Estonia, Good for Business, Innovations, Investments, Technology

The aim is to offer opportunities to invest in high perspective startups and encourage new angel investors to make their first investments.

EstBAN president Rein Lemberpuu said that the program offers the best opportunity to start with risk capital investments. "We expect new business angels to join the program -- there has never been as favorable a moment for starting to invest as now. The experienced business angels participating in the program are very good at separating the wheat from the chaff. Thus, new business angels can invest with experienced business angels and mitigate the risk of inexperience," he said.

The Nordic Angel Program expects both active as well as new business angels. The three-month program includes practical training, which will in great detail take apart legal nuances, assessment of startup value as well as other important technical issues. During training and joint assessments, it is possible to meet with experienced business angels, who will share their experience on successess and failures. In addition, a joint study trip will take place during the program, during which new contacts can be established with other Nordic angel investors.

The Nordic Angel Program is calling for early stage startups from Estonia and abroad to apply for the program. The call for applications was opened on Feb. 15. Applications can be submitted until April 1 on the websites of EstBAN and Latitude 59. First, the 15 strongest will be chosen, who will present their company to the business angels. Four best ones will be chosen from among them, who will be able to showcase their company on the main stage of the international startup festival Latitude59.

One company will be chosen from among the four best ones during a joint assessment, into which an up to 250,000 euro syndicated investment with other Nordic investors will be made. In order to participate, an investor must contribute with an investment of at least 5,000 euros, which can be multiplied if so wished. "The idea lies in that experienced business angels invest along with new business angels, who otherwise would not know to choose the best investment object themselves. Thus, the risk can be mitigated and the investment opportunity is more accessible for a larger amount of investors as the threshold is lower," Lemberpuu said, adding that the value of the program for the startup lies in the diversity of the international investor community.

"It is in the interest of a startup to achieve the backing of a network of business contacts from various countries. Business angels are not only sources of capital, but as a rule also strategic advisors," he said.