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Venture Capital in Latvia: what we need


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My presentation at a policy discussion hosted by ALTUM and Riga High Tech University about the development of the venture capital industry in Latvia.

Published in: Economy & Finance
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Venture Capital in Latvia: what we need

  1. 1. V E N T U R E C A P I TA L I N L AT V I A : W H AT W E N E E D S M A R T M O N E Y & S I L I C O N VA L L E Y T E R M S A N D R I S K . B E R Z I N S T E C H H U B R I G A
  2. 2. S M A R T M O N E Y • Just two people in Latvian VC industry with any operating experience: Nikolai Adamovitch & Vitaly Rubstein • Everyone else is a banker or financial analyst • Little ability to give startups good operating advice • Startups see when investors have not “walked a mile” in their shoes
  3. 3. S I L I C O N VA L L E Y T E R M S • Investors in Latvia often propose short-sighted, bad terms for entrepreneurs: 1. Want too much % for their money - Disincentive for entrepreneurs to make it big 2. Large liquidation preferences, milestone-based tranche investments, participating preferred share - force next investors to make terms even worse