SEB Launches a Venture Debt Offering Totalling 20 Million Euros to Help the Future Unicorns

To encourage growth companies to achieve their ambitions, SEB Pank has announced a new funding programme for growth investments - SEB Baltic Venture Debt. It enables startups to raise funds without having to give up their shares. The capacity of the programme in Estonia and the Baltic states is a total of 20 million euros. The amount offered by SEB is up to 2 million euros per company and, as a rule, it should not exceed 30% of all investor capital raised.

It is common that in the initial phase of a business idea, own funds are used for development and creating the business model, in addition to participating in incubators, accelerators and benefiting from business angels. If all goes well, venture capital funds are added in the next stage of development. These investors wish to receive a share in the company, hoping for growth and a successful exit from the company in the future. The solution offered by SEB is an additional option for entrepreneurs who cannot or do not want to dilute their ownership of the company, but still need funds for scaling.

“SEB Baltic Venture Debt is ready to step in when a company has investors who believe in the company, as well as a functioning business model, a stable product or a service that has undergone a prototype and testing phases, there are customers paying for the product or service and the company needs money for further growth, for example, to enter foreign markets, for investments into employees, equipment, other assets, sales team, marketing etc. Even though loaning money to companies in early growth stages is related to higher risks, we believe in the capability of Estonian and Baltic entrepreneurs to generate sustainable growth. The purpose of the SEB solution is to contribute to the growth of the international success and competitiveness of ambitious companies in our region and we find that the time is right for launching such a solution,” said Ainar Leppänen, Member of the Management Board and Head of Retail Banking Area of SEB.

SEB Baltic Venture Debt is most suitable for companies with: 

• Functioning business models benefiting from the use of technology.
• A product or service that is ready and it has paying customers, preferably having been on the market for more than a year. 
• A track record of rapid growth, e.g., an increase in turnover of at least 30% in a year.
• Committed investors.
• Ambitions to grow outside of Estonia or even Europe.
• An annual recurring revenue of at least 500,000 euros per year.
• A need for additional funding on mutually acceptable conditions for further growth and are looking for venture debt as a tool to leverage the funds that are to be raised with equity investors. 

“In our opinion, there are enough companies with such potential in Estonia and supporting their growth could bring tangible benefits also for the country’s economy, both through increased export, taxes, and also higher qualification jobs being created,” Leppänen said.
Interested companies can apply by contacting

SEB Baltic Venture Debt manager Aleks Korolenko via email venturedebt@seb.ee.

More information on the SEB web page: SEB Baltic Venture Debt