Decision Made in Procurement Process for Selecting Venture Capital Fund Managers

The public procurement by ALTUM for the selection of venture capital fund managers has concluded, and the rights to sign contracts have been awarded to the ssociation of persons BUILDIT, BADideas.fund, and VNTRS Consulting AB.

In the near future, contracts will be signed with the selected fund managers, who over the next five years will make investments in promising and viable pre-seed and seed-stage companies. The total amount of public funding is €55.8 million, which comes from ERDF (European Regional Development Fund) resources. Each fund will amount to €20.67 million, of which 10% will be sourced from private investors.

Agreement signed for services of a Growth Stage Private Equity Fund Manager 

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.

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:

• Documentation on the Early Growth Stage Fund manager`s selection: https://www.eis.gov.lv/EKEIS/Supplier/Procurement/113967
• Documentation on the Growth Stage Fund manager`s selection: https://www.eis.gov.lv/EKEIS/Supplier/Procurement/113974

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 5g@altum.lv 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: https://www.eis.gov.lv/EKEIS/Supplier/Procurement/112614

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: https://www.eis.gov.lv/EKEIS/Supplier/Procurement/112614

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.