Sparkmind holds first close for debut ed-tech fund

The VC started fundraising in December 2017 and is targeting a final close by December 2020. The fund has a hard-cap set at €60m.

Sparkmind appointed United Bankers of Finland as placement agent and Borenius as its legal adviser. 

The fund will have a 10-year lifespan with a five-year investment period. 

The GP said that, despite education being one of the largest sectors in the world, the aggregate market capitalisation of learning companies was relatively low. Additionally, it said the sector is on the verge of an upsurge in innovation and capitalisation, presenting an opportunity for a specialist VC to create value during the 2020s and beyond.

It also noted that Nordic and Baltic countries are producing an impressive array of ed-tech startups, but that until now the region lacked a sector-focused venture investor.

Investors
Finnish Industry Investment (Tesi) and KRR III have joined the fund as cornerstone investors, alongside institutional and private investors, including OP Banking Group, Elo Mutual Pension Insurance Company, the University of Jyväskylä and the City of Espoo. The GP has seen further interest from prospective investors based in the Nordic countries, Switzerland and the UK. 

Investments
The vehicle will deploy equity tickets of up to €5m, in stages ranging from seed to series-B rounds. It will invest in approximately 20 companies mainly in northern Europe, but also has a mandate to invest in companies outside of the region. 

The fund has made its first investment of €1.5m in a €3.4m series-A round for Finnish career accelerator specialist Fuzu.

The GP has signed a termsheet for another deal in a Nordic company, which is due to complete in a month.

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