Article from Venture Beat (Sept. 13, 2018) Today, Tera Ventures announces the first close of €21 Million in their second fund. The fund aims to invest in 25 – 30 seed-stage technology startups located in key tech hubs in Estonia, (including eligible e-residents), Finland, Denmark, Latvia, Lithuania, Poland, Sweden and the Czech Republic. The target fund size is €55 Million with a substantial amount already committed to the 2nd close which is expected in the coming months.
Tera Ventures Announces First Closing for Tera Ventures Fund II, Plans Final Close of €55 Million Seed Stage Fund in the Coming Months (Photo: Business Wire)
Tera Ventures has offices in Estonia, Finland, and California and will continue investing in born global startups ready to thrive in international markets. Initial check sizes will be between €200K – €1.5 Million per company with significant follow-on funding for select investments.
Fund II is vertical agnostic seeking digital startups creating network effects, applying machine learning, and other enabling technologies which will become the infrastructure of our future lives. Tera Ventures Fund I has a number of notable investments including GrabCAD, Cleveron, and Monese which just announced a Series B round.
Tera Ventures was founded in 2016 by Andrus Oks, Stanislav Ivanov, and James McDougall. Andrus and Stanislav have entrepreneurial backgrounds and have collectively managed three early-stage funds with nine exits, creating over €150 million in enterprise value to date. James has extensive operational experience as CEO and Managing Director for several early-stage, private and public companies where he has fundraised over €250 million from an extensive global network of investors. Complementing the team are California-based Venture Partner, Erik Anderson, who cultivated multiple cohorts of early-stage startup teams at Techstars in London and later Wise Guys in Tallinn, and Operating Partner, Martin Hendre, who has extensive institutional equity investor and asset management company management experience.
“We are committed to offering founder-friendly terms and assisting our investments with our global network of investors, industry veterans and experts. We believe this will enable our entrepreneurs the right foundation to compete on world stage and attract top-tier partners and venture capital in key markets in Europe, US and Asia to ensure the realization of their vision.” Says Andrus Oks, Founding Partner.
Limited Partners of Tera Ventures second fund include The European Investment Fund (EIF), LHV, Mistletoe Venture Partners International, as well Estonian high net worth individuals. EIF investment is made from own resources and the EstFund – an initiative created by cooperation between the Republic of Estonia and the European Investment Fund and financed under European Structural and Investment Funds.
This investment fulfills LHV’s goal to increase its position in a rapidly growing and promising IT sector, says Kristo Oidermaa, Fund Manager of LHV Pension Funds. “Our commitments to Venture Capital currently amount to 21 million euros. Estonia has a good track record for IT growth companies, and the investment in Tera Ventures Fund II gives us a great opportunity to further contribute to this sector,” explained Oidermaa.
The founder of Monese, fintech startup that announced 60 million dollars Series B funding last week, Norris Koppel says that the team at Tera Ventures has been a critical component in the success of Monese. “What they have brought to the business extends far beyond their investment. They have a deep understanding of the support that an entrepreneur needs as they their business grows and have been genuine partners throughout our journey from early stage to scale-up. We are delighted that they are a part of our team and excited for the journey ahead,” said Koppel.
About Tera Ventures – Tera Ventures is a venture capital firm based in Tallinn, Estonia and focused on exceptional founders from Estonia, Scandinavia and CEE disrupting digital space globally. Tera builds presence and networks in the markets where our portfolio companies want to expand to – the UK, the US, and Asia. With presence in Estonia, Finland, and California, Tera Ventures is supported by a global advisory network and provides portfolio companies with access to expertise and hands-on support necessary to grow from seed stage to successful exit. For more information go to: www.tera.vc
About the EIF – The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research, and development, entrepreneurship, growth, and employment. For more information go to www.eif.org
About LHV – AS LHV Pank provides banking, financial advisory, and securities brokerage services in Estonia, Latvia, and Lithuania. The company’s deposit products include demand and term deposits, securities accounts, growth accounts, and LHV funds. Its loan portfolio comprises private loans, such as home, private, consumer, car, and home repair loans; corporate loans, including micro loans, overdraft facility, working capital loans, investment loans, company acquisition financing; credit and debit cards; leasing and hire-purchase products; and trade finance guarantees. The company also provides investment advice, portfolio management, and securities trading, as well as mobile and online banking, and ATM. LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are AS LHV Pank and AS LHV Varahaldus. LHV employs about 350 people and over 131,000 customers use LHV’s banking services. Pension funds managed by LHV have about 178,000 customers.
About Mistletoe – Mistletoe is the collective impact community to empower startups and innovators to create a more human-centered and sustainable future through technology. It is comprised of founders, investors, entrepreneurs, researchers, and visionaries in the startup and venture communities who share the lofty ambition of addressing the problems humanity faces in the near and long-term future.
About EstFund – The EstFund is an equity fund of funds created by cooperation between the Republic of Estonia, KredEx and the European Investment Fund. The EstFund is financed by the European Regional Development Fund from the Operational Programme for Cohesion Policy Funds 2014-2020 in an amount of EUR 48 million, and EIF is co-investing EUR 12 million alongside through the EIF-managed resources. These funds will offer equity financing from seed to growth for Estonian SMEs via the selected equity funds.
About KredEx – KredEx is a financing institution that helps Estonian enterprises develop quicker and expand more safely to foreign markets, offering loans, venture capital, credit insurance and credit guarantees with state guarantee.