NordenBladet – Estonian startups are facing difficulties in securing funding due to the current economic climate. Companies such as Hagen Bikes and Robus Group, which make steel cargo bikes and training equipment respectively, have had to lay off staff and borrow money. Despite the challenges, the companies are still optimistic about their future prospects and continue to grow. The companies have also seen a reduction in investment interest, but startups in the climate, energy, and infrastructure technology sectors are still attracting investment.
Estonia’s startups are facing difficulties in raising capital due to the current economic downturn. Hagen Bikes, which produces steel cargo bikes, has had to lay off staff and borrow money to continue its development. The company’s CEO, Kaspar Peek, stated that raising money has become increasingly difficult in the past two years and that the future of the financial markets is uncertain. Despite these challenges, the company is still performing well and has secured a bike rental contract with the German city of Kiel, which has expanded. Hagen Bikes sells 95% of its products abroad and is hopeful that the Estonian market will grow in the future.
Another Estonian company, Robus Group, which trades on the Tallinn Stock Exchange’s alternative list, has also experienced difficulties in securing funding. Despite a successful €77,000 share sale last spring, the market has cooled down, making it harder for the company to find funding. However, the company is still growing and has seen an increase in the number of strategic partnerships. The board member of Robus Group, Mikk-Alvar Olle, stated that investors are being more cautious with their money, but companies that see opportunities for cooperation are still willing to make investments.
In conclusion, while Estonian startups are facing challenges in securing funding due to the current economic downturn, they are still optimistic about their future prospects and continue to grow. Climate, energy, and infrastructure technology startups are still attracting investment, while other companies are seeking alternative funding options and forming strategic partnerships. Despite the challenges, Estonian startups are determined to overcome the obstacles and continue their growth and development.
Source: Aktuaalne Kaamera, Friday, 27.01.2023
Featured image: Kaspar Peek (YouTube)