Minister of Economy: ‘Confidence in venture capital funds strengthened in Lithuania'

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2017 01 31

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At the 31 January 2017 meeting with Troy Weeks, Senior Banker at the European Bank for Reconstruction and Development (EBRD), and investor Michael Parry, Minister of Economy Mindaugas Sinkevičius discussed the cooperation of the EBRD with UAB INVEGA (Investment and Business Guarantees) as part of preparation for the implementation of four new risk capital funds the manager selection process for which was announces on 25 January 2017 by the Ministry of Economy.

According to the Minister of Economy, cooperation in selecting four new managers of venture capital funds between the EBRD, which has substantial experience and expertise in venture capital investments, and UAB INVEGA will increase more private investors’ confidence in future funds.

The venture capital fund ’Business Angels Co-investment Fund’ will make investments to small and medium-sized enterprises (SMEs) in their preparatory or subsequent stages of development. The venture capital funds ‘Development Fund I’ and ‘Development Fund II’ will be investing into SMEs seeking to get access to new markets or sectors and to create new products.  The venture capital fund ‘Early Stage and Development Fund II’ will be investing  into innovative SMEs with high growth potential  in their early development stages.

In accordance with the agreement signed back in 2016 INVEGA together with the EBRD will cooperate in all stages of implementing venture capital measures, including testing and assessing the fund managers in the selection process and carrying out the functions of advisory committee for the fund in negotiations on legal arrangements relating to the venture capital funds.  

EUR 58,8 million of the EU structural support funds has been allocated for the implementation of the above said measures in 2014–2020.

The Minister of Economy thanked the EBRD representatives for their efforts to improve the venture and private capital ecosystem and to increase the competitiveness of the Lithuanian business.

According to the data of November 2016, the EBRD has funded 78 projects in Lithuania and has invested EUR 654 million of investments.

The EBRD was founded in 1991 with the aim to assist the Central and Eastern European countries in implementing market economy reforms. The EBRD is owned by 65 countries as well as two international organisations — the European Commission and the European Investment Bank. The EBRD is operating in 36 countries of Central and Eastern Europe and the Southern and Eastern Mediterranean. Lithuania is a member of the EBRD since 1992. 

The EBRD aims to promote economic reforms to accelerate transition towards open and democratic market economy. The Bank funds projects in the fields of agriculture, energy efficiency, financial institutions, production, local environmental infrastructure, natural resources, energy, ownership, tourism, small and medium-sized enterprises, telecommunications, information technology, media and transport.