Estonia to double a €50M defense industry fund

The Estonian government has decided to double a €50M defense industry fund to €100M by 2025, backing a proposal by Minister of Economy and Industry Erkki Keldo. The first investments are planned for early 2025. 

In May 2024, the Estonian government announced the launch of a new defense fund. It aims to invest directly and through private funds in companies developing defense-related and dual-use technologies. The fund will focus mainly on startups operating in Estonia, and its manager will be the state-owned investment company SmartCap.

The additional €50M will be used to reach a broader target group and to launch several new private sector funds targeting defense industry companies. According to Erkki Keldo, investments in defense fund will help Estonian defense companies develop their products that will increase Estonia's security and also help Ukraine. He also said that it is difficult for dual-use companies or those developing lethal technologies (which include weapons systems such as missiles, firearms, and bombs designed to kill or incapacitate enemies) to attract investments. In total, Estonia plans to allocate €400M over four years to provide military aid to Ukraine.

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Fintech Monese merges with UK-based company Pockit

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London-based fintech Monese , founded by Estonian entrepreneur Norris Koppel, has merged with UK-based company Pockit . The deal will see Monese's minority shareholder, Estonian Tera Ventures , take a stake in Pockit. In addition, Pockit and London-based VC Puma Growth Partners will invest £15M in the integration of the two fintech companies. Further financial terms of the deal were not disclosed. 
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