SmartCap is a KredEx subsidiary and the manager of the state venture capital fund Early Fund II

The SmartCap-managed Early Fund II operates as a fund of funds and invests into Estonian venture capital funds, which in turn, together with private investors, invest into early-phase Estonian technology companies with high international growth potential.

The sole unitholder in Early Fund II is the Republic of Estonia.

Mission

SmartCap’s mission is, in cooperation with private sector professional fund managers, to create a vital venture capital ecosystem and fertile ground for development in Estonia. Together with the finest risk capital fund managers and experts in Northern Europe, we do our part to actively contribute to development of the capital market and, through supplying capstone investment, the rise of new fund management companies.

Values 

Estonian venture capital funds in which SmartCap has a holding help early-phase companies raise capital, investing together with private investors. They support the success of start-ups, offering multifaceted support and professional advice.

In carrying out our investment strategy, we rely on experienced fund managers in the venture capital sector who have an interest, the experience, and the capability to invest capital into early-phase technology companies.

Role

SmartCap’s role is to ensure the best seed and growth-funding opportunities. The state-driven fund of funds model promotes development of the venture capital market. Through the making of capstone investments into private fund managers, barriers to entering the venture capital market are lowered for private investors.

SmartCap invests into other venture capital funds together with private investors. In doing so, we organize open tenders to attract professionals with a solid business background whose experiences, business networks and institutional capacity support success in the field of venture capital.

News

Siia on kogutud SmartCapi uudised ehk uudise pealkiri ja otselink uudisele, mis asub KredExi veebis uudiste alajaotuses.

Portfolio

Tera Ventures trust

The Tera Ventures team manages the direct investments into technology companies made in the past by the Estonian Development Fund and SmartCap and takes responsibility for managing continuing investments. Tera Ventures is a venture capital investment fund and has a capacity of 27 million euros.

For more information, visit the Tera Ventures website.

Superangel One trust

Superangel One is an early-phase investment fund whose aim is to invest into 40 early-phase techs in the next 10 years. The fund’s team invests its time and capital to help to create new tech companies and support their growth. In 2018, the fund managers created a start-up accelerator called Alpine House. The fund has a total of 12 million euros, with SmartCap’s share being 4.2 million euros.

For more information, visit the Superangel website.

High-Tech Investment Fund

The Estonian state is investing EUR 10 million into high-tech start-ups, through the SmartCap managed Early Fund II, whose development of a product or service and business model are largely based on research and development and the associated intellectual property.

The investment will be made in accordance with SmartCap’s early-phase fund-of-funds strategy, and a suitable management company, in which to place the EUR 10 million allocated from the state budget, will be found via a public competition.

The creation of a fund that mainly invests in products and services focusing on research and development is taking place for the first time in Estonia and, according to the current timetable, a period of nine months has been set aside to prepare for the competition.

The development of the terms and conditions for the competition involves mapping the market situation, consulting with various parties and mapping international practices and, within the framework thereof, also passing through standard stages of investment preparation.

Investment preparation stages:

Investment preparation stages
Sponsorship principles

As a participant in Estonia’s venture capital market, SmartCap contributes to the development of the venture capital market with sponsorship activities by supporting projects aimed at market development as well as events in the field, favouring young talents, and initiatives that have a long-term effect on developing entrepreneurship.

Through its support activities, SmartCap wishes to create long-term partnerships by contributing with its team’s competence in addition to funding. We prefer regularly occurring (e.g. annually) projects and initiatives that have a widespread impact.

All sponsorship projects must be coordinated with the SmartCap values and strategic goals and correspond to the fields determined in the sponsorship principles.

SmartCap does not support private persons (except scholarships when co-operating with Estonian universities), political or religious initiatives and events.

Areas of sponsorship

In its sponsorship and supporting activities, SmartCap focuses on four main areas.

  1. Developing Estonian venture capital market

    As a participant of the Estonian venture capital market, SmartCap actively contributes to developing the market by participating in the work of Estonian Private Equity and Venture Capital Association (EstVCA) and by supporting initiatives, projects, and events linked to the field, the goals of which are developing the local venture capital market, strengthening the community and increasing reputation and reliability among foreign investors.

    In addition to sponsorship, SmartCap also supports activities aimed at developing the market with its team’s competence.

  2. Increasing the venturesome attitude of young people, especially girls and women

    SmartCap supports initiatives and projects aimed at young people, which inspire the youth to engage in engineering, technology, technical research, and robotics. The objective of the sponsorship projects is to support the development of future generations and we prefer initiatives that are directed at increasing the number of women in entrepreneurship and knowledge-based fields.
     
  3. Cooperation with Estonian universities

    In cooperation with Estonian universities, SmartCap contributes to scientific progress, future experts and researchers of STEM subjects, and the quality of teaching and research. Our goal is to support the development of knowledge-based entrepreneurship and the new specialists required for creating innovation and technological developments. We support the motivation of students and teachers to do research in the fields of engineering, technology, technical research, and robotics by supporting respective MA and doctoral research with scholarships.
     
  4. Activities directed at developing technological and knowledge-based business ideas

    SmartCap supports activities, projects, and competitions aimed at developing and supporting technological and knowledge-based business ideas. We prefer regular (e.g. annual) and long-term initiatives.

Submitting a sponsorship application

Please submit your sponsorship applications in writing. In the application, please note the following information:

  • The applicant’s name and contact details, name of the organisation being represented.
  • Introduction to the project team and a description of the experience of the team members regarding implementing similar projects.
  • Short description of the project, including the objective, target group, time and place, expected number of participants, etc.
  • The amount of the desired sponsorship and precise and clear overview of how these funds shall be used.
  • Expected results and description of the project’s impact.
  • Overview of advertising outputs offered to the sponsor.

Please send your applications to marina.bachmann@smartcap.ee.

We shall review the applications and get back to you within a month.