Estonian startup ecosystem and capital supply

1. Where’s the catch?
Heidi Kakko, Managing Director, EstBAN

2. Wall of Fame
#estonianmafia

3. Fundraising by EST tech startups
*Estonian crowdsourced database
5 690 000
3 958 000
7 304 831
4 315 000
18 530 867
8 154 000
20 700 500
32 354 041
70 805 333
0
10 000 000
20 000 000
30 000 000
40 000 000
50 000 000
60 000 000
70 000 000
80 000 000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Funding of Estonian Startups
Capital from Estonia (EUR) Total raised capital (EUR)

4. > Small number of active investors
> Scarcity of private money in early stage
> Deficit to make follow-on investments
> Low level of funds raised and investments made
> Business angels are activating, but still weak
> Investor-readiness to be improved
Local venture market is immature

5. Estonian startup eco-system
Funding
Mentoring
Time

6. > 2007 Estonian Development Fund starts operating
> 2008 EDF’s first investments with private co-investors
> 2008 Brain Hunt Business Plan competition starts
> 2009 EDF supports Garage48 first hackathons
> 2009 EDF opens SeedBooster and accepts GrabCAD
> 2009 EDF initiates to establish Estonian BAN / VCA
> 2010 First concept paper on Startup Estonia program
> 2012 EDF invests as a lead investor into SWG
> 2012 SmartCap is established to prepare for a new VC model
> 2012 EDF co-investors initiate EstBAN (12 out of 25)
> 2014 Startup Estonia program launched
> 2015 New public Fund of Funds established, SmartCap privatized
Developing EST startup eco-system

7. > Entrepreneurs / Founders
> Local supply of capital in early stages
> Network and contacts
> Technology transfer (skills and financing)
> International staffing for C-level
What does a country need
to flourish startups?

8. > Rise of accelerators, turning into funds
> More money to the market
> Tougher competition between funders
> Business Angel Co-investment funds
> Cooperation between BANs
> Urge to increase pipeline for quality dealflow
> Sourcing deals cross-border
> Larger VC funds entering with small tickets
Trends of Early Funding?

9. Venture capital supply
Ministry of Economy and
Communication
KredEx
Estonian
Development Fund
AS
SmartCap
Startup
Estonia
Program
Early Fund
II
25 MEUR
Early Fund I
8 MEUR
Accelerator
pre-seed
funds
ca 6-10
MEUR
EAS
National
Fund of
funds
60 MEUR
Baltic
Innovation
Fund
100 MEUR
Business
Angels Co-
Inv Fund
15 MEUR
Early stage
Venture
Fund
30 MEUR
PE
Smallcap
Fund
15 MEUR
Regional
Venture
Fund I
50-60 M
Regional
Venture
Fund II
50-60 M

10. In EstBAN we welcome all positive minded
people with a passion for investing their time
and funds into startups

11. EstBAN partners and supporters

12. Thank you for your attention!
Heidi Kakko
Contact us for further information:
heidi@estban.ee
estban.ee