How to raise capital for startup: Investment landscape in Estonia
The startup ecosystem in Estonia is booming! No matter how different these young companies may be, there is one thing that is vital for each one of them — investment. In this research, we would like to share information about Estonian grants, accelerator programs, and funds that could help your startup to attract investment. But first, let's take a quick look at the startup ecosystem in Estonia.
According to the study by Startup Estonia, from 2016 to 2020 the amount of investment in Estonian startups increased by more than 4 times: from 106M to 440M EUR. According to the same study, the amount of turnover generated by Estonian startups has also significantly risen during the same period. Indeed, it's a great rise that lets Estonian scale-ups get high opportunities in business development. Note that even in harrowing 2020, the amount of investment was as high as never before and struck the number of 400M EUR per year.
At the same time, it's highly important to mention that these startups raised investment differently.
With this in mind, Enty's team has prepared the research on the investment landscape for Estonian startups. While conducting it, we have focused on 3 main fundraising sources that focus on the Estonian Market or Baltics:
Government programs and grants for Estonian startups;
Crowdfunding platforms that consist of the prime part of investors from Estonia and the Baltics;
The list of VC funds that actively invest in Estonian projects.
1. Government Programs and Grants
Estonia is known to host foreign startups and companies. However, they also tend to actively support local projects. There are several programs and grants launched by the Estonian government, here's one of it:
The state-run public institution20 companies
Investment into technology-intensive SMEs with strong international growth potential
It is a great option only for those who are developing products for the Estonian market
Portfolio of 20 companies
2. Crowdfunding Platforms
If you do not want to participate in competitions for investments, you can post your startup's description on these portals and receive some money from investors around the whole world. Try to explain why your startup is the best and why this one can change Estonia and, perhaps, Europe!
The state fund of development
You can register your project on the site with a description of the details, features, location
A potential investor can give you a different sum of money
Diverse sources of capital including Angels and VC’s
Investors from 134 countries
Experts help to build a compelling campaign
The first participation-based crowdfunding platform in the Baltics
You can register your project on the site, with its detailed description, setting the problem and ways to solve it, business model, risk and mitigation, etc.
Suit all type of enterprises
The duration of the campaign is, in general, 30-45 days
3. Accelerators and Business Incubators
Do you feel that you have enough power to win other business ideas? Do you want to upgrade and improve your startup? You can participate in the following accelerators and incubators! Remember: all of these programs have different conditions and deadlines. Check them!
Project stages: Early-stage/Ready to grow
Project types: AI/ML applications, Fintech, Mobility, Deep Tech, IoT, Robotics, SaaS startups, globally (interested in, but not limited to, these types)
Project stages: Early-stage (a company with initial traction, a passionate and solid team)
Project types: B2B, Cyber Security, Enterprise Software, FinTech, SaaS, Software, Sustainability
Project stages: The only condition is that the startup should not make a profit during the previous 6 months
Project types: There are no limits to the areas of business
Project stages: Early-stage (Pitching competition is open for all promising startups), Ready to grow (Take your startup to the next level with specialized workshops)
Project types: There are no limits to the areas of business
Project stages: Early-stage (Pitching competition is open for all promising startups), Ready to grow (Take your startups to the next level)
Project types: The information is not available
Prototron
Project stages: Early-stage
Project types: All fields, especially: Greentech, Digitalization of Industry, New materials, Health-tech, Fintech
4. Private Estonian Funds
You do not have enough money to open a startup, but you want to? Look at this list of the best private Estonian funds and find the ones that are perfect for you! Try to recommend them yourself due to get approval.
Average Check: 2-4 million euros;
Stages: Early-stage/Seed;
Types: Finance, Financial Services, Venture Capital
Average Check: 600 000 euros;
Stages: Early-stage;
Types: Artificial Intelligence, B2B, Finance, Financial Services, Machine Learning, SaaS, Software, Venture Capital
Average Check: 551 724 euros;
Stages: Early-stage;
Types: Venture Capital
Average Check: 1-3 million euros;
Stages: Late seed and A-round;
Types: Finance, Financial Services, Venture Capital
Average Check: 1 825 000 euros;
Stages: Pre-seed/Seed;
Types: Advertising, Information, Technology, Internet, Mobile, Software
Average Check: 50 000 euros;
Stages: Seed;
Types: Software, Venture Capital
Average Check: 1 642 857 euros;
Stages: Early-stage;
Types: Finance, Financial Services, Venture Capital
Average Check: 20 000 - 500 000 euros;
Stages: Seed;
Types: Angel Investments, Financial Services, Venture Capital
Average Check: 1 500 000 euros;
Stages: Early-stage;
Types: B2B, Marketplace, SaaS
Average Check: 963 000 euros;
Stages: Early-stage/Seed;
Types: Venture Capital
Those are only some of the ways a startup from Estonia or from the Baltic region can attract funding. Numerous global funds, accelerators, or angel investors might suit your startup as well. But these ones — the most Estonian-centric which means that it might be the best choice for your Estonian startup!
Enty is glad to take part in the development of the Estonian startup ecosystem. For the sake of that, we will continue to upgrade our tools and create new ones that will help Estonian startups to operate with ease. We are an Estonian startup. We know what you need like no one else.
Staying your best friend,
Enty
