New Baltic Innovation Fund 3 Aims to Mobilise Up to €700 Million for High-Growth Companies Across Estonia, Latvia and Lithuania

New Baltic Innovation Fund 3 Aims to Mobilise Up to €700 Million for High-Growth Companies Across Estonia, Latvia and Lithuania

(IN BRIEF) The European Investment Fund, together with Estonia, Latvia and Lithuania, has launched the €225 million Baltic Innovation Fund 3 to strengthen the region’s private equity and venture capital market and mobilise up to €700 million in total investment for Baltic growth companies. The EIF will contribute €75 million while each Baltic state provides €50 million, with the fund expected to back eight to 11 investment vehicles over five years, primarily focused on private equity growth strategies with a meaningful allocation to climate-aligned investments. Building on the success of BIF 1 and BIF 2, which have already mobilised over €1.19 billion since 2013, BIF 3 aims to attract both first-time and experienced fund managers, deepen access to long-term capital, and further develop the Baltic innovation ecosystem, with national partners SmartCap, ALTUM and ILTE playing key roles in Estonia, Latvia and Lithuania respectively.

(PRESS RELEASE) LUXEMBOURG / TALLINN / RIGA / VILNIUS, 11-Feb-2026 — /EuropaWire/ — The European Investment Fund (EIF), together with the national promotional institutions of Estonia, Latvia and Lithuania, has launched a new investment vehicle designed to strengthen the Baltic region’s private equity and venture capital landscape. The newly created Baltic Innovation Fund 3 (BIF 3) will have total committed capital of €225 million, with the EIF contributing €75 million and each of the three Baltic states providing €50 million. The initiative is expected to catalyse up to €700 million in total investments for high-growth Baltic businesses.

BIF 3 is designed to act as a cornerstone investor, supporting both first-time fund managers and established investment teams active in the region. The programme will primarily target growth-stage private equity strategies, which are expected to account for around 70% of the portfolio, with the remaining allocation directed towards late-stage venture capital. This balanced approach is intended to support companies at different stages of expansion while deepening the overall investment ecosystem.

Over a five-year period, the fund aims to back between eight and 11 investment vehicles. Up to 20% of the capital will be earmarked for climate-aligned investments, reflecting the growing importance of sustainability and green innovation in the Baltic economies. The EIF will serve as fiduciary manager of BIF 3, overseeing fund selection, due diligence, and governance processes to ensure robust investment standards.

The new initiative builds on the success of its predecessors, BIF 1 and BIF 2, which since 2013 have mobilised more than €1.19 billion in funding for Baltic companies and attracted over €900 million in private capital. These earlier programmes have played a key role in developing the region’s startup and scale-up environment, making the Baltics one of Europe’s most dynamic innovation hubs.

Marjut Falkstedt, Chief Executive of the EIF, highlighted the resilience and innovative capacity of the Baltic region, noting that BIF 3 will deepen access to long-term capital and support high-quality companies in scaling internationally.

In Estonia, SmartCap will act as the national backer of BIF 3. Its CEO, Sille Pettai, emphasised that the initiative sends a strong signal to private investors about the continued attractiveness of the Baltic market and will help ensure that promising companies can access the funding needed to compete globally.

Latvia’s contribution will be channelled through ALTUM. Its Board Chairman, Reinis Bērziņš, pointed out that public investment through BIF 3 is expected to crowd in significantly larger amounts of private capital, generating real economic activity and new growth opportunities for Latvian businesses.

In Lithuania, ILTE will represent the national interest in the programme. Tadas Gudaitis, ILTE Board Member and Head of Business Development, stressed that the joint Baltic approach creates greater investment scale, making the region more attractive to both international and domestic fund managers while reinforcing collaboration across the three countries.

Background information

About EIF

The European Investment Fund (EIF), part of the EIB Group, designs venture and growth capital, guarantees and microfinance instruments that absorb part of the risk that is taken by a wide range of selected financial intermediaries when they finance businesses, individuals and infrastructure projects, thereby improving access to finance in Europe. This encourages funds to invest, banks to lend and private investment to be crowded in to boost innovation, competitiveness and climate action, as well as improve sustainability, social impact and skills.

About SmartCap

SmartCap is Estonia’s state-owned national fund manager, with a mission to foster Estonia’s venture capital market by investing across economic cycles and addressing market segments where high-risk, disruptive technologies are being developed to ensure technological edge and resilience in Europe. Managing 500 million euros across three strategic mandates—SmartCap Venture Capital Fund, SmartCap Green Fund, and SmartCap Defence Fund – SmartCap drives innovation and economic growth as a subsidiary of Enterprise Estonia.

About ALTUM

JSC Attīstības finanšu institūcija Altum (JSC Development Finance Institution Altum) is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments – loans, guarantees, investments in venture capital funds – in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 28 January 2025 Moody’s Ratings affirmed Altum’s Baa1 long-term issuer rating, with outlook stable. The rating as well as the short-term issuer rating at P-2, the same as affirmed on 2 February 2024. ALTUM is rated by Moody’s Finance Companies Methodology, published in July 2024. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga.

About ILTE

ILTE is Lithuania’s national development bank. Through ILTE Group companies and in collaboration with other financial market participants, ILTE promotes sustainable economic development, strengthens economic resilience, and improves access to financing for businesses, the public sector, and clients in the agriculture sectors. The bank also seeks to attract private capital to support the needs of domestic businesses.

ILTE’s activities focus on high value-added projects that drive national economic growth, encourage innovation, promote sustainability and energy efficiency, support the transformation of agriculture, and strengthen competitiveness. ILTE actively participates in infrastructure development and modernisation projects.

Press contacts

Kristiina Randmaa
EIBG Press
k.randmaa@ext.eib.org
+352 4379 72894
www.eib.org/press

Press Office
press@eib.org
+352 4379 21000
www.eib.org/press

SmartCap
media@smartcap.ee
https://smartcap.ee/

Sandra Eglīte
ALTUM – Public relations manager
sandra.eglite@altum.lv
+371 26577810

Sākums

Jurgita Brazauskaitė-Incienė
ILTE – Communication manager
jurgita.inciene@ilte.lt
+370 610 25873
https://ilte.lt

SOURCE: European Investment Fund