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Latvia

Latvia Startup Funding Guide 2026

Funding Amount
€300K loans to €225M VC fund access

Latvia offers a robust ecosystem of startup and business funding through state-backed loans, venture capital, export grants, and tax incentives. This complete guide covers all major programs available in 2026.

Major Funding Programs

1. ALTUM Innovation Product Loans

Provider: ALTUM (State Development Finance Institution)

Amount: €300,000 to €5 million per business

Capital Discount: 30% (max €1.5M)

Interest: 0.9%-1.9% for R&D/prototypes

Best For: SMEs developing innovative or dual-use products

2. Baltic Innovation Fund 3 (BIF 3)

Type: Venture Capital Fund-of-Funds

Total Fund: €225 million (€50M Latvia/Altum + €75M EIF + €50M Estonia + €50M Lithuania)

Expected Impact: €700M total capital for Baltic startups over 5 years

Best For: High-growth tech startups seeking venture capital

3. LIAA Export Support Action Plan

Provider: Investment and Development Agency of Latvia (LIAA)

Amount: Up to €40,000 per year per SME

Co-financing: 60% cost coverage

Duration: Through June 2027 (€13M total budget)

Best For: Innovative SMEs pursuing export markets

Quick Comparison

Program | Type | Amount | Best For

ALTUM Innovation Loans | Loan + Discount | €300K-€5M | Product development, R&D

Baltic Innovation Fund 3 | VC Fund | €225M fund | High-growth tech startups

LIAA Export Support | Grant | €40K/year | Export development

Strategic Approach by Stage

Early-Stage Startups

  1. If developing innovative product: Apply for ALTUM Innovation Loans (€300K-€5M)

  2. If tech startup seeking VC: Build relationships with VCs backed by BIF 3

  3. Consider Business Incubation Support Program (LIAA)

Growth-Stage Companies

  1. Stack ALTUM loans with LIAA export support for international expansion

  2. If exporting: Access LIAA Export Support (€40K/year, renewable)

  3. For major growth capital: Pursue VCs within BIF 3 ecosystem

Scale-Ups and Large Investments

  1. Consider Large Investment Loans with Capital Discount (€67M program via LIAA/ALTUM)

  2. Explore Special Economic Zones (80% tax rebates)

  3. Continue export support for international market penetration

How to Apply

ALTUM Innovation Loans

  1. Visit www.altum.lv and review Innovation Product Loans

  2. Prepare business plan, innovation description, financial projections

  3. Submit application with required documentation

Baltic Innovation Fund 3

  1. Build relationships with VCs operating in the Baltics

  2. Monitor VC announcements for BIF 3-backed funds

  3. Contact Altum for guidance: www.altum.lv/en/services/enterprises/venture-capital-and-private-equity

LIAA Export Support

  1. Visit www.liaa.gov.lv and review Export Support Action Plan

  2. Prepare export development plan with budget

  3. Submit during open application periods

Key Contacts

ALTUM: www.altum.lv

LIAA: www.liaa.gov.lv

Business Portal: business.gov.lv

Invest in Latvia: investinlatvia.org

Ministry of Economics: www.em.gov.lv

Last updated: February 23, 2026

Common Questions

Latvia offers a range of government-backed funding programs including grants, tax incentives, concessional loans, and equity financing instruments designed to support businesses at various stages of growth. Companies should evaluate each program's eligibility criteria, funding amounts, and application timelines to identify the best fit. Many programs can be combined to create a comprehensive support package, and working with a local advisor familiar with the funding landscape can help maximize the total available benefits for your specific business situation and sector.

Many funding programs in Latvia are accessible to foreign-owned companies, provided they meet specific requirements such as local incorporation, minimum domestic employment levels, or operational presence within the country. Some programs may prioritize locally owned businesses or impose ownership restrictions, so it is important to verify eligibility criteria for each program individually. Establishing a local subsidiary or joint venture with a domestic partner can broaden access to available incentives. Consulting with a local legal or financial advisor is recommended to navigate the specific regulatory requirements.

Latvia's startup visa enables non-EU entrepreneurs to establish operations within the EU single market through streamlined residency applications. Founders gain unrestricted access to Horizon Europe grants, EIC programmes, and cross-border venture capital. Lower living costs compared to Western European hubs, combined with digital government infrastructure and favorable reinvested profit taxation, create compelling operational economics.

ALTUM channels EU structural funds and national allocations through innovation loans with deferred repayment, credit guarantees for startups lacking collateral, and acceleration grants. It manages the Baltic Innovation Fund deploying venture capital through selected fund managers into high-growth Latvian technology enterprises. This diversified portfolio enables tailored financing across different venture stages.

References

  1. Support for Development and Innovation. business.gov.lv (2025). View source
  2. ALTUM Startup Loans. ALTUM (2025). View source
  3. Baltic Innovation Fund 3. EIF (2026). View source
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