stimulation of local BA networks

EU Structural Funds

Typically < 50% public funding

Characterised by:

  1. More experienced investment teams
  2. Balanced with private capital
  3. Later stage investments
  4. State and IFIs provide signaling effect
  5. Private investors drawn in by market opportunities


Typically < 30% public funding

Characterised by:

  1. Well established teams
  2. Private dominates public
  3. Lower mid-market investment strategy
  4. Public capital as a anchor investment to ensure “critical mass”
  5. Attractive alternative asset class for private investors


The EIF's 20 years of experience in the Baltic market


First Equity Investment into a Baltic SME


JEREMIE initiatives

Early stage programmes with EU structural funds in Latvia and Lithuania


Launch of BIF I

First EIF managed fund-of-funds with €100m dedicated to Baltic PE/VC investments


Top-up to BIF I

Fund increase of €30m allowing for additional fund investments


End of BIF I

Investment Period Successful investments into 7 PE/VC funds


Launch of BIF II

Second generation fund-of-funds dedicated to Baltic PE/VC investments as a continuation from BIF I with €156m