Venture Capital and Private Equity


Venture Capital and Private Equity 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 institutional investors, where substantial contribution stems from government agencies . 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%.

Altum venture capital investments

EIF (European Investment Fund)
BIF (Baltic Innovation Fund) – BIF IBIF II

ALTUM plays a pivotal role in the creation of local venture capital ecosystem in Latvia. ALTUM invests substantial ERDF and state 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.


Altum has invested in 16 funds, including Baltic funds of funds (i.e., BIF1 and BIF2). Venture capital investments have contributed to the establishment of many start-ups with high added value products in IT, sciences and manufacturing industries.

101mEUR have been invested ensuring start-up growth and development*

335 companies have been supported through venture capital and private equity investments

Altum investments have contributed to over 184mEUR payments in taxes over the last 10 years

636 new jobs created, through funds of funds more than 10000 jobs secured

*Data on target companies, September, 2022

We are members of Latvian Private Equity and Venture Capital Association (LVCA),
Invest Europe, as well as European Venture Fund Investors Network (EVFIN) and EIF-NPI Equity Platform


Contacts for fund managers and policy makers:

Financial Intermediaries Department, 


Types and uses of funding


Venture capital funding available to companies at different stages of development


Entrepreneurs striving to develop a scalable business idea, a ready-made project or those looking forward to amplifying 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.

BIF (Baltic Innovation Fund) – BIF I, BIF II


What is venture capital intended for?


Venture capital could be:


investment in an enterprise with a high growth and a scalability potential


initial funding for early-stage companies to develop an idea or create a product


for growth stage companies to increase capacity or expand into new markets if traditional means of financing are not available

Altum-backed venture capital funds target high added value industries: IT, medicine, sciences, Green Deal.

How can a venture capital investment benefit your company?


The amount of venture capital funds available and the extent of an investor’s role in your company depends on whether it is only idea, a start-up or a company already conquering the market. Companies will receive not only funding, but also an active investor participation in business development and growth, knowledge about the chosen industry and networking benefits. These benefits will spur growth and value.


How to receive venture capital funding?


To find out more information about available financing and means of acquiring it, contact fund managers. To convince an investor of your idea’s, project’s or company’s future growth, you will need to provide a clear and an ambitious business plan with the capabilities to execute it. Key indicators: business plan viability, a team and its ability and competence to execute the plan as well as scalability of your business idea.


Make sure that your company is suitable for venture capital investments


Depending on specialization, choose venture capital fun


Contact fund managers

Lithuanian and Latvian National Promotional Institutions “Investicijų ir verslo garantijos” (INVEGA) and AS “Attīstības finanšu institūcija Altum” (ALTUM) have announced the results of the public consultation on the terms and conditions for the selection process of the Financial Intermediary of the newly planned venture capital instrument “Baltic Capital Markets Acceleration Fund” (Fund).


We are delighted to have received a total of 62 comments, suggestions and remarks from the market participants. Representatives from all the Baltic countries have shown their interest in the financial instrument we are currently developing.
Please see below a short summary of comments, suggestions and remarks we have received. It is expected, that BCMAF will now:

i) Be able to invest in publicly listed bonds (IBOs). Fund is also limited to investing no more than 40% of the total invested amount. Fund is prevented from investing in RE bonds.
ii) Be able to invest in secondary market opportunities if the initial investment was made before or at the time of an IPO/IBO.
iii) Once the investment targets in Lithuania and Latvia have been met, the Fund will invest the remaining available funds at the EU level.
iv) Implementation of other changes necessary for the successful operation of the Fund.

Here is the link to a full document.



An Invitation to provide commentry on the Open Call for Expression of Interest selection criteria for the “Baltic Capital Markets Acceleration Fund”


Lithuanian and Latvian National Promotional Institutions “Investicijų ir verslo garantijos” (INVEGA) and AS “Attīstības finanšu institūcija Altum” (ALTUM) invite to provide their comments on the conditions for the selection process of the Financial Intermediary of the newly planned venture capital instrument “Baltic Capital Markets Acceleration Fund”.


“Baltic Capital Markets Acceleration Fund” will be targetting SMEs and small, innovative mid-cap companies operating in the Lithuanian and Latvian markets, which are planning for a near-term listing on a Baltic stock exchange.


Open call for expression of interest:


Comments are welcome up to and including 9 February, 2024 at



On 13 June 2023, the Latvian Government approved the creation of the Baltic SME IPO Fund (IPO Fund), which will be established together with the Lithuanian development financial institution INVEGA.

  • The objective of the Baltic SME IPO Fund (Capital Market Development Acceleration Fund or CMDAF or IPO Fund) is to enhance the availability of financing for SMEs and Small or Innovative mid-caps in Baltics.
  • The aim is to accelerate the development of the Baltic overall public market funding ecosystem while catalyzing private investor flows.


The total financing of the Fund is EUR 50 million, of which ALTUM and INVEGA will invest EUR 20 million each, but EUR 10 million will have to be attracted by the Fund manager, that will be selected in Open call for expression of interest process and in accordance with the principles of transparency, non-discrimination, fair competition and respecting the best practices as well as observing the requirements of confidentiality and impartiality.


  • The IPO Fund will participate in initial public or private offerings related to both the main (regulated) market (at Nasdaq Baltic) and the alternative market (First North), as well as will invest in private pre-listing stage Baltic companies with a clear intent to list on the aforementioned venues in a reasonable period of time (indicatively 12-18 months) with agreed roadmap.
  • The Fund will target established commercially viable SME companies with valuation between EUR 5-100 million.
  • Depending on the specific project, the investment amount in one company is planned from EUR 0.4 to 5 million, on average EUR 2-3 million. The IPO fund will invest up to 50% of the deal amount.


On 16 August 2023, ALTUM signed the Memorandum of Understanding with INVEGA, committing to launch the public selection of the Fund manager by the January 2024 and to announce the Fund manager by May 2024.


More on creating the Fund

Decision Made in Public Procurement for Growth Stage Private Equity Fund Manager`s Services


On 12 April ALTUM has concluded the selection of a Growth stage  private equity Fund Manager. As a result, the contract rights have been awarded to FlyCap AIFP SIA.


Over the next five years, the chosen Fund Manager will invest a total of €24.8 million from the European Regional Development Fund (ERAF). Additionally, the Fund will need to attract private investments amounting to at least 40% of the total Fund capital, thereby reaching a combined Fund volume of €41.3 million. These investments will be directed toward prospective and sustainable growth-stage companies with a focus on export, fostering the creation of new jobs, tax revenues, and overall development of the Latvian economy.


In accordance with the procurement regulations, a ten-day period has been established during which the selection results can be challenged.


Information about the procurement result in the Electronic Procurement System



The application for the selection of venture capital fund managers in the amount of EUR 55,8 million is closed


We are happy about the interest expressed by the applicants – 11 applications were received. We are starting work on the evaluation.


✅ 3 Fund Managers will be selected to invest in pre-seed and seed stage companies

✅ The total amount of public funding – EUR 55.8 million

✅ Each Fund will also have to attract private investments in the amount of EUR 2.07 million



ALTUM announces tenders for the selection of Early Growth Stage and Growth Stage Private Equity Fund Managers. The total public funding allocated for both Funds is EUR 37.2 million.


The development finance institution ALTUM has announced two tenders: one for Early Growth Stage private equity Fund manager and one for Growth Stage private equity Fund manager, who will have to invest in companies both in Latvia and in other European Union countries.


The available public funding for both Funds amounts to EUR 37.2 million, allocated as EUR 12.4 million for Early Growth Stage investments and EUR 24.8 million for Growth Stage investments. Additionally, each Fund must attract private investments of at least 40% of the Fund`s total capital.


ALTUM Board Member Ieva Jansone-Buka: “We continue the selection of venture capital/private equity Fund managers for the upcoming European funding round. The total amount of investments in companies from European funds will be EUR 93 million. Combined with private funding, it will exceed EUR 110 million, offering essential support for the growth and development of innovative, technology-based companies with high growth potential.”

The Fund manager selection criteria and other latest information, as well as draft limited partnership agreements, are published in the electronic procurement system:


Applications can be submitted until 29 February, 2024 at 10 a.m.


Altum has published responses to the received questions regarding the Tender ALTUM 2023/15/FSD and made amendments to the Regulation.


Altum has compiled all the received questions regarding the Tender ALTUM 2023/15/FSD. The questions were submitted via email to and were also raised in person during the Q&A session at the meeting of interested suppliers on December 5th of this year.


The responses to the questions have been placed in the EIS e-procurement subsystem  in the section ALTUM 2023/15/FSD.


Besides, Altum Procurement Commission has made a decision to amend the Tender Regulation ALTUM 2023/15/FSD, specifying the selection procedure, and also translated the Regulation in English.

Q&A, amendments to the Regulation, as well as the Regulation in English can be found here:


First procurement commences to select managers of EUR 55.8 million of start-up venture funds


ALTUM has launched a public procurement process to choose three fund managers for startup venture capital funds. These managers will be responsible for deploying European Union funds and private financing to support emerging and export-focused companies in Latvia and other EU countries over the next five years. 


These funds will focus on investing in pre-seed and seed-stage companies. The total public funding for startup investments is EUR 55.8 million, with each selected fund receiving EUR 18.6 million. Additionally, each fund manager will be required to secure private investments totaling EUR 2.07 million.


ALTUM Board Member Ieva Jansone-Buka: “With this procurement, we are initiating the selection of venture capital managers for the upcoming European funding period. The new period will witness the highest-ever funding allocation for startups. Building on the success of previous fund managers who invested in emerging companies like NACO Technologies, Alternative Plants, RoboEatz, and others that have made a mark in international markets, we believe that additional funding for the industry will foster the emergence of new, innovative, and competitive companies in Latvia, contributing further to the Latvia’s growth.”


Selection of venture capital fund managers has been announced in accordance with Cabinet Regulation No. 463 of August 15, 2023, “Rules for Implementation of “Venture Capital Investments” Programme”. Public funding for the funds will come from the European Regional Development Fund.


Funds and Criteria


The selected fund managers will invest in pre-seed stage companies, with a maximum investment of EUR 250,000 per project, as well as in seed-stage companies, with a maximum investment of EUR 1.5 million per project, thereby promoting the creation and development of startups.


Ieva Jāgere, Head of ALTUM Private Equity Department: The existing generation fund managers have so far committed EUR 7.8 million to pre-seed and seed investments across 157 companies, however, their investment period ends in June 2024. We definitely see the positive and favourable impact of this venture capital program it has on the growth of startups and boosting a successful startup business environment in Latvia.”


Information about the Procurement


The fund managers’ selection criteria, other information regarding procurement and a draft procurement (limited partnership) agreement have been published in the electronic procurement system:


Submissions will be open until 10 a.m. on January 31, 2024.



Important Details Regarding the 5th Generation Private Equity and Venture Capital Fund Program


The program’s public funding is set at EUR 93 million, and it will be entrusted to five fund managers.


The fund managers will be chosen through an open, transparent, and non-discriminatory selection process, adhering to the guidelines of public procurement regulation.


Early-Stage funds
(3 fund managers)
Late-seed fund
(1 fund manager)
Growth fund
(1 fund manager)
Altum financingEUR 55 800 000
(EUR 18 600 000 per fund)
EUR 12 400 000EUR 24 800 000
Private financingAt least 10% of the fund amountAt least 40% (EUR 8.27 M)At least 40% (EUR 16.5 M)
RegulationEU Regulation 651/2106 Article 21 (GBER Article 21)
Max ticket sizeEUR 250 thEUR 250 thEUR 2 MEUR 4 M
Term10 (1+1) (investment period 5 years)
Distribution of losses and incomeDistribution of losses – in proportion to the invested amount
Income distribution – asymmetric
Ieņēmumu (virspeļņas) sadale – asimetriska

Pre-seed and Seed funds:


  • Three  5th generation pre-seed and seed venture capital fund managers to be selected through an open, transparent, and non-discriminatory selection procedure;
  • Altum’s funding for each fund is EUR 18.6 million, an additional 10% (EUR 2.1 million) pre-seed and seed fund managers will have to attract from private investors;
  • Submission of applications for pre-seed and seed fund managers is planned until 31 January, 2024.


Late seed and Growth funds:


  • Procurement and Selection documentation for one Late-seed and one Growth fund manager are planned to be published in December, 2023;
  • Altum’s funding for the late-seed fund is EUR 12.4 million, the selected fund manager will additionally have to attract 40% (EUR 8.3 million) from private investors;
  • Altum’s funding for the growth fund is EUR 24.8 million, the selected fund manager will additionally have to attract 40% (EUR 16.5 million) from private investors;
  • Submission of applications for Late seed and Growth fund managers is planned until 29 February, 2024.

* The terms provided are very indicative and may be changed


Stay updated with the latest developments on and follow @AltumLV on LinkedIn, where we will provide ongoing information about the fund manager selection process.


You can access the regulation of Cabinet of Ministers for “Private equity and Venture capital investments” here:

Fund managers


To find out more information about available financing and how to acquire it, contact fund managers.