641 companies and Startup teams qualify for entry into the first ALTUM acceleration fund programmes

In September, the evaluation of logging and business projects in Latvia was concluded for the first time in public start-ups in Latvia. Three fund managers Overkill Ventures, Buildit Latvia and Commercialization Reactor more than 600 applications have been received, which is a very high interest and exceeds the initial expectations.
In the first admission, 641 companies and Startup teams applied for three acceleration funds, less than 30 of them already acquired a place in the accelerated programme and will be eligible for: PreSeed or pre-seed investment. At the same time, the admission will continue until 2021: each fund manager will launch five admission fund programmes with a total of 150 companies and Startup teams.
The acceleration funds selected by the development finance institution ALTUM in the public selection year are eur 15 million from the European Regional Development Fund. In addition to this, fund managers have successfully attracted another eur 1.35 million from private investors, bringing together investment funds of eur 16,35 million. Consequently, this is the largest venture capital available in Latvia for early stage business projects.
Juris Vaskanan, ALTUM Board Member:
“Latvia has become part of global venture capital in the field of global accelerations funds, as demonstrated by the real interest of both local and foreign teams in our first acceleration programmes. At the same time, such interest also accurately characterises the intense competition in this area, which, moreover, does not have any geographical boundaries – Latvian acceleration programmes compete with foreign accelerators, business angels, venture capital funds and other financial support programmes around the world. Similarly, every Latvian start-up company is competing globally with start-ups from around the world. We see that Latvia's brilliant minds, who have qualified for the acceleration programme with the first attempt, also participate equally in this competition. '
Among all applicants 40% were Latvian representatives or mixed teams, 40% - teams from Central and Eastern Europe, while 20% - from Western Europe, USA and other countries. From teams qualified for the first programmes, 70% is Latvian representatives or mixed teams, 10% - teams from Central and Eastern Europe, while 20% - from THE US and other countries. Successful teams are also represented by members from Sweden, Poland, Denmark, Ukraine, Great Britain and other countries. To qualify for PreSeed for investments, the company must be registered and work in Latvia.
The sectoral spectrum describing the projects submitted is the broadest: from biomedicine and robotics to transport and sport.
By describing the most frequent reasons that prevented teams from qualifying for acceleration programs, Juris Vaskanes explains: “part of the business projects that were bidding for the acceleration were too green and still well enough. There were also well-developed and self-sufficient companies which, by their very nature, cannot have added value, so that a number of other financial solutions are more appropriate for the implementation of these projects. It is also necessary to mention the age of companies over 3 years of age and the lack of a potential for rapid growth of business. But also for the development OF such business, ALTUM offers other support programmes. It is also essential that each of the three funds focuses on specific sectors and business projects outside of them may not qualify for participation in the programme. The capacity of team skills, including business understanding and language knowledge, should also be mentioned. However, it is essential that the acceleration programmes will be operational until 2021, so i call on the work of new business projects to be developed and logged in. '
The essence of the acceleration is to help to recover from promising high-value early business. The new funds are focused on the commercialisation phase of the start-up company, in addition to the innovation and technology-intensive business segment. Unlike classic venture capital funds, accelerators not only invest but also provide early business with the necessary acceleration services for further growth. For this reason, the managers of acceleration funds select companies that can help the acceleration fund team with the rapid development of the start-up company – they are specialised mentors from around the world, sales and investors' contacts, technological support, prototyping, market segmentation etc. Each of the accelerated funds also provides: PreSeed and Seed or seed investment opportunities.
Fund managers select the most competitive and potentially successful business projects with the most motivated business teams. Commercialization Reactor specialized in commercialisation of science, or Deep-Tech. Buildit Latvia is oriented to Hardware/Internet-of-Things the direction. In turn Overkill Ventures working with working environment and business efficiency software the direction.
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About ALTUM
The development finance institution ALTUM is a Latvian state-owned capital company that provides support to certain target groups in the form of financial instruments with the aid of State aid financial instruments (loans, guarantees, investments in venture capital funds, etc.), complementing it with non-financial support (consultancy, mentoring) as well as selling other State delegated functions within the framework of specific programmes. In June 2017, ALTUM received the international credit rating company Moody's long-term credit rating for Baa1 State capital company, which confirms ALTUM's stable financial situation. In turn, ON October 24, 2017, ALTUM's bonds were ̧ into a regulated market - the Nasdaq Riga Baltic para list.