Building startups in Estonia Experience and perspectives

9 February 2015 #LGA

100 M

USD

72

million

EUR

Wall of Fame #estonianmafia

Fundraising by EST tech startups

*Estonian crowdsourced database

5 690 000 3 958 000

7 304 831

4 315 000

18 530 867

8 154 000

20 700 500

32 354 041

70 805 333

0

10 000 000

20 000 000

30 000 000

40 000 000

50 000 000

60 000 000

70 000 000

80 000 000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Funding of Estonian Startups

Capital from Estonia (EUR) Total raised capital (EUR)

> Skype legacy, heritage, dream, role-model

> Small market - think big from the start

> Other alternatives of becoming a millionaire are

limited

> Starting up has proven and made easy

> Political leadership - e-services, tax regime,

public focus

Ground for the paradise

> Small number of active investors

> Scarcity of private money in early stage

> Deficit to make follow-on investments

> Low level of funds raised and investments made

> Business angels are activating, but still weak

> Investor-readiness to be improved

Venture market is immature

> 2007 Estonian Development Fund starts operating

> 2008 EDF’s first investments with private co-investors

> 2008 Brain Hunt Business Plan competition starts

> 2009 EDF supports Garage48 first hackathons

> 2009 EDF opens SeedBooster and accepts GrabCAD

> 2009 EDF initiates to establish Estonian BAN / VCA

> 2010 First concept paper on Startup Estonia program

> 2012 EDF invests as a lead investor into SWG

> 2012 SmartCap is established to prepare for a new VC model

> 2012 EDF co-investors initiate EstBAN (12 out of 25)

> 2014 Startup Estonia program launched

> 2015 New public Fund of Funds established, SmartCap privatized

Developing EST startup eco-system

Startup eco-system

Estonian startup eco-system

Funding

Mentoring

Time

> Technology transfer (skills and financing)

> Entrepreneurs / Founders

> Local supply of capital in early stages

> Network and contacts

> International staffing for C-level

What does a country need

to flourish startups?

Estonian Business Angels Network EstBAN is an

umbrella organization for business angels seeking

investment opportunities in Estonia and its

neighboring regions.

In EstBAN we welcome all positive minded

people with a passion for investing their time

and funds into startups

> Early supply of capital has to be supported

> Public sector to initiate/support activities for the

ecosystem

> Listen to startups/founders and private investors

> Connect the local players with international scene

Lessons learnt in

developing the ecosystem

Who am I to tell you?

> Built up a VC portfolio of 18 startups

> Started SeedBooster

> Started EstVCA

> Kicked off EstBAN

> 4 X CEO

> 20 yrs of fundraising, CF and M&A

> Member of Board at 5 startups

Heidi Kakko

Managing Director

EstBAN

heidi@estban.ee

M +372 5624 9959

Skype heidikakko

www.estban.ee