In 2022, Latvian start-ups raised €61 million in investments. In 2021, start-ups contributed €43.6 million in taxes to the general state budget. Of this, €27.10 million came from six to 10-year-old businesses. As seen in other sectors, 2022 is split into two phases – before and after the war in Ukraine. Until the war, the outlook was very rosy, but more than one start-up admits that the war has affected the average investment deals in many areas, including the investment environment. Investors have become more cautious.

Stock market prices have dropped significantly last year and the macroeconomic slowdown has been tough for many founders and investors. Investors are trying to understand how much money is reasonable to invest in these conditions, so many start-up teams are tightening their belts and biding their time to avoid attracting new investments.

The amount of investment attracted is much lower than in 2021 when a record of €247 million was achieved. Although the amount of investments is not nearly as large, the average investment deal recorded last year exceeds that.

War-related sanctions are also affecting holders of the so-called start-up visa. Previously, many such temporary residence permit holders came from Russia. However, in 2022, only 30 start-up founders of foreign origin received this visa. Compared to 2021, when 135 people were issued start-up visas, this is a significant decrease.

Year’s Top 5 biggest investments:

• Juro, a legal technology start-up, raised $23 million (€20.2 million) in a Series B investment round. The funding is intended for the development of Juro’s browser-based contract automation platform.
• Giraffe360, a robotics start-up, raised $16 million (€15.3 million) from Founders Fund, a San Francisco venture capital firm with a portfolio including Airbnb, Spotify and SpaceX. Giraffe360’s latest camera will further facilitate and improve the way homes are advertised online in the real estate industry.
• Aerones, a robotics start-up, raised $9 million (€8.6 million) in seed capital.
• Colizeum raised $8.4 million (€7.5 million) to introduce tokenized gaming modes.
• Salto X, a start-up co-founded by Krists Avots, raised a €5.2 million seed investment to create a remote worker-friendly alternative to stock options. The start-up offers companies to issue blockchain-registered tokens, replicating the economic value of stock options and simplifying their issuance to employees in different jurisdictions.

Therefore, the Riga Investment and Tourism Agency is launching a new program that will offer foreign companies the to spend a week in Riga and learn more about its business opportunities. It is a chance to explore Riga’s investment environment in more detail and receive a tailor-made visit agenda that will include meetings with city leadership, business consultancies, and key-opinion leaders relevant to your industry as well as company visits.

To apply, a company should meet the following criteria:

• works in a technology and innovation-based industry
• annual turnover exceeds 10 million euros
• employs more than 50 people
• currently has no registered legal structure or subsidiary in Latvia
• is interested in discovering new regions and business locations for future business development
• is ready to spend a working week in Riga with a team of up to five colleagues

Companies should apply online by filling out this FORM.