Financing an already operating company

Opportunities for financing an already operating company can be found in the form of loan products from commercial banks as well as by enlarging share capital by organizing a private placement or public offering. In addition, the state, in conjunction with Enterprise Estonia, also offers various aid for financing the development of a company.

Supports from the structural funds of the European Union

Structural support of the European Union can be applied for from three funds: the European Regional Development Fund (ERDF), the European Social Fund (ESF), and the Cohesion Fund.

Detailed advice on planning and implementing a project is available on the website of the structural support of the European Union.

KredEx financial services

Fund KredEx helps enterprises develop quicker and expand more safely to foreign markets, offering loans, venture capital, credit insurance and guarantees with state guarantee.

Supports of the Environmental Investment Centre

The Environmental Investment Centre (KIK) finances various environmental projects. Environmental loans for specific purposes can also be applied for at KIK to implement projects.

Supports for companies in the creative industry

Information on the opportunities of funding companies in the creative industry is available on the websites of Creative Estonia and Creative Europe.

Grants from Enterprise Estonia

Enterprise Estonia supports starting and developing companies by providing a number of grants and information services. To obtain initial evaluation of your business idea or business plan, contact the Information Centre of Enterprise Estonia.

Private placement – involving an investor

A private placement of shares means that you sell a holding in your enterprise to a definite partner in return for the investment you need for developing your business. Often investor(s) are private venture capital funds that operate as financial investors. The Development Fund (Eesti Arengufond) helps bring investors and enterprises together. To find a strategic investor, you must have a strong and distinctive enterprise or business idea with international commercial potential.

Initial public offerings

Capital can also be raised through an IPO, which generally requires that the company’s securities will eventually be listed on a stock exchange. Throughout the world, securities are broadly classified in three major categories.

  • Listed securities are traded on a securities market - this is the most reliable option for investors, but imposes the greatest number of obligations on a company.
  • The open market is above all for rapid-growth and higher-risk companies, the rules for being listed on the open market are somewhat less stringent.
  • The third category of securities market is the alternative market (the so-called unregulated market; not very many requirements are imposed on enterprises and the requirements are also fewer with regard to disclosure of information.

You can use all three opportunities on the Tallinn stock exchange.

Conditions for being listed on the Tallinn Stock Exchange

Last amended: 27-01-2016 11:46 | Compiled by: Enterprise Estonia