Latvian private equity and venture capital association

To promote the development of venture capital sector in Latvia, six biggest companies that operate in venture capital sector in Latvia - "Baltcap Management Latvia", "EKO Investors", "Hanseatic Capital Latvia", "NCH Advisors INC", "Norvēģijas-Latvijas uzņēmējdarbības attīstības fonds" and "Small Enterprise Assistance Funds", as well as "Latvian Development Agency" have founded public organization "Latvian private equity and venture capital association" (LVCA).

LVCA has the following missions:

• To inform businessmen and society about venture capital financing possibilities,
• To promote the exchange of opinions and experience of the members of the association,
• To represent opinions and interests of the members in negotiations with public authorities,
• To organize and to ensure cooperation with international or other countries' private equity and venture capital associations.

Venture capital is a long-term investment in own capital (or loan connected with own capital) in order to promote company's more rapid growth and development. venture capital sector may be characterized as "business for business development".

Investing funds in an enterprise venture capital fund becomes its co-owner, thus taking a part of commercial venture, but also anticipating bigger rate of return for an elevated venture. Fund as well as other owners is directly interested in company's increase in value. Company's owners and management, who choose this kind of financing, in addition to financial investment also receive venture capital fund's experience, knowledge and contacts, thus promoting success.

The founders of the association are fund management companies that manage investment funds of different value and function profile.

In the end of 2003 Latvian private equity and venture capital association has become an associated member of European Private Equity & Venture Capital Association.