> ## Content Index > Fetch the complete content index at: https://fomo.observer/llms.txt > Use this file to discover other available public pages before exploring further. # Escaping the local capital trap with global ambition and unified public markets - URL: https://fomo.observer/escaping-the-local-capital-trap-why-baltic-nordic-vcs-must-embrace-global-ambition-and-unified-public-markets/ - Published: 2026-08-28T04:30:47.000Z - Updated: 2026-08-28T08:21:51.000Z - Author: Tarmo Virki - Tags: Investing, Investors HAAPSALU - To survive an increasingly competitive global fundraising environment, venture capital fund managers across the Baltics and Nordics must look beyond local private capital and embrace the unifying power of regional public markets, industry leaders warned. Speaking at the "From Baltics to New Nordics" panel at Baltic VCA Summit in western Estonia, experts argued that local VCs are stunting their international growth by relying too heavily on domestic comfort zones. ### The push for integrated bourses The debate over venture scale placed public markets at the forefront, highlighting how closer stock exchange cooperation provides a crucial lifeline for regional scale-ups. The Baltic stock exchanges already operate with a unified list across Estonia, Latvia, and Lithuania, streamlining capital access for international investors. At the same time, the Nordics are pushing for tighter bourse cooperation to consolidate liquidity and prevent regional capital from fragmenting. However, structural friction remains a hurdle, as the region's exchanges are split between different corporate owners, such as Nasdaq and Euronext, which divides potential capital pools. Panellists noted that leveraging increasingly integrated public markets can help mature tech startups to avoid the systemic "European discount" while stimulating the local financial ecosystem. For Samuel Wendelin, Head of Fund Investments at Finnish state investment firm Tesi, functional local public markets are necessary to change the region's financial trajectory. Historically, he noted, Finnish companies seeking public capital had to look toward the U.S., the U.K., or Sweden. > "The world order has been that if you want to go to the capital markets... you basically need to go outside of Finland," Wendelin explained. "But now we would want to see a narrative shift a bit... we'd love to see more of those listings here in the Nordics as well." Wendelin pointed to the recent landmark move by Finnish quantum computing company IQM as a prime example of this desired shift. IQM achieved a dual listing on both Nasdaq New York and the Helsinki Stock Exchange via a SPAC merger, providing a blueprint for keeping high-growth tech capital rooted in the local ecosystem without sacrificing access to deep global liquidity pools. ## Sign up for Fomo.Observer Startup stories from Estonia. Free weekly newsletter. Subscribe Email sent! Check your inbox to complete your signup. No spam. Unsubscribe anytime. ### Comfort over ambition: The local VC trap Despite boasting robust early-stage ecosystems, regional fund managers are struggling to attract major international limited partners (LPs). Wendelin pointed to a distinct lack of drive among local general partners. "The statistics show very clearly that Finnish managers are poor in raising international capital," Wendelin said. He directly attributed this bottleneck to a lack of ambition, noting that comfortable domestic funding creates complacency. > "If you have a better situation, like Finnish pension funds are deploying in Finnish funds... it doesn't force you to go outside to market your activities," Wendelin explained. "It might be the easier way out." ### The 'Nordic' halo effect vs. Baltic efficiency The panel, moderated by Siena Secondary Fund's Rando Rannus, also scrutinised how regional branding impacts global fundraising. While a regional label can open doors, international allocators ultimately prioritise underlying performance over geography. Michael Joyce, Principal at Isomer Capital, which has invested in over **100** European funds over 11 years, dismissed the notion that a specific regional brand guarantees success. While acknowledging that brand matters for attracting top-tier talent, the ultimate metric remains performance. > "It doesn't really matter that you're the best Baltic VC," Joyce said. "It matters, did you get into the best companies, regardless of where it is?" Isomer's data, covering approximately **3,000** portfolio companies, shows that while the Baltics offer a lower loss ratio, the highest venture returns in Europe remain heavily concentrated in legacy hubs like London, Paris, and Stockholm. For the region's VCs, the mandate is clear: scale beyond local safety nets, utilise the unifying public markets, or risk obsolescence.