Estonian venture capital firm Superangel has announced a new €50 million fund, which will be used to invest primarily in deeptech startups from across the Baltic and Nordic countries. The company is known for supporting prominent entrepreneurs and angel investors from a technology ecosystem that is constantly overburdened.
Superangel launched its first €16 million fund in 2018. Collectively, the team behind the company has now invested in more than 100 startups worldwide. This also includes four companies that have reached a valuation of one billion dollars, and three companies from Estonia: Mobility super Boltstart identity verification verivethe #1 sales CRM and smart revenue platform Pipedrive (plus Colombian on-demand startup Rappi).
“We will continue to build on the success of this region, Estonia, as well as facilitate the further development of this collaborative model,” Veligo Utsason, general partner at Superangel, told Sifted.
Supporting the giants of the region
Over the past four years, the early Estonian company has backed some of the region’s most promising startups, including Bolt, Veriff and Starship Technologies And the Nordigin. The team cut checks between €100,000 and €1 million, largely for the founding and first rounds.
Otsason says this new fund will continue to focus on companies based on science-based, research-intensive research and development.
“What we’re doing differently with this second fund is to focus more clearly on deep technology, which are the areas where companies have a more significant portion of their intellectual property in science, technology, or meaningful engineering innovation.”
Primary investors in the new fund include SmartCap, with Superangel general partners personally committing 10% of the fund.
Meanwhile, the limited partners include serial entrepreneurs and investors such as Grunfin founder Triin Hertmannan early employee of Skype and Wise, and Kersti Kaljulaid, the former president of Estonia, who led the country between 2016 and 21.
land of unicorns
Estonia is home to the largest number of unicorns per capita in Europe, which makes it an attractive location for an early stage investor. It is also known for its highly collaborative startup scene.
In a new approach, Superangel is tokenizing up to 5% of the transferred interest for its new fund, which will be awarded to industry experts who work closely with portfolio companies to help them develop strategies and operations.
“We’ve created this super network of experts in very different fields who are willing to help companies, sometimes even saving them a lot of time and money by giving them advice — helping build sales teams, building financial models and all kinds of help early on,” says Utsason. : “Startups may need to be staged.”
“It is like saying an extra thanks to you; whoever contributes a token entitles him to a portion of the interest transferred to the fund.”
The coding process is being led by one of the Superangel portfolio companies, Koos, which is looking for alternatives to a tried and tested contributor approach to rewarding employees, outside experts, and early adopters.
“You can essentially develop an investment portfolio without investing anything other than your focus and time,” says Taavi Kotka, Co-Founder of Koos, who previously served as Chairman of the Estonian e-Residency Program Board.
Otsason admits that the details of how the token works in practice are not fully settled yet, but he sees strong potential and believes it is an approach that will be chosen by many others in the future.
Looking ahead, Otsason says they aim to make about 40 investments in total from the second fund, about ten per year over the next four years, with several investments already in the pipeline.
“Overall, I think this is a good time to make the investments,” he says of the current economic climate. “It’s always cyclical, and there are times of great optimism and there are times that bring people back to what’s really important, which is solving real problems.”
Kate Gillette is a Western-Eastern Europe correspondent. Tweet from Tweet embed