Baltic funds have €1.4 billion ready for new investments

Private equity and venture capital funds in Estonia, Latvia and Lithuania raised €750 million last year, a 126% increase compared with the previous year, according to an analysis prepared by KPMG.

By the end of 2025, Baltic private equity and venture capital funds had a total of €1.4 billion ready to be deployed into new investments. According to the analysis, €670 million of this is expected to be invested in the Baltics over the coming years. KPMG notes that last year showed a very positive fundraising trend and that Baltic funds are currently well capitalised.

At the end of 2025, there were 116 private equity and venture capital funds operating in the Baltics, ten more than a year earlier. Last year, the funds invested a total of €480 million, of which €144 million was directed into companies in Estonia, Latvia and Lithuania. In total, 243 deals were completed, seven fewer than the year before.

Madis Lehtmets, CEO of the Estonian Private Equity and Venture Capital Association (EstVCA), said that capital follows ambition. “An investment reserve of €1.4 billion is impressive, but a large share of this capital has an investment mandate that extends far beyond the Baltics. The question is whether our region has enough ambitious companies to attract investors. Today, we need to focus on laying the foundations for a new generation of companies to emerge, because capital follows ambition, not imposed borders,” Lehtmets said.

The analysis highlights that last year, the information and communication technology sector attracted the greatest interest from investors, receiving €40 million. It was followed by the energy and environment sector with €37 million. Private equity funds invested mainly in energy and environment, life sciences and ICT, while venture capital funds directed their largest investments into ICT, financial services and life sciences.

Baltic startups raised a total of €580 million in 2025. Estonian startups raised €220 million, Latvian startups €131 million and Lithuanian startups €229 million. Local funds contributed €71 million, accounting for 12% of the total capital raised by startups.

The largest investment deal in the Baltics was secured by Lithuanian cloud infrastructure automation startup Cast AI, which raised €95 million. The second-largest investment went to Aerones, a Latvian company developing maintenance robots for wind turbines, with the deal amounting to €54 million. The third-largest deal was closed by Estonian startup Pactum, which raised €47 million.

The flagship event for the Baltic private equity and venture capital sector will be the Baltic VCA Summit, taking place on 27–28 August and hosted by Estonia this year. For two days, the summit will turn Haapsalu into the main meeting place for the leading players in the Baltic private equity and venture capital sector, where they will discuss the key challenges, opportunities and outlook for the period ahead. More information is available at: https://www.balticvcasummit.com/

The 2025 Baltic private equity and venture capital market overview was prepared by the KPMG Baltics team in cooperation with the Estonian, Latvian and Lithuanian Private Equity and Venture Capital Associations, with input from experts across various fields.

The Baltic private equity and venture capital market in figures:

- 116 active private equity and venture capital funds at the end of 2025

- €4.6 billion raised since 2010 

- €749 million raised in 2025 

- €1.4 billion in investment reserves at the end of 2025 

- €480 million invested in 2025, including €144 million into companies in the Baltic States 

- Baltic startups raised €580 million in 2025