Baltic Innovation Fund (BIF)

BIF logos

What is the Baltic Innovation Fund?

The Baltic Innovation Fund (BIF) is a Fund-of-Fund initiative launched by the EIF in close co-operation with the Governments of Lithuania, Latvia and Estonia in 2012 to boost equity investments made into Baltic Small and Medium sized enterprises (SMEs) with high growth potential.

BIF represents a EUR 40 million investment by EIF with each Baltic Government committing EUR 20 million through their respective national agencies (INVEGA in Lithuania, KredEx in Estonia and LGA in Latvia).

BIF will invest EUR 100 million into private equity and venture capital funds focusing on the Baltic States over the next four years through a ‘fund of funds’ process to attract additional private finance and implement the best market standards for equity investing in businesses. This trans-national process provides a real opportunity to further develop the Baltic Private Equity and Venture Capital market and to stimulate employment and competitiveness in the region.

What is BIF's Investment Strategy?

BIF is intended to build a balanced portfolio of venture capital and private equity investments with an investment focus on the Baltic States. The balance will cover the aspects of instrument focus, vintage and an appropriately diversified number of underlying transactions.

EIF, as manager of the BIF, openly considers the following investment opportunities:

  • Investments into venture capital and private equity funds (including mezzanine funds) with proven experience and insight into the Baltic market;
  • Co-investments alongside business angels, family offices and institutional investors into early to growth phase SMEs. BIF co-invests with selected investors which are either domiciled in the Baltic States, provide for a relationship with the Baltic ecosystem or can consider investments into the Baltic States.

Furthermore, other innovative instruments, for example, technology transfer investment vehicles may also be considered for investment but only if appropriate quality investment opportunities would be identified.

Are you a fund manager interested in partnering with us under BIF? 

Both funds and direct co-investments need to satisfy a strict set of investment criteria applied under EIF’s normal investment process. In terms of direct co-investments, we look for a qualified and credible partner, with extensive experience in the specific deal and whose reputation is at stake when undertaking any single investment. You are eligible to apply to become an EIF Financial Intermediary under BIF provided you fulfil, amongst others, the following criteria:

  • Your investment strategy is focused on the Baltic States. Please outline how the proposal fits in the current competitive landscape, what sector and stage is the fund targeting and why, how does it take into account the know-how of the team;
  • Your team is well-balanced, with team members complementing each other in terms of skills and experience, with a proven ability to work together.
    Furthermore, your team is either located/domiciled in the Baltic States or, in case of international venture capital/private equity funds focusing on the Baltic States an appropriate local team should exist or would be established in, the Baltic States. Emerging and/or first time teams would be also considered;
  • Your track record proves adequate experience in the targeted investment area; previous investment successes and failures will be carefully analysed in order to understand the investment capabilities of the team;
  • The fund is capable to attract further private finance from  other investors, e.g. pension funds, which will at least double the amount of investment capital required;
  • The fund size is commercially viable to ensure the team’s stability and the fund’s investment capacity;
  • The legal and tax structure of the fund should be clear and include market standard terms and conditions;
  • All stakeholders in a fund have their interests aligned.

Read more about the details to include in your investment proposal

How does the BIF Investment Process work?

About 3 to 6 eligible Fund Managers, across a 4 year investment period, can receive BIF resources to be invested into innovative high-growth SMEs and small MidCaps. The Fund Managers can already submit investment proposals to EIF, and BIF’s investment period will start from January 2013 onwards. Should the investment proposal meet the criteria listed above, your team will pass several screenings before the EIF undertakes to start a full due diligence process and brings the proposal further through EIF’s approval steps.

Contact

Martins Jansons, Tel.: (+352) 426 688 381, e-mail: m.jansons@eif.org


 
 

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