In 2022, capital raised by Baltic venture funds reached €298M

In 2022, capital raised by Baltic venture funds reached €298M, which was 130% more than in the same period of 2021. Baltic funds completed over 220 transactions, with year-over-year (YoY) growth of 44%. They have invested €212M into Baltic companies. In 2022, the funds made 50 exits, and 153 investments outside of the Baltics region. 

The total number of active funds increased by 14% compared to 2021, reaching 84. 12 new VC funds appeared, operated by existing fund managers. The larger ones are Contrarian Ventures Net Zero Fund, Practica Venture Capital Fund III, Trind Ventures Fund II, Superangel Fund II, and Specialist VC Primary & Secondary Fund II (formerly United Angels VC).  

In 2022, €200 million was raised by funds from non-government sources. €82M from private individuals, €46M - from pension funds, €32M - from funds of funds, etc. And only €44 was raised from government agencies.

Baltic energy and environmental sector received the largest amount of investment, €57M, which is 27% of total investments. This was followed by the computer and consumer electronics sector, which raised €39M, and consumer services sector (€32M).

Talking about Estonian companies, they received €76M across 103 deals in 2022. Private equity (PE) investments contributed to 61% of total investment in Estonia. In the last year, the most popular sector was computer and consumer electronics, which secured €27M. There were five buyout exits and one growth exit.

Lithuanian companies received €119M in investment across 66 deals. PE investments made up 85% of total investment, which is over three times higher compared to 2021. The most popular sector was energy and environment, which raised €35M.

Latvian companies raised €17M across 53 deals, which is 21% more than in the same period of 2021. PE investments made up 68% of total investment into Latvia. The energy and environment sector raised the most capital in 2022, with a total of €4M.

The report was made by KPMG Baltics Deals team, The Estonian Private Equity and Venture Capital Association (EEVCA), Latvian Private Equity and Venture Capital Association (LVCA), and Lithuanian Private Equity and Venture Capital Association (LT VCA).