SmartCap Venture Capital Fund has made its first investment since updating its strategy at the end of last year, committing €10 million to Plural Fund II. The fund, led by seasoned operators including the co-founder of Wise, closed at €500 million.
Plural Fund II focuses on early-stage startups, particularly those raising seed and Series A funding rounds, aiming to create positive impacts and solve significant problems in industries such as healthcare and construction. In addition to capital, Plural’s partners share their firsthand experience as seasoned founders, offering mentorship and support to the startups they invest in.
Plural’s partners include successful Estonian tech entrepreneurs and angel investors: Taavet Hinrikus, co-founder of Wise, and Sten Tamkivi, co-founder of Teleport. They are joined by like-minded partners Ian Hogarth, co-founder of Songkick; Carina Namih, co-founder of HelixNano; and Khaled Helioui, former CEO of Bigpoint.
“Only 8% of European VCs have built a company before. What sets Plural apart is our entrepreneurial mindset and hands-on approach to investing, while using a unique and innovative fund model to demonstrate alignment, commitment, and engagement by the partners,” said Taavet Hinrikus.
SmartCap Venture Capital Fund’s investment portfolio includes five fund investments: Tera Ventures I, Superangel One, Superangel Two, NATO Innovation Fund, and now Plural Fund II. “For us, Plural ticks all the boxes for the new investment strategy of the Venture Capital Fund, being an outstanding venture capital fund with Estonian roots and a strong presence in our home market,” said Sille Pettai, SmartCap board member and fund manager.
She added that the investment also provides SmartCap with an opportunity to invest in a record-sized VC fund linked to their region during complicated market conditions. “At a time when investment volumes into VC funds are generally dropping in Europe, Plural creates attractive opportunities for those geared to invest,” Pettai said.
Based in Tallinn, Estonia and London, UK, Plural’s mission is to have GDP-level impact on Europe, address systemic risks and reduce the opportunity gap worldwide through the companies it backs.
Plural’s portfolio includes a mix of hardware-intensive companies such as fusion energy developer Proxima Fusion, robot delivery company Starship, and automatic bricklaying startup Monumental, as well as AI software solutions like nursing platform TetonAI, insurtech Feather, and legaltech Robin AI.
SmartCap offers private fund management companies anchor investments in order to develop the Estonian venture capital market and allow ambitious and innovative Estonian companies to grow internationally.