EBRD invests €10 million in Siena Secondary Fund II

• EBRD invests €10 million in Siena Secondary Fund II
• Fund will invest in technology-driven companies in the Baltic states and central and eastern Europe
• Investment supports growth of nascent venture capital secondaries market

The European Bank for Reconstruction and Development (EBRD) has invested €10 million in Siena Secondary Fund II, a new fund managed by Siena Venture Partners, a leading private equity manager based in Estonia.

The fund, which targets €50 million of total commitments, will invest in innovative and technology-driven companies in the Baltic states and central and eastern Europe, namely those in post-Series A stage, with proven business models and significant revenues.

The fund will acquire shares from existing shareholders (such as company founders, employees and early investors), enabling them to monetise their interests in mature but unlisted technology companies.

Secondary market transactions, such as those targeted by Siena, provide much-needed liquidity to key stakeholders in the market, streamline the shareholding of the investee companies, and unlock capital which can then be re-invested in other companies in the local market, ultimately driving the growth of the early-stage technology ecosystem in the region.

The venture capital secondaries market is at a nascent stage, both in the Baltic states and in central and eastern Europe. Its growth will be important for the further development of a well-functioning venture capital market and the broader innovation ecosystem in the region.

The EBRD is a major investor in the Baltic states and central and eastern Europe. To date it has invested €36 billion in the 9 countries in the region.