Practica Capital plans new fund launch in 2022

The Lithuanian sponsor is preparing to raise its third-generation fund, which, Keras said, could be 1.5x to 2x larger than its latest fund, the EUR 28.5m Practica Venture Capital II vehicle. Practica VC II launched in late 2018 and held a final close in October 2020.

Practica has already invested or committed close to 70% of the fund in 18 companies, and has dry powder for one or two new portfolio investments expected within H1 2022, Keras said.

The VC sees interest from its existing and new LPs, and will focus on institutional investors, family offices and high-net-worth individuals, Keras said. It lists domestic governmental agency Invega and Swedbank Asset Management among investors in its current fund, and the European Investment Fund among LPs in older vintages, according to several announcements.

The new fund will keep its focus on early-stage investments in domestic and regional tech startups, Keras said, adding that its mission is to back businesses intending to turn into global leaders in their niches. Lithuania-based investments now dominate its portfolio, but their share is expected to be comparably lower in the next fund, with more deals expected in Latvia, Estonia, Finland and Sweden in the future, he added.

Practica now invests around EUR 500,000-1m on average in pre-seed or seed rounds and EUR 1.5m-2m in late seed or Series A rounds, Keras said. Depending on the new fund size, the targeted investment amounts may increase, he added.

The sponsor's older funds include the EUR 8m Practica Seed Capital and the EUR 15.7m Practica Venture Capital I, both raised in mid-2012. Practica has invested in more than 70 companies and completed more than 20 exits to date, Keras said.

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