FinEst-Faroe fund targets €30–50 million to boost Faroese economy

By Elías Thorsson November 21, 2024
25
The idyllic Faroese capital Tórshavn. (Visit Faroe Islands)

Arctic Startup reports that FinEstLove Fund Management has unveiled the €30–50 million “FinEst-Faroe” investment fund at the Slush event in Helsinki. The fund aims to accelerate economic growth and diversification in the Faroe Islands by supporting startups and established companies in key sectors, including renewable energy, aquaculture, sustainable fishing, and technology. The fund is led by Faroese experts Olaf Olsen Sundstein and Tórheðin Jensen, with backing from prominent Finnish entrepreneurs Peter Vesterbacka and Kustaa Valtonen. Together, they aim to create a balanced portfolio that fosters innovation while respecting the Faroes’ unique traditions and resources.

“The Faroese economy is uniquely positioned for growth, especially in sustainable sectors. With FinEst-Faroe, we’re excited to support local entrepreneurs and established businesses to reach new heights,” said Vesterbacka during the announcement.

  • The fund targets investments in sectors like renewable energy, sustainable fishing, aquaculture, logistics, and technology, reducing reliance on traditional industries and positioning the Faroes as a leader in sustainable development.
  • With one of the lowest corporate tax rates in the Nordics and a strong infrastructure supported by government investment, the Faroe Islands offer fertile ground for sustainable and profitable growth.
  • Beyond its initial size, FinEst-Faroe plans to expand into a larger follow-up fund, offering investors early access to a high-barrier market with significant growth potential.
  • The fund is supported by a seasoned management team, including Karola Sisask, Raymond Breckon, and James Oates, who bring expertise in fund management and investor relations.