Social enterprises in the Baltic States are addressing pressing issues but often lack the financial support needed to sustain their operations and scale their impact over the long term. Meanwhile, the social finance markets in Estonia, Latvia and Lithuania are still in early stages of development - the availability of impact funds in the region is limited, and social enterprises struggle to access private finance for growing and scaling their impact.
Over the period of 30 months, the project partners will work towards launching a new impact fund while also increasing the maturity of 20 SEs to take on investments and connecting them with potential investors through a transnational capacity building programme. The long-term goal is to increase access to finance for social enterprises in the region, enabling them to grow and increase their social impact.
How we’re making it happen:
1. Mapping and analysis
The project begins with a series of analytical tasks to help shape the new fund and the Investment Readiness programme. The initial phase will include a detailed market assessment of the Baltic social finance landscape, a demand and supply side analysis, including the readiness of Baltic investors to make impact investments.
2. Establishment of the new impact fund
Based on the findings of the analysis phase, we will make key decisions about the likely objectives, size, legal structure and other key aspects of the new impact fund. By the halfway point of the project, we will have a detailed strategy in place, and an MOU with potential impact fund partners, with fundraising and eventual launch then becoming the main focus of the project.
One of the challenges for Baltic social entrepreneurs and impact startups has been access to investment capital that would look beyond financial returns and also consider the beneficial social or environmental effects that go along with the investment. Therefore, as part of Impact Baltic, we are seeking to set up a new social finance instrument that would fill a market gap.
3. Investment Readiness programme
In parallel, we’ll be recruiting 20 Baltic social enterprises to join the pilot of a new transnational capacity development programme that will equip them with the skills, knowledge and connections needed to attract investment and scale their social impact.
It’s fantastic to see growing support for social enterprises in the Baltics, with more programs helping early-stage ideas to take off. However, there’s a critical gap in support for established social enterprises—especially when it comes to securing funding and preparing for investment. The Investment Readiness programme is going to fill this void, equipping social enterprises with the tools and guidance they need to scale their impact and attract investors.
Sounds exciting? Stay tuned for more updates and insights as we work together to empower social entrepreneurs across the Baltics!
If you're an investor interested in impact, we’d be happy to explore potential collaboration opportunities. For more information about the project, reach out to us at [email protected].
Project name: Establishing a pan-Baltic investment fund for social enterprises
Acronym: Impact Baltic
Duration: 1st January 2025 - 30th June 2027 (30 months)
Total project budget: 470,311 EUR
Partners: Baltic Innovation Agency (Estonia), Reach for Change Sweden, Reach for Change Latvia; Associated partner: Lithuanian Private Equity and Venture Capital Association.
Co-funded by the European Union through the European Social Fund + (ESF). Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them.
