EIF IN
LATVIA
Investing in the future of Latvian SMEs
Small and medium-size enterprises are the heart of the Latvian economy.
Representing 99% of all businesses and more than two thirds of the workforce, Latvia's 107,000 SMEs are responsible for driving innovation as well as spurring on growth, and their daily routine is what ensures the competitiveness of the Latvian economy. But to do that, they often need finance.
At the same time, as the smallest actors in the economy, they are often the hardest hit when the economy encounters turbulence, which is why it is so crucial for them to have financial options in order to maintain and eventually grow their businesses.
At the EIF, our mission is to improve access to finance for small businesses across the EU. In addition to building a sustainable venture capital ecosystem through dedicated financial instruments in Latvia, we have been supporting Latvian SMEs using a broad range of instruments, including many tailored to the needs of the Latvian market and designed with the Latvian government and local authorities.
As a result, we've been able to support more than 11,600 Latvian businesses, from a company personalising sound for audiophiles to one offering robotic wind turbine inspection, maintenance and repair solutions, making sure they have the financial fuel they need to pursue their ambitions.
Our intention is to continue to extend this type of support to the Latvian market, making access to finance easier as we collectively move towards a greener, digital and more inclusive Europe.
Success stories


Sonarworks
Success stories

Sonarworks
“We built everything from the ground up. Most of this stuff has never been done by anyone else, and nobody else is trying to do it either,” says Helmuts Bems, co-founder of Sonarworks, a Latvian audio tech company on a mission to bridge the gap between sound creators and listeners. “Essentially we make sound personal,” Helmuts adds. “It’s about using data technology and machine-learning to better understand the end-user and tailor the sound accordingly. Within minutes, we will find a better sound for 82% of people.”
Such individual preferences are related to factors like age (hearing loss), gender (men typically have larger ear canals), geography or music taste. The company’s patented data-driven technology benefits a range of sectors, from sound engineers, artists, producers, creators and other professionals to the consumer-side, like manufacturers of electronic devices. “A bit like Intel Inside,” Helmuts explains. “Today, over 70,000 recording studios globally and 100,000 consumers use our technology. But we’re expecting a lot of growth in the consumer space, with contracts for over 1 million devices already signed.”
Sector ICT
Purpose R&D; Product development
Aerones
“We stuck to the problem, not to the solution,” says Dainis Kruze, co-founder of the Latvian company Aerones, a robotic wind turbine inspection, maintenance and repair solution that enables a two- to three-man team to execute a range of services in hours that would otherwise take days. The concept of Aerones had originally started off as a heavy lift drone project, but quickly shifted to its current focus due to regulatory issues and a lack of market demand.
With the wind energy industry predicted to grow to 30 times its current size, Aerones saw an explosion in demand and now works all around the world for large wind turbine manufacturers. “We are building something completely different from the currently available solutions. The wind industry can provide energy for our children. If we can be a part of making renewable energy more accessible even by only 5 percent, that’s already something valuable.”
Sector Robotics
Purpose Scaling the business
Key figures
Figures as of December 2024
Over
of EIF financing
Transactions with financial intermediaries
Equity investments since inception
Guarantees support since inception
made available for
Latvian businesses
Mandates in focus
The EIF continues to deploy capital in Latvia under a wide range of strategic programmes and mandates. Below are brief summaries of our main initiatives in Latvia.
InvestEU
The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It is helping to mobilise private investments for the EU's policy priorities, such as the European Green Deal and the digital transition. The InvestEU Programme brings together under one roof the multitude of EU financial instruments previously available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
RCR
The EIB’s Risk Capital Resources (RCR) is the core pillar of the EIF’s equity activity. It has enabled us to pursue our equity strategy in the venture capital and growth segments for more than 25 years. In 2024, RCR accounted for about 24% of our equity activity, committing €1.7bn to financial intermediaries.
EFSI
The European Fund for Strategic Investments formed part of the EU's Investment Plan for Europe, launched by the European Commission in 2015. EFSI addressed market gaps in financing - whether in infrastructure, research, energy efficiency or risk finance for SMEs – and mobilised private investment into these areas. Through EFSI the EIF deployed €10.5bn in resources of the European Commission, the EIB and the EIF to improve access to finance for SMEs and small midcaps.
Baltic Innovation Fund
The Baltic Innovation Fund (BIF) is a fund-of-funds initiative of €130m launched by the EIF in close co-operation with the Baltic national promotional institutions – KredEx (Estonia), Altum (Latvia) and Invega (Lithuania) to boost equity investments made into Baltic SMEs with high growth potential. BIF 1 was launched in 2012 and is fully committed. BIF 2, a €156m fund-of-funds initiative building on the success of its predecessor programme, continues to sustain investments into private equity and venture capital funds focused on the Baltic States over a period of 5 years – following its signature in 2019 – to boost equity investments into SMEs with high growth potential.
REPowerEU
The EU launched REPowerEU in 2022 to reduce dependence on fossil-fuel imports and accelerate the green transition. To support the plan, in October 2022, the EIB Group developed a package of measures focussing on renewable energy, energy efficiency, electricity networks and on deepening its engagement in green innovation and breakthrough technologies. Under REPowerEU, the EIF will invest €4.5bn by 2027 through EIF equity products.