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; |