Strengths

Weaknesses

● Access to subsidized EU and national resources;

● Potential start-ups to achieve unicorn status;

● Employee stock option law―one of the most innovative in the EU;

● Relatively cheap labor in the technology sectors;

● Startups don’t have a global mindset (hard to sell afterwards)

● Venture capital organizations in Latvia mostly only provide financial support;

● Lack of research involvement―few studies with analytical data on the venture capital industry

● There are no privately funded venture capital funds;

Opportunities

Threats

● The early-stage venture capital industry is an opportunity for growth and higher returns from investors;

● Private equity accounts for a higher percentage of venture capital funding―64%

● The sale of successful start-ups can bring large inflows of investment into the local economy;

● Difficult access to venture capital for later and growth stage start-ups;

● Low investor risk―reluctance of investors to invest in small-scale projects (too high costs and risks);

● Lack of developed financial and stock markets;

● Too much interference by Altum―wants to tell investors where to invest

● Higher taxes than in Lithuania and Estonia;