Practica Capital closes 80 million euro fund for early-stage investments in the Baltics

Practica Venture Capital III: A breath of fresh air for Baltic start-ups with the largest seed fund in the region. European Investment Bank participates in the largest seed fund in the Baltics

Vilnius, February 1, 2024 - Practica Capital today announced the closing of its third fund, which has reached its largest volume to date at EUR 80 million. Practica Venture Capital III is three times larger than its predecessor and will significantly increase the capital available for founders in the Baltics. The fund is considered to be the largest seed fund in the region to date and consolidates Practica Capital as an early stage investor across the Baltics.

The majority of early stage funds deployed in Europe are domestic. We have recognized the clear funding gap in a maturing Baltic ecosystem.

Arvydas Bložė, Partner at Practica Capital

The European Investment Bank (EIF) joined as a key investor, while the European Bank for Reconstruction and Development (EBRD), SEB Investicijų Valdymas and Investicijų ir Verslo Garantijos (INVEGA) participated as lead investors together with Swedbank Investicijų Valdymas and Swedbank Investeerimisfondid. Institutional capital accounted for more than 80% and returning capital for more than 70% of the commitments. The fund also received support from many individual LPs, including co-founders of Lithuanian unicorns Vinted, Nord Security and other successful tech companies, as well as several startups previously backed by Practica Capital.

Following the EIF's support of the 2012 vintage fund, which pioneered venture capital in Lithuania, this new fund is expected to be one of the largest early stage funds ever launched in the Baltics.

Marjut Falkstedt, Chief Executive EIF

The high number of startups and the robustness of the Baltic tech ecosystem contributed to investor interest exceeding the fund's hard cap even during the difficult fundraising environment.

Focus on early-stage tech startups

Practica will continue to play the role of lead investor and support the breakthrough efforts of early-stage tech startups in Lithuania, Latvia and Estonia. The strategy is tailored to the seed stage and can invest up to €3 million in initial tickets and support winning companies with up to €8 million over the life of the fund. The fund has already invested more than €10 million and backed 6 companies, including Heavy Finance, Sentante, Amlyze and Breezit. 3 companies are in the term sheet phase.

We are a local lead investor, evolving with the ecosystem and acting from within.

Donatas Keras, Founding Partner at Practica Capital

Practica Capital remains focused on technology investments, with a solid track record in SaaS, marketplaces and deep/industrial tech. To date, Practica Capital has more than €130 million in assets under management and has invested in over 60 companies, including emerging industry leaders such as PVcase, TransferGo, Interactio, Montonio, Ovoko, Eneba and others.