SmartCap has fully committed its Green Fund allocation for fund investments, deploying 51 million euros across three greentech-focused funds since 2022, marking a major milestone in channeling venture capital toward Estonia’s green transition.
SmartCap Green Fund was launched for fund investments in September 2022 and was originally expected to remain open until mid-2026, subject to the availability of uncommitted capital.. Operating in two phases, the fund invested 51 million euros across three funds. Following the full allocation of its available capital, the investment window closed in May 2026. The fund remains active solely for the management of its existing portfolio, with only follow-on capital reserved for current direct investments.
“This is a significant milestone, not just for SmartCap, but for the entire Estonian greentech ecosystem,” said Sille Pettai, CEO of SmartCap. “When we launched the Green Fund, we set out to prove that Estonia can attract world-class fund managers with a serious greentech mandate. Four years later, I’m proud to say we’ve done exactly that.”
Three Funds, One Mission
SmartCap Green Fund backed three funds, each selected for its clear contribution to the Estonian green transition.
All three funds in SmartCap Green Fund portfolio contribute to the fund’s mission of advancing the development and commercialisation of green technologies through investments in innovative and research-intensive companies and sustainable infrastructure projects.
Through these investments, the funds expand the availability of capital in Estonian ecosystem for sustainable innovation, strengthen economic resilience, and advance the environmental objectives of the EU Taxonomy in Estonia and the broader Nordic region. In addition, SmartCap promotes cross-border deal flow, entrepreneurship and investing, helping to strengthen the regional green innovation ecosystem. “We were intentional about building a diversified portfolio,” said Pettai. “We backed an established Nordic player like Taaleri alongside emerging fund managers like 2C Ventures and Norrsken Evolve, who are generating some of the most exciting greentech deal flow in the Baltics and Nordics. That mix was by design. It’s how you build a resilient ecosystem, not just a portfolio.”
Each investment into those 3 funds ranged from 5 to 30 million euros and was always complemented by private investor participation, with SmartCap investing pari passu alongside a minimum 30% independent private investor contribution.
Sustainability as the foundation
Sustainability alignment was a key requirement for all fund investments. All funds were required to direct their investments in Estonian greentech companies or infrastructure projects toward at least one environmental objective set out in the EU Taxonomy for sustainable activities:
Investments must also comply with the “Do No Significant Harm” (DNSH) Technical Guidance (2021/C 58/01), ensuring that no financed activity undermines these environmental objectives.
SmartCap reserved the right to amend the investment terms of SmartCap Green Fund at any time and, at its sole discretion, to cancel or discontinue SmartCap Green Fund’s investments in venture capital and infrastructure funds in their entirety at any time.
See our Investment Process and Responsible Investing sections, to learn more about our approach to investing.
SmartCap Green Fund is financed by the European Union NextGenerationEU Recovery and Resilience Facility funds.