Practica Capital, a venture capital firm rooted in Vilnius and committed to fostering the growth of Baltic startups, has announced the successful closure of its third fund, Practica Venture Capital III, amassing €80 million. This fund, the largest in the firm’s history, is set to bolster early-stage founders in the Baltic region, positioning Practica Capital as a leading seed fund in the area.
Practica Venture Capital III, which is threefold the size of its preceding fund, aims to bridge the funding gap identified in the evolving Baltic ecosystem. Arvydas Bložė, a partner at Practica Capital, emphasized the importance of domestic capital in early-stage European ventures and hailed the new fund as a game-changer for venture capital in the Baltics.
Advertisement
Strong Backing from Institutional Investors
The final closing of Practica Venture Capital III saw significant support from cornerstone and institutional investors, including the European Investment Fund (EIF), the European Bank for Reconstruction and Development (EBRD), SEB Investicijų Valdymas, and Investicijų ir Verslo Garantijos (INVEGA), with Swedbank Investicijų Valdymas and Swedbank Investeerimisfondid acting as anchor investors. Over 80% of the fund’s capital comes from institutional sources, with more than 70% from returning commitments. Notably, individual LPs, including co-founders of Lithuanian unicorns Vinted and Nord Security, have also contributed, showcasing broad support for the fund.
EIF’s Endorsement and the Future of Baltic Ventures
Marjut Falkstedt, EIF Chief Executive, highlighted the fund’s potential to become one of the largest early-stage funds in the Baltics, backed by highly skilled fund managers. Supported by the InvestEU programme and the Baltic Innovation Fund 2, Practica Venture Capital III is poised to strengthen the region’s venture capital ecosystem and ensure a steady flow of seed funding for local entrepreneurs.
Empowering Tech Startups Across the Baltics
Practica Capital’s focus remains on empowering early-stage tech startups in Lithuania, Latvia, and Estonia, with the capacity to invest up to €3M initially and up to €8M throughout the fund’s lifespan. Already, over €10M has been deployed in six companies, including Heavy Finance, Sentante, Amlyze, and Breezit, with three more in the term sheet stage.
Donatas Keras, founding partner of Practica Capital, expressed excitement about the firm’s expanded team and its ability to serve the Baltic ecosystem more effectively. With over €130M in assets under management and a portfolio of over 60 companies, Practica Capital is a key player in technology investments, specializing in SaaS, Marketplaces, and Deep/Industrial tech, and is home to emerging category leaders like PVcase, TransferGo, and Interactio.
This new fund marks a significant milestone for Practica Capital and the broader Baltic startup ecosystem, promising to drive innovation and growth across the region.
