Estonia is booming with energy innovations — from novel hydrogen tech to supercapacitors and beyond, the sector is producing more and more bright ideas to ease the green transition. Yet this could be only the beginning, as new partnerships are formed. EIT InnoEnergy, the leading innovation engine in sustainable energy, was ranked as the most active investor in energy last year. Now it is teaming up with Estonian cleantech accelerator Beamline.
An innovative alliance
EIT InnoEnergy operates at the centre of the energy transition and is the driving force behind three strategic European initiatives which include the European Battery Alliance (EBA), the European Green Hydrogen Acceleration Center (EGHAC) and the European Solar Photovoltaic Industry Alliance (ESIA). It has a portfolio of more than 200 companies, which are estimated to generate 110 billion euros in revenue and save 2.1 gigatonnes of CO2 accumulatively by 2030. And although investing all across the globe, InnoEnergy has also been present and active in Estonia for many years now.
Even before they had their own hub in Estonia, they had already invested in some of the companies founded here. At the moment, under their belt they have the supercapacitors manufacturer Skeleton; Hepta Airborne, which provides inspection solutions; and the latest one is a company called Beholder, which conducts remote sensing and AI prediction for mineral deposits, helping with the prospecting of energy-transition-critical raw materials and, for example, geothermal sites.
Szymon Kwiatkowski, EIT InnoEnergy investment manager, says that it probably won’t come as a surprise to anyone that the Estonian startup ecosystem is especially active and vibrant. “Estonian entrepreneurs did a terrific job with turning the theoretical disadvantage of a small internal market into a huge edge by adopting a global mindset from the inception of a startup,” says Kwiatkowski. “This is especially important in climate tech and energy transition technologies, since they often require a decent scale and the ability to partner across industries. How the energy transition ecosystem can be leveraged is the secret sauce of InnoEnergy, and I am a strong promoter of the idea concerning how a mix of that secret sauce and the Estonian entrepreneurial spirit could work perfectly together to make a great difference when it comes to adopting new climate technologies.”
Now InnoEnergy is cooperating with the Estonian-based accelerator Beamline. “Our cooperation will be focused on keeping our eyes open on emerging cleantech innovations in the Baltics that InnoEnergy can invest in and fostering relationships with local cleantech and energy investors and industrial players. Additionally, we will look to support our portfolio with business development activities in the region,” says Kwiatkowski.
Focusing mostly on cleantech, the Beamline accelerator has been around only for a few years and already shows significant results. Jana Budkovskaja, managing partner of Beamline, says that they have managed to show the highest level of survival, with over 90% of their portfolio companies continuing operations.
“The best indicator of our portfolio’s performance is the sustainable growth of companies and the attraction of investments, because together, our startups have managed to raise more than 35 million euros in follow-on investment, which is a significant result. We believe that striving to align with global climate goals is only achievable with science, society, and money focusing together in one direction. That’s why Beamline has more and more deep-tech solutions and continuously grows its network of co- and follow-on investors,” she explains.
“For the next five years, we are planning to invest and accelerate the development of at least 50 groundbreaking cleantech startups. Meanwhile, we will continue to nurture and contribute to climate-related communities so they can grow and mature. From the fund perspective, we are working towards getting several really impactful ‘unicorns’ (or maybe ‘whales’) that would be super important for the planet.”
On cooperating with EIT InnoEnergy and just starting their hub in the Baltics, Budkovskaja says that Beamline’s aim is to leverage its established strengths to further enhance the innovation capacities of the Baltic states: “We currently have portfolio companies from 17 different countries, and we are focusing more on European startups, still remaining active in the Baltics, as long as it furthers the goal of connecting different communities. As the EIT InnoEnergy hub in the Baltic countries, we are here to provide startups in the energy sector with access to investments from top European funds and to help large corporations find innovative solutions that can change the future. We are proud to be part of a community that makes such a significant contribution to the development of energy in Europe.”
Budkovskaja adds that this goal resonates with the European Institute of Innovation and Technology’s (EIT) mission to drive sustainable growth and competitiveness through innovation. “Cleantech solutions are in high demand on the market, and close cooperation with already established companies and institutions helps to fine-tune the development, making it smoother and quicker.”
Accelerating in the right way
But what is so special about cleantech startups that they need a separate accelerator? Budkovskaja does not hide the fact that at the beginning investors were sceptical and called this kind of teams “tree huggers”.
But, for example, the team behind Beamline has been supporting and developing the cleantech sector for almost a decade: “We believed that private money could help the Green Deal, and as you can see, it has worked out very well. Cleantech is a revolutionising sector, utilising a lot of breakthrough technologies. Having a focused accelerator enables concentration of the relevant knowledge and creates a boiling point for cross-sectoral cooperation.”
Beemline alumni
“Also, the maturing and exciting horizon of cleantech startups is longer than for general digital startups, and this is often because of the hardware component or the overall infrastructure – the framework of the legislation, processes, and market drivers. These are the challenges, and they should be modified to allow cleantech solutions to enter the market,” she explains. “It means that cleantech accelerators and investors should be very knowledgeable about the upcoming trends, regulations, and politics. We are continuously a step ahead of the market by educating and funding cleantech startups and matching them up with relevant stakeholders.”
Kwiatkowski is also convinced about the benefits of teaming up with local partners: “Having a local, renowned partner is crucial for building strong and long-term relationships. Those are important for InnoEnergy not only in the context of new startups joining our portfolio, but also fellow investors in climate tech and industrials that could potentially partner and pilot with the early-stage members of the ecosystem. And regarding Beamline, I have a strong conviction that we are working with a fit-for-purpose team.”
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