The Estonian Venteure Capital Association explains its impact:
This will be a highly significant vehicle, in a region where 80% of private equity deals are below EUR5 million in size. It will invest the capital into several regional funds, which will in turn raise at least another EUR100 million of private capital. The total pool of new private equity capital in the market will therefore be at least EUR200 million with the first investments to begin in 2013.
The EIF is investing €40 million, while Lithuania’s Investment and Business Guarantees (INVEGA), Latvia’s Guarantee Agency and Estonia’s KredEx are allocating EUR 20 million each.
The Baltic Course reports that Lithuanian Prime Minister said at the signing ceremony, “The establishment of BIF is yet another step discussed many times in the Baltic Council of Ministers. I am glad that today we are making it a reality. I hope that the establishment of BIF will make the entire Baltic area even more attractive for innovations,”
Top image CC liscensed by Payorivero on Flickr.