Tehnopol launches investment company Tehnopol Ventures
Tehnopol Ventures will assess the investment readiness of start-ups and manage Startup Incubator’s equity options and holdings in start-ups. As a future perspective, the fund will also start making financial investments.
Tehnopol Ventures is closely associated with the Startup Incubator, which helps early-stage start-ups grow through mentoring and business support. No financial fee is charged from start-ups for participating in the Startup Incubator program, instead a 2% equity option will be agreed upon, which will be managed by Tehnopol Ventures. Ventures will also offer a vendor due diligence service, helping early-stage investors assess the company’s finances, team, product and market potential, thus acting as a quality label.
According to Kadri Tammai, the head of the Startup Incubator and a member of the board of Tehnopol Ventures, Tehnopol Ventures is the next logical step in the long-term support of companies. “Our goal in supporting start-ups is not quick economic benefits – we are a program with a very strong sense of mission that helps startups go through the difficult initial phase of entrepreneurship. To this end, we offer a longer and more comprehensive program and, as a small investor, we will remain in a semi-active role to contribute to the next investment rounds as well, ”said Tammai.
Looking at the number of people wishing to join the Startup Incubator, Tehnopol Ventures is rapidly growing into one of the largest companies in the region with a portfolio of start-ups. According to Tammai, it enables it to be an interesting partner for both Estonian and foreign venture capital funds and is beneficial in the long run, especially for those start-ups that join the program.
However, Tammai points out that some company founders may have doubts as to whether it is reasonable to give away a piece of their company in the form of a 2% equity option. “Many who are at the beginning of their business journey get to a point where it seems that you can’t share your ideas with others because they will be stolen and therefore giving up a micro-equity of your company does not make sense. Here applies the saying that owning 100% of a company that has no value in the initial phase still means that you own nothing. Today, equity options are very common for both early-stage employees and other long-term contributors. It is rather a smart strategic decision, which is also approved by investors,” Tammai explained.
Startup Incubator’s incubation program lasts 6-12 months. During this period, the startup will go through a series of practical trainings with a dedicated key-mentor and is allowed to work in a modern open office. The program is further enhanced by additional educational events and trainings, community support and a network of contacts. You can find more about the program here.
Tehnopol Startup Incubator creates a strong growth environment for start-up companies. The growth program offers comprehensive and practical workshops and expert support from the best mentors in Estonia and Europe, with the aim of finding an initial investment or reaching export markets. Tehnopol Startup Incubator is part of the comprehensive support service of Tehnopol, the largest science and business park in the Baltics. The aim of the Tehnopol is to contribute to the emergence and growth of world-class technology companies in Estonia and to support their expansion into foreign markets by offering solutions from commercial real estate to needs-based business development services.