New fundAug 31, 2026, 10:53 UTC

Redstone raises €10M for second North Karelia fund in Finland

What's the deal? Berlin-based venture capital firm Redstone has launched North Karelia Growth Fund II at €10 million, targeting DeepTech, defence, and the energy transition in Finland. The fund writes initial tickets of €100,000 to €300,000 and builds on the first North Karelia Growth Fund, established in 2020.

Who's backing it? Investors include the City of Joensuu, Broman Group, the University of Eastern Finland, LähiTapiola Itä, North Karelia Cooperative Society (PKO), OP North Karelia, and Laakkonen Kapital.

Why now? "Five years of working alongside exceptional founders in North Karelia has shown us the depth of expertise in the region," said Kaj Hagros, managing partner, Nordics at Redstone Nordics Oy. "This potential, combined with our focus on returns, is exactly why we are now launching a second fund."

What's the endgame? The fund targets semiconductors and photonics, defence and dual-use technologies, and the energy transition. Fund I invested in 17 early-stage companies, including Joensuu-based airship maker Kelluu, which this year raised €15 million in a round led by the NATO Innovation Fund.

Founded in 2014, Redstone runs 15 funds with roughly €650 million in assets under management.

The signal: Fund II lands amid a broader push into specialist European venture vehicles. EU-Startups has tracked around €2.5 billion in 2026 fund announcements across DefenceTech, DeepTech, and the energy transition, including the €500 million E2D and DTCP Project Liberty funds and Kembara's €750 million first close. Against those larger pan-European vehicles, North Karelia Growth Fund II takes a more geographically concentrated, early-stage bet.