Development Finance Institution ALTUM has announced a public procurement for the selection of three venture capital fund managers for startups, whose task will be to invest in promising and export-oriented companies in Latvia and other European Union countries over the next five years, using European Union funds and private financing.
The funds selected in the procurement will make investments in pre-seed and seed stage companies, and the total amount of public funding for this purpose is 55.8 million euros, respectively 18.6 million euros for each. In addition, each fund will also need to attract private investments in the amount of 2.07 million euros.
ALTUM board member Ieva Jansone – Buka: “With this procurement, we start the selection of venture capital fund managers for the new European funding period, and as the first, we announce the selection of early-stage company fund managers. In the new period, the most substantial funding so far is planned for start-up stage companies. Seeing the previous funds' investments in promising companies such as NACO Technologies, Alternative Plants, RoboEatz, and others, which are already successfully entering international markets, with additional funding for the industry, we see good ground for the emergence of new innovative and competitive companies in Latvia, which will help boost Latvia's growth.”
The selected funds will make investments in pre-seed stage companies, where the maximum investment in one project will be up to 250 thousand euros, and in seed stage companies, where the maximum planned investment in one project will be up to 1.5 million euros, thus promoting the formation and development of startups.
ALTUM Financial Intermediaries Department Manager Ieva Jāgere: “Previous generation fund managers have so far made pre-seed investments in 157 early-stage companies for a total investment amount of 7.8 million euros, with the investment period in them continuing until June 2024. Working with startup support programs, we see their positive effect on the formation of new companies and a successful entrepreneurial environment in Latvia.”
The criteria for the selection of fund managers and other current information, as well as the planned procurement (limited partnership) contract project, are published in the electronic procurement system: https://www.eis.gov.lv/EKEIS/Supplier/Procurement/112614.
Applications are accepted until 31 January 2024, at 10:00.
The selection of venture capital fund managers for startups has been announced in accordance with the Cabinet of Ministers regulations no. 463 “Program “Venture Capital Investments” approved implementation rules” issued on 15 August this year. The public funding intended for the funds is from the European Regional Development Fund.
Additionally, we inform that on 5 December at 11:00, at ALTUM premises, Doma laukums 4, Riga, there will be a supplier meeting, providing an opportunity for all interested fund managers to clarify questions regarding the announced procurement.
Approximately in mid-December this year, ALTUM plans to announce two more procurements, in which one early-stage venture capital fund manager and one growth stage fund manager will be selected, providing both with a total public funding of 37.2 million euros for investments in growth and more mature stage companies.
