A sec­ond busi­ness in Latvia signs agree­ment on start-up fund­ing pro­vi­sion

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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.

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