Altum Capital Fund

Overview

Altum Capital Fund is a Latvian state-owned development finance institution that provides financial support to enterprises and households through various instruments, including loans, guarantees, and investments in venture capital funds. The institution aims to compensate for market shortcomings that cannot be addressed by private financial institutions, thereby fostering economic development and enhancing the mobilization of private capital and financial resources. Altum's funding sources include European Union funds, national public funding, and financing raised from international institutions and capital markets. The fund's venture capital investments focus on sectors with high added value, such as information technology, medicine, science, and the Green Deal. Altum has invested in multiple venture capital funds, including the Baltic Innovation Fund (BIF) I and II, SmartCap, and ILTE, supporting companies at various stages of development. As of December 31, 2024, Altum's investments have contributed to the establishment of numerous startups with high-value-added products in IT, science, and manufacturing sectors. Altum's investment strategy involves selecting fund managers to invest in pre-seed and seed-stage companies, with a maximum investment of EUR 250,000 per project for pre-seed and EUR 1.5 million per project for seed-stage companies. Additionally, Altum invests in growth-stage companies through funds like FLYCAP, with a maximum investment of up to EUR 4 million. The institution also manages the Baltic Capital Market Acceleration Fund (BCMAF), which provides flexible growth and pre-IPO financing combined with hands-on support to strengthen companies at every stage, including capital injection, governance support, operational boost, access to a strong regional network, and preparation for a successful exit. Altum's investment philosophy emphasizes responsible investment practices, integrating environmental, social, and governance (ESG) aspects into the investment decision-making process. The institution evaluates the ESG aspects of potential investments to ensure alignment with sustainability goals and to mitigate potential adverse impacts. This approach reflects Altum's commitment to promoting sustainable economic growth and development in Latvia.