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At its meeting on 12 March 2024, the Cabinet of Ministers took note of the information report prepared by the Ministry of Economics (hereinafter - EM) on the necessary support to promote the start-up ecosystem, and delegated EM to conclude co-operation agreements with organisations representing the Latvian start-up ecosystem.

"Start-ups play a key role in the overall innovation ecosystem as they provide innovative business ideas and contribute to a faster economic transition towards a knowledge-based economy. Therefore, it is important not only to strengthen cooperation with the representatives of the start-up environment, but also to create a pro-business environment through a common strategy, which is motivating for the creation of start-ups, to develop their innovations, which create preconditions for the growth of the Latvian economy," emphasises Viktors Valainis, Minister of Economy.

Latvia's start-up ecosystem consists of at least 626 start-ups, more than half of which operate in the information and communication services sector and more than 20% in manufacturing and professional, scientific and technical services. According to the Latvian Startups Association, Latvian startups have attracted EUR 620 million in investments over the last 10 years. In 2022 alone, Latvian startups have attracted EUR 93 million in investments and have secured more than 3,200 jobs.

In order to facilitate further economic development of the start-up sector and attraction of foreign investments to start-ups, this year the Ministry of Economy and Finance intends to conclude six co-operation agreements, allocating EUR 400 thousand. The EU will also provide support to organisations representing the start-up ecosystem with 400 co-operation agreements.

The Latvian Start-up Association will receive EUR 100 000. The amount of EUR 100 million will be used to organise the internationally renowned "Startup Day"; networking events for the startup ecosystem; working visits for foreign investors to Latvia to get acquainted with the local ecosystem and startups and to inform about investment opportunities in Latvian venture capital funds and their companies, etc.

Within the framework of the TechHub contract, EUR 100 thousand will be granted to. The project will also include EUR 100 million for an early-stage idea validation programme consisting of a course on startups and a team pre-acceleration programme. TechChill will receive €88k. Within the €88 million, TechChill plans to organise the TechChill 2024 conference to promote the development of start-ups and attract foreign investment.

Riga Technical University - 40 thous. The EUR 40 million will be used to implement training cycles for start-ups. The Latvian Private Equity and Venture Capital Association will provide EUR 23,000. In the amount of EUR 23 million, the Private Private Equity Association will organise and implement, in cooperation with a higher education institution, a training course for students on opportunity capital; organise training for opportunity capital investors, as well as visits for representatives of industry organisations to companies in the portfolio of opportunity capital funds.

Latvian Business Angel Network LatBAN will provide EUR 49 thousand for the financing of the agreement. For the amount of EUR 49 million, LatBAN will organise training for angel investors and startup venture capital investors; hold regular consultation sessions; and organise the "Investor of the Year" event.
The planned support to the start-up ecosystem will attract additional investment of at least €50 million and create 150 new jobs in 2024.

The planned support to the start-up ecosystem will attract additional investment of at least €50 million and create 150 new jobs in 2024.

As previously reported, on 7 September 2022, the MoE, LIAA, Altum and organisations representing the interests of Latvian start-ups signed a Memorandum of Cooperation for the implementation of the Strategy for the Development of the Start-up Ecosystem 2022-2025. The Strategy sets out a series of activities aimed at promoting the development of start-ups and attracting talent to start-ups, such as the development of various support measures, the implementation of internationally scalable activities, measures to attract start-up investments, etc.

Further information on the EM Information Report "On the necessary support to foster the start-up ecosystem" and the cooperation with the start-up ecosystem implemented so far can be found on the Single Legislative Portal.