Private Equity and Venture Capital investments target rapid-growth companies. Such companies are typically start-ups, scale-ups and mature companies with a promising potential. By nature, venture capital provides high-risk investments and therefore it does not compete with low-risk financing (e.g., bank loans). Venture capital investors add value and actively contribute their expertise to foster business development and increase value of their target companies.
In Latvia, a relatively new market, venture capital funding is mainly provided by government agencies and institutional investors. As the capital market matures, the proportion of private funding in venture capital sector increases. According to recent statistics, 95% of Latvia-focused funds’ resources are financed explicitly by institutional investors. For internationally oriented local funds this figure reaches 64%.
VENTURE CAPITAL ECOSYSTEM
ALTUM plays a pivotal role in the creation of local venture capital ecosystem. ALTUM invests substantial public funds in the venture capital sector. During the last few years, more than 180 million euros have been invested. Notable funding has been earmarked for the following years as well.
VENTURE CAPITAL AVAILABLE TO COMPANIES AT DIFFERENT STAGES OF DEVELOPMENT
Entrepreneurs striving to develop a scalable business idea, ready-made project or those looking forward to amplify an existing business are encouraged to use the most appropriate type of funding. Funds provide multiple financing opportunities to companies at different stages of development. In order to explore investment attraction opportunities please reach out to fund managers directly by using contacts provided in their websites.
Baltic Innovation Fund
Latvian and Baltic entrepreneurs have access to substantial funding for scaling up their businesses in the European Union and globally, as well as to develop innovative products. Funding is provided by the Baltic Innovation Funds (BIF) under multilateral management agreement between the European Investment Fund (EIF) and Baltic financial development institutions: Altum (Latvia), Invega (Lithuania) and KredEx (Estonia).
Currently, two fund of funds programs are operating: BIF I and BIF II.