Four teams have been invited to dialogue in accelerator procurement organized by Fund KredEx and SmartCap
According to the CEO of KredEx, Lehar Kütt, the aim of the accelerator funds is to provide capital and acceleration services for startups in their early stages in order to support their development. “It is important to create favourable environment for fast development of new companies and improve their financing opportunities in all development phases. For startups, contributions of investors to the development of the company in the form of knowledge and contacts are as important as capital. So far, SmartCap has performed this role well. In the future, the opportunities for the entrepreneurs will expand even by capital provided by the accelerators and due to sub-funds starting their activities under EstFund,” he said.
According to Management Board member of SmartCap and Head of Startup Estonia, Mari Vavulski, the interest for the call was remarkable. “Terms for participating in the call were attractive but demanding since only limited number of experts in Estonia can establish and run accelerators. The qualified teams have provided the accelerator services before, they have past practice of managing start-up companies and raising investments. In addition, they have received already an expression of interest from private investors for investing capital to the extent of 360,000 euros to the fund,” she said.
According to the terms of the call, the future accelerator fund managers have to raise private equity in addition to the state risk capital in the extent of at least 30% per total volume of the fund. Each fund needs to have certain focus. Preferred areas are ICT, health technologies and increasing the value of resources.
KredEx and SmartCap expect the teams to be ready for further negotiations by February 28th regarding different solutions for accelerators. The winners will presumably be declared by the end of August.
Call for accelerators is the next step at restructuring the former investment activities of the Estonian Development Fund and developing the new investment direction of KredEx. As the result, Early Fund II, which is managed by SmartCap, continues as the fund of funds implementing current investment strategy and investing further in other investment funds that make investments in startups.
Ms Mari Vavulski
Management Board member of SmartCap and Head of Startup Estonia
+372 5326 8116