Estonian professional investors are extending their global reach and turning their attention to innovative sectors, according to the Estonian Private Equity and Venture Capital Association.
Madis Lehtmets, the chief executive of the association, said that private equity and venture capital funds operating in Estonia were actively pursuing new investments both at home and abroad.
“Last year, funds expanded their teams, opened offices in other countries and attracted international talent to strengthen their presence in foreign markets and deepen their expertise – including in preparation for entering new sectors,” he said in a statement.
At the association’s event “Funds on Stage”, fund managers expressed growing confidence in investing in innovative fields such as green and deep technologies, defence, energy and medicine.
While acknowledging that investment decisions remain influenced by the broader economic climate, participants struck an optimistic tone about the overall outlook. Looking ahead to 2025, they voiced hopes for fresh exits – start-ups reaching the point of sale – that would return capital to the market for funds and seasoned founders. Nonetheless, they cautioned against hastily selling portfolio companies in an unfavourable economic environment.
Few new start-ups in 2024
Fund managers also noted a sharp drop in the number of new start-ups founded in Estonia this year, prompting investors to look increasingly beyond national borders for fresh opportunities.
While last year saw active investment in new ventures, Estonian funds also made follow-on investments in their existing portfolios to support continued growth. Portfolio companies were successful in attracting international capital in 2024 – a trend expected to continue as more local firms reach maturity and seek further funding from both domestic and foreign investors.
Turning to their priorities for 2025, fund partners highlighted their commitment to backing the next generation of founders, with a growing focus on working with young people – including active investment initiatives in Ida-Viru County.
The Estonian Private Equity and Venture Capital Association represents private equity and venture capital firms and related service providers operating in Estonia.
