Redstone launches new €10 million growth fund to invest in North Karelia’s most promising startups

Redstone is launching North Karelia Growth Fund II, a new venture capital fund building on the North Karelia Growth Fund established in 2020. Following the strong performance of the first fund, the new €10 million fund will continue investing in North Karelia’s most promising early-stage growth companies. The fund has a dual mission: to generate competitive returns for investors and strengthen the vitality of North Karelia.

Over the next five years, North Karelia Growth Fund II will invest in approximately 15–20 early-stage growth companies based in North Karelia or building a significant presence in the region. Initial investments will typically range from €100,000 to €300,000, with capital reserved for follow-on investments in the strongest portfolio companies in subsequent funding rounds. The fund will focus particularly on semiconductors and photonics, defence and dual-use technologies, and solutions supporting the energy transition.

The fund is Redstone’s second regional venture capital fund in North Karelia. It continues the successful work of the first North Karelia Growth Fund by supporting the region’s most promising early-stage startups with international growth potential.

“It is great to see experienced fund managers such as Redstone continuing to invest in our region. This kind of long-term commitment strengthens the conditions for growth and new jobs across North Karelia,” says Jere Penttilä, Mayor of Joensuu.

First fund accelerated international growth

Launched in 2020, North Karelia Growth Fund I invested in 17 early-stage companies that have since expanded their business into international markets. One of the fund’s first investments was Joensuu-based airship company Kelluu, which the fund supported as one of its first institutional investors. This year, Kelluu raised €15 million in a funding round led by the NATO Innovation Fund.

“The fund invested in our company at an early stage, when we were still proving our concept on the edge of Europe. Having an experienced, locally present investor on board from our first funding round helped us build the growth trajectory that brought us to where we are today,” says Janne Hietala, CEO of Kelluu.

North Karelia Growth Fund II will continue the same approach, investing in new early-stage growth companies, typically as one of their first institutional investors.

Investors from the first fund continue their commitment

The fund is private and market-driven. It is backed by long-term investors committed to strengthening growth and vitality in North Karelia, many of whom are continuing as investors in the new fund. Investors include the City of Joensuu, Broman Group, University of Eastern Finland, LähiTapiola Itä, North Karelia Cooperative Society (PKO), OP North Karelia and Laakkonen Kapital.

“North Karelia needs new companies and entrepreneurs who are willing to work hard – they are the foundation of our region’s vitality. It is good to see capital and expertise being directed here, where the work is being done,” says Harri Broman, Chair of the Board of Broman Group Oy.

“Five years of working alongside exceptional founders in North Karelia has shown us the depth of expertise in the region. The ecosystem has matured significantly, and partners such as Business Joensuu have played a key role in creating even stronger conditions for new growth companies to emerge. This potential, combined with our focus on returns, is exactly why we are now launching a second fund,” says Kaj Hagros, Managing Partner at Redstone Nordics Oy.

Further information

Mikael Myllymäki
Portfolio Manager, North Karelia Growth Fund II
Redstone Nordics Oy
mikael.myllymaki@redstone.vc
+358 40 1966 041

Kari Pulkkinen
Fund Manager & Growth Coach
Business Joensuu
kari.pulkkinen@businessjoensuu.fi
+358 50 406 8716

About North Karelia Growth Fund II
North Karelia Growth Fund II is managed by Redstone Nordics Oy. The fund’s portfolio managers are Kaj Hagros and Mikael Myllymäki.

Learn more: North Karelia Growth Fund
https://www.northkareliafund.com/ 


About Redstone
Redstone is a European venture capital firm with 15 funds, approximately €650 million in assets under management, and offices across Europe. The company invests in ambitious growth companies and founding teams with international growth potential.

https://www.redstone.vc/