In a strategic move aimed at fueling regional growth and innovation, Raft Capital Management has unveiled its latest €50 million investment fund. This initiative by the Vilnius-based venture capital firm is set to empower burgeoning businesses across the Baltic States, while also eyeing opportunities in the Nordic countries and Poland.
Raft Capital, known for its robust portfolio in growth and expansion-stage companies, emphasizes a broad investment approach across various industries. The fund is led by a seasoned team licensed by the Bank of Lithuania, comprising Artūras Gegužis, Andrejus Boicovas, Gintautas Galvanauskas, and Imre Visse from Estonia.
“Our focus is on agile small and medium-sized enterprises within the Baltic region,” stated Artūras Gegužis, highlighting the fund’s preference for firms demonstrating robust growth metrics. These include companies involved in manufacturing with a strong export footprint, innovative product creators, service providers, and other dynamic enterprises.
With investments ranging from €2 to €10 million per company, Raft Capital targets businesses boasting annual revenues between €3 and €50 million, and EBITDA ranging from €500,000 to €5 million.
Gegužis emphasized the strategic importance of bolstering Baltic enterprises amidst an economic landscape outpacing EU averages. “There is a clear need for increased equity capital to support local business expansion,” he remarked, underlining the fund’s role in fostering sustainable long-term growth and attracting reputable investors.
In addition to the Baltic States, Raft Capital is poised to explore synergistic investment opportunities in the Nordic region and Poland, leveraging potential benefits for its portfolio companies.
Funding for the €50 million initiative includes backing from the European Investment Fund, INVEGA, and pension plans managed by Luminor investment firms across Lithuania, Latvia, and Estonia, alongside private investors.
Looking ahead, Raft Capital anticipates a future fund expansion with plans for an additional €20-30 million infusion, further solidifying its commitment to driving regional economic vitality through strategic investment.
