The European Investment Fund (EIF) is teaming up with the national promotional institutions of Estonia, Latvia and Lithuania to launch a “Baltic Innovation Fund 3” (BIF 3) – a €225 million initiative to boost the region’s private equity and venture capital market. The EIF will commit €75 million and each Baltic country will provide €50 million. With a strong innovation ecosystem, the Baltic region remains one of Europe’s most dynamic hubs for startups and scale‑ups.
BIF 3 aims to anchor both first‑time and experienced fund managers and is expected to mobilise up to €700 million in total investments in Baltic growth‑stage businesses. The initiative will seek to develop a portfolio comprising around 70% private equity growth strategies, with the remainder going to late‑stage venture capital.
The goal of BIF 3 is to support 8 to 11 funds over five years, with up to 20% dedicated to climate‑aligned investments. The EIF will act as fiduciary manager, overseeing fund selection, due diligence and governance.
The initiative builds on two previous initiatives – BIF 1 and BIF 2 – that
since 2013 have mobilised more than €1.19 billion for companies in the region. The first two initiatives also attracted over €900 million in private capital.
“The Baltic region has shown remarkable resilience and a strong appetite for innovation,” said
EIF Chief Executive Marjut Falkstedt. “Building on our very successful prior collaboration, we’re looking to deepen the market with long‑term capital that helps high‑quality companies scale and realise their ambition.”
The BIF 3 backer in Estonia is SmartCap. “We are committed to ensuring that our region's most promising companies have access to the growth capital they need to compete on the global stage,” said
SmartCap Chief Executive Officer Sille Pettai. “The new fund is a clear signal to private investors that the Baltics remain an attractive and resilient market and that we continue to address the critical financing needs of companies seeking to grow and scale.”
The Latvian contributor to BIF 3 is ALTUM. “BIF 3 is a significant step towards expanding access to long-term financing for Baltic companies,” said
Altum Board Chairman Reinis Bērziņš. “Experience shows that every euro invested in the fund attracts several times more financing for companies, creating real economic activity and new opportunities. This initiative is a good example of how public financing can work together with private capital.”
The Lithuanian partner is ILTE. “By working together, Lithuania, Latvia and Estonia create a larger and more attractive investment scale, enabling the region to attract both international and Baltic fund managers, mobilise greater private capital and open up new growth opportunities for Baltic companies,” said
ILTE Board Member and Business Development Division Head Tadas Gudaitis. “Like its predecessors, BIF III provides a practical and effective way to pool resources, share risk and further strengthen the innovation ecosystem across the entire Baltic region.”
