Capitalia, a leading provider of financing for businesses in the Baltic States, has announced its investment in the Estonian venture capital fund, Siena. This strategic partnership aims to enhance the growth of technology companies in the Baltic region through secondary investment strategies.
Siena specializes in purchasing shares from early investors, employees, and founders of fast-growing technology companies in the Baltic region. The fund has already made investments in renowned companies such as Bolt, Skeleton, Oura, Printify, and Veriff, establishing a reputation for creating an “index of the best startups” across the Baltics and Nordics.
With a target size of EUR 50 million for its second fund, Siena is poised to capitalize on attractive investment opportunities within top-performing technology companies. Data from western markets indicates that funds employing secondary investment strategies have historically yielded better returns with lower volatility compared to traditional venture capital investments. This is supported by the early results of Siena`s fund I, whose current performance puts the fund as the top 10% of VC funds in the world from the 2021 vintage.
Siena fund is backed by one of the most recognized VC fund of funds in Europe – Isomer Capital, as well as European Bank for Reconstruction and Development (EBRD) alongside various regional institutional and private investors. Capitalia has expressed confidence in Siena’s management team, which consists of experienced investment managers Rando Rannus, Lauri Isotamm, and Rain Tamm. In addition to investing its own capital, Capitalia has successfully pooled over ten private investors to create a feeder fund aimed at facilitating investments in Siena’s second fund.
This feeder fund initiative allows investors access to opportunities typically reserved for institutional investors or high-net-worth individuals, with a minimum investment set at a low EUR 25,000. New investors can still participate in this investment opportunity by the end of year 2025. This follows Capitalia’s previous success in establishing a feeder fund for Change Ventures, another leading early-stage fund management company, where nearly EUR 1 million was invested.
Capitalia is dedicated to fostering growth across the Baltic States. To date, it has funded over 5,000 companies with more than EUR 100 million invested in their development. Beyond loans and venture capital, Capitalia also offers professional consulting services for business sales and financing solutions while managing several alternative investment funds focused on bonds, technology companies, and private debt.