European film financing has concentrated on the national institutions since 1970s-1980s, when the state film funds became customary. Consequently - in 1997, the Estonian Film Foundation was established by the Estonian Ministry of Culture, with the task to share and distribute the national film budget.

As the film industry morphs and develops very rapidly due to the technological advancement and the ever-changing financing system, Estonian Film Institute (EFI) came to be as its successor, embracing a much wider spectre of activities in the film industry. EFI’s professional sphere now reaches the whole field of film.

The institute is broadly divided in three departments: development and marketing, production and heritage. A subcompany called Tallinnfilm OÜ belongs in the EFI family, managing an arthouse cinema. Another cut member is Creative Europe MEDIA desk, mediating the financing and educational opportunities of the European Union.

Legally, the Estonian Film Institute is a national foundation, financed mainly by the Ministry of Culture. The main incentive of the Estonian Film Institute today includes remaining approachable to all the filmmakers, making sure that Estonian film is, being the pride of Estonian culture, and last but not least - evolving with time and make Estonian film more visible and competitive on the international arena.