Estonia-based early-stage venture capital firm Karma Ventures has reached a first close for its debut fund with EUR40 million (approximately US$45 million) in capital commitments. The fund will focus on early-stage companies in Europe. Investors in the fund included Estonia-based investment company Ambient Sound Investments and the Baltic Innovation Fund, the fund of fund initiative launched by the European Investment Fund. Pension funds and family offices also committed capital to the fund. Karma Ventures is targeting a second close by the end of 2016.