Karma Ventures to start raising new fund in 2020

Agne Mazeike, Mergermarket
28 February 2019

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Karma Ventures, an Estonian venture capital firm, will start raising a new fund next year with a view to close in 2021, according to founding partner Margus Uudam.

Uudam said it was too early to comment on the potential fund size, only adding that it could be similar to its existing €70m fund focusing on European technology companies. Karma intends to handle the fundraising process internally, using its own network, he added.

The close of Karma's debut fund was announced in May 2018, with UK-based Isomer Capital among the LPs coming in at final close, Uudam said.

The fund had held a first close on around €40m in early 2016, with a second close around €60m in mid-2017. Its first-close investors were understood to include Ambient Sound Investments, a domestic investment firm founded by four founding engineers of Skype; as well as the Baltic Innovation Fund, a fund-of-funds initiative by the Baltic governments and the European Investment Fund.

Karma still has around 75% of its debut fund to invest by the first quarter of 2021, Uudam said. It is scheduled to be wrapped up in 2026 but could be extended by its investors, he added.