Practica Capital aims for EUR 80m hard-cap for third fund

Practica Venture Capital III has held a first close on EUR 32m, according to the sponsor's press release on 23 December. It has a EUR 70m target.

The sponsor anticipates the second close in May or June, Andriuškevičius said, adding it may be its final close, too. However, there is a possibility to continue fundraising until autumn, he said.

COBALT is the fund's legal advisor, he added.

This news service reported in October 2021, citing Practica's founder and partner Donatas Keras, that the sponsor plans to launch its third-generation fund in 2022.

Practica Capital's older funds include the EUR 28.5m Practica Venture Capital II, launched in late 2018, as reported. It also has the EUR 8m Practica Seed Capital and the EUR 15.7m Practica Venture Capital I, both raised in mid-2012, also as reported.

Its funds from 2012 have been extended, as they still have investments in growing companies, Andriuškevičius said, adding that overall it is open for exit opportunities. Its second-generation fund is nearly fully invested into 19 companies, he added.

Some of Practica Capital's portfolio companies include PVcase, a Lithuanian solar technology company; TransferGo, a UK-based international money transfer specialist; Interactio, a Lithuanian remote interpretation platform; Montonio Finance, an Estonian fintech; Ovoko, a Lithuanian SaaS-enabled marketplace for used automotive parts, according to its press release.

Investors
Aside from institutional investors primarily from Europe, it continues building an individual LPs pool of traditional and tech entrepreneurs, according to Andriuškevičius. The anchor investors in the first close include Lithuanian pension funds manager Swedbank investiciju valdymas and Estonian investment management company Swedbank Investeerimisfondid, also according to the press release.

Investments
The new vehicle plans to build a portfolio of 25 companies over its five-year investment period, with at least 50% of the fund reserved for follow-on investments, Andriuškevičius said. It has a lifecycle of 10 years, with a possibility for two one-year extensions, he added.

Its initial tickets could range from a few hundred thousand euros and up to EUR 3m, Andriuškevičius said, adding it can invest up to 10% of the fund per single company including follow-ons.

Practica Capital anticipates making initial investments predominantly in seed and pre-seed stages, and it could selectively make the first investment in a Series A round, Andriuškevičius said. It is unlikely to participate in follow-ons past Series B, he added.

It plans to back Baltic founders and is flexible to make investments across the EU, Andriuškevičius said. Nonetheless, it anticipates investing around half of the fund in Lithuanian companies, and the remainder equally into Latvian and Estonian startups, he said.
However, the final result will depend also on the pipeline, he added.

Practica Capital is a generalist investor in terms of sectors, Andriuškevičius said, adding that it typically analyses the product, its uniqueness, the quality of a team, as well as market potential.

Practica will continue accumulating and sharing its in-house expertise and close networks in building marketplaces, B2B Software-as-a-Service and deep-tech companies from this region, according to its press release.

It has already made the first investment from the new vehicle, namely into Lithuanian online beauty booking startup, Watalook, Andriuskevicius said. It also has a few potential candidates in due diligence, he added.

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