A second business in Latvia signs agreement on start-up funding provision
Latvian Fintech start-up Nordigen has signed an agreement with Investment and Development Agency of Latvia on provision of start-up financing for attraction of highly-qualified workforce. Nordigen is the second start-up company in Latvia that will receive this funding, as confirmed by the company’s representative Maija Anna Ludbārža.
Funding will be received as part of Latvia’s Law on Aid for the Activities of Start-up Companies, which came to force 1 January 2017. The goal of this law is contributing to the creation of rapidly-growing start-up companies in Latvia, Ludbārža reminds. The first company to receive state support was Dripit. Ludbārža says the development of the law included participation from several of Latvia’s start-up organizations, including Startin.lv, Techhub Riga, the largest tech-conference in Baltic States Techchill and others. «Our goal is making sure Latvia becomes 1st choice for start-up companies in Baltic States. The aforementioned law forms the foundation for development of such companies. By implementing specific support programmes for this group of companies, we expect at least 30 such companies with roughly 160 highly-qualified workers to appear in Latvia every year,» says Latvia’s Economy Minister Arvils Ašeradens.
The total available funding for the programme is around EUR 1,603,665, which comes from European Regional Development Fund and state budget finances. Maximum intensity for this support is 45%. One of the main criteria for allocation support is the presence of qualified venture capital investors worth at least EUR 30,000 in the start-up company’s base capital in the year of submission of the request for support. This is meant to prove the longevity of the business idea.
In September 2018, Nordigen attracted EUR 700,000 of investments from Finnish venture capital fund Inventure and Europe’s leading seed investor Seedcamp. This is the largest investment in the company’s history, exceeding last year’s attracted EUR 150,000 from Change Ventures venture capital foundation.
«Nordigen is at the start of its path. The company’s potential is enormous is proven by high industrial indexes and growing recognition, as well as the commitment from Nordigen team. We have begun growing rapidly. Because of that, we have commenced searching for talented people willing to be part of a globally ambitious company,» comments Nordigen administrative manager Ieva Gradbe.
The majority of investments will be used for geographical expansion of the market. The next countries in Nordigen’s plan include Brazil, South Africa, USA and UK.