TLDR: Baltic private and venture capital funds raised €778 million in 2023, a 16% increase from the previous year. The amount of dry powder still to be invested by Baltic funds is close to €1.6 billion.
Estonian, Latvian, and Lithuanian private and venture capital funds raised a record amount of capital in 2023, totaling €778 million. This marked a 16% increase from the previous year. The amount of dry powder still to be invested by Baltic funds is close to €1.6 billion. The funds have shown resilience despite geopolitical and economic challenges, attracting foreign investments more actively than before. The Baltic funds expanded their international reach, with investments made in countries such as Croatia, Ghana, Indonesia, and Australia.
The market is strong, with over 100 private and venture capital funds currently operating in the Baltic states. More funds are expanding their global reach by investing in new countries. Investment activity in Estonia was driven by venture capital funds, with the IT and electronics sector being the most attractive to investors. New funds such as Plural Fund II, NordicNinja Fund II, and 2C Ventures Fund I started operations in Estonia in 2023. The national fund Smartcap has also expanded its operations to support the growth of green technology companies in Estonia.
The Baltic Private Equity and Venture Capital Market Overview 2023 was prepared by the KPMG Baltics Deals team and the Baltic VCAs, with input from various experts. In total, 42 fund managers and over 100 funds from all three Baltic countries were involved in the preparation of the overview.
