General Principles

Objectives and focus

The objectives of the Development Fund's investment actions are to give a positive impetus to the development of Estonia's venture capital market. The structure of Estonia's economy is in need of eventual updating and a well-shaped venture capital market is an inevitable prerequisite.

The Development Fund introduced venture capital financing in September 2007. By autumn 2007 the Investment Division was staffed, analysis procedures and contract forms were prepared and the investment committee was assembled.

One of the tasks during its first year of operation was to get a clearer picture of Estonia's venture capital market and its shortcomings in order to specify the fund's operating focus and methods for the following years.

The first direct corporate investments were planned for 2008 and the selected companies were SmartPost and Ilmarine Engineering. Fund investments were not planned for the first year, neither are any investments currently made into seed-stage companies. Meanwhile, workshops are held to introduce the work done by the fund and bring together market players.