SmartCap is extending the investment period of the Investment Programme for Green Technology Companies to support the continuing demand for capital among green technology start-ups. Investments will now continue until 30 June 2026.
“SmartCap Green Fund has played an important role in Estonia’s greentech ecosystem since we started investing in 2023. We have seen the share of deals with greentech companies, out of all deals with technology companies in Estonia, rise from historical levels below 20% to more than 40% in 2023. By the end of 2024, SmartCap, together with private investors, has financed twelve greentech companies and supported the launch of 2C Ventures, Estonia’s first venture capital fund dedicated exclusively to green technologies,” said Sille Pettai, CEO of SmartCap.
SmartCap Green Fund aims to improve capital availability and diversify the funding supply for tech companies that develop green technologies and contribute to green transition. “We keep monitoring and assessing the local venture capital market situation and the availability of funding for greentech companies, most of them being hard tech companies with high capital requirements upfront, as scaling hardware is incredibly capital-intensive. Once again, we revise the terms of Investment Programme for Green Technology Companies and extend the deadline until mid-2026 to meet the growing capital demand.”
SmartCap is an investor providing patient capital that addresses market gaps, invests throughout economic cycles, and, with its Green Fund, has a distinct mission — to support the green transition by focusing on strategic areas with the greatest potential to address climate impact: energy, agriculture, the food industry, transport and logistics, materials and the chemical industry. “By extending the investment period, we aim to ensure continued access to capital for green technology companies amid a shifting global landscape, giving them the confidence to pursue growth and scale their impact,” Pettai added.
The size of individual investments will remain between EUR 500,000 and EUR 5 million, and as before, SmartCap Green Fund invests in companies together with private investors. Private capital must account for at least 50% of the total funding round, with at least 30% of that capital coming from new private investors for the company.
The companies interested in funding from SmartCap Green Fund can find the terms of the investment program here.
SmartCap Green Fund is funded by the European Union’s NextGenerationEU recovery fund (RRF).
SmartCap is a small fund management company, a subsidiary of the Estonian Business and Innovation Agency (after the merger of Foundation KredEx and Enterprise Estonia), registered with the Estonian Financial Supervision Authority and managing the SmartCap Venture Capital Fund and SmartCap Green Fund.