Yes, that’s true - 160 projects or start-ups in two years time. Isn’t it great for a small country like Estonia?

Lot of people consider Estonian Development Fund as mainly thinktank. But sending your business plan there to apply for venture capital funding is indeed worth a shot.

Heidi Kakko, fund’s investment expert says they have gone through  160 business plans all together. Yet only five investments are actually in the portfolio:

• metal constructions & machinery designer-manufacturer Ilmarine
• wind turbine developer Goliath Wind
• automated parcel service provider SmartPost
• virtual fitting-room developer Fits.me
• United Dogs & Cats - social network of pets

“Although we are state-funded, we play by the market rules,” Kakko says. “We include private investors into each investment we make.”

Which qualities make a start-up attractive for Estonian Development Fund? Kakko: “Interesting technology, strong team, global ambitions and export-orientation. Too often we see that IT companies have no answer to the fundamental question: how will you earn money?”

Estonian Development Fund would like to finalise 6-8 investments in a year and invest in total 100million EEK. Yet, they have failed to reach that goal, since majority of applications are insufficient and have been rejected.

How can Estonian Development Fund be of help for start-ups? Look at the video, where Kakko explains how.

The post was made in cooperation with Estonian Development Fund