ALTUM invests substantial ERDF and state funds in the venture capital (VC) sector, providing initial funding for early-stage companies to develop an idea or create a product, and providing funding for growth stage companies to increase capacity or expand into new markets if traditional means of financing are not available.
In the 2014-2020 programming period Altum selected and invested in 6 funds – the 4th generation of VC funds in Latvia. With 45 million EUR from ERDF and adding additional national private and public funding the total committed capital of the funds was 97 million EUR. Altum invested in technology accelerators and pre-seed and seed funds, as well as growth stage funds. VC funds have contributed to the establishment of many start-ups with high added value products in IT, sciences and manufacturing industries – investing in 204 companies (145 of those – new companies) from 2018 until 2024. The funds are going to exit their investments by 2026.
These investments help bridge the gap in financing for SMEs that may struggle to access traditional bank loans or other forms of funding due to their higher risk profile. As the capital market matures, the proportion of private funding in venture capital sector increases.
| Competition theme: Growing impact Submitting organisation: Development Finance Institution ALTUM Type of authority: Fund of Funds - National Promotional Institution Financial instrument name: Risk Capital ERDF |
| Country: Latvia Funding source: ERDF Type of financial product: Equity, Quasi-equity Financial size: EUR 45 200 000 |
