European Union Structural Fund will allocate €93M for investing in Latvian startups

European Union Structural Fund will allocate €93M for investing in Latvian startups. The state financial institution Altum will select managers for setting up venture capital funds. Three early-stage venture capital funds will receive €55,8M, a seed-stage venture capital fund will get €12,4M, and a growth-stage venture capital fund - €24,8M.

At least 300 startups will raise public investment by the end of 2029. In early-stage venture funds, startups can receive up to €250K in pre-seed rounds of investments and up to €1,5M in seed rounds. In a seed venture fund, startups can raise to €2M, and in a growth venture capital fund, up to €4M.

The new funds will also expect to raise additional financing from private and institutional investors. The early stage funds will need to secure 10% additional financing (from €55,8M), and seed-stage and growth-stage venture capital funds - 40% additional financing each (from €12,4M and €24,8M respectively).

Altum is a state-owned development finance institution, which invests in venture capital funds and offers loans, credit guarantees, etc.