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Feb
28
2015

First public report on Latvian venture funds' investment activity (2007-2015)

€ 34,6 million EUR was invested by Latvian public venture capital (PVC) funds to date. Additionally, PVC has attracted € 56,6  million co-investors to their deals and € 18,2 million private co-investors at fund level.

Today is the first time for Latvian Venture Capital Association publicly releases some numbers about Latvian public venture capital funds' investments. Six funds have reported their data to LVCA - BaltCap, Eko Investors, Expansion Capital, FlyCap, Imprimatur Capital and ZGI Capital. The investment activity of respective funds is presented below.

 

*Editor's note: There have been 91 investments in 88 companies - 3 investments have been repetitive

**Data presented here only depict infortmation submitted to LVCA and is not complete. For instance, BaltCap was investing in Latvia long before PVC was started, while private investors and  funds do not report to LVCA.

Out of six funds presented here, 5 are still open for investments. Eko Investors is managing its existing portfolio, while raising a new fund. It is important to note that before PVC programmes were started there was only one fund investing in the region - BaltCap. PVC programme was initiated to stimulate private investment in venutre capital and its success in this respect can be measured by the amount of private co-investors that it managed to attract.

Data submitted by LVCA indicate that € 34,6 million investment by PVC funds was matched by € 56,6 million private co-investment. Additionally, the € 34,6 million included € 18,2 million private co-investment at fund level:

 Public funding invested in Latvian PVC initiative was mostly financed by EU structural funds, with minor co-financing by Latvian government. For Latvian government to understand the impact created, it is important to consider taxes paid, jobs created and additional revenue generated by companies after receiving PVC investment:

First Latvian pubic venture capital programme was launched in 2005 and so far 5 programmes have been launched or are being planned. A recent research on PVC effectiveness by Avots et al in Latvia has shown that more than enough funding was made available, yet it was not invested fully due to low absoorbtive capacity of local startup ideas. Additionally, part of startups that have already achieved investment readiness underestimate the quality of local PVC investors as 'smart money' in their respective industry and prefer to look for funding abroad.

A brief overview of Latvian PVC programmes is provided below:

One of the goals set by Latvian Venture Capital Association for the nearest future is raising awareness about venture capital as a financing instrument among Latvian population. Providing more information about performance of Latvian PVC funds is a good way to start and attract more potential syndicate partners.