Latest trends and support opportunities for entrepreneurs in Latvia
Latvia’s business environment is currently experiencing rapid growth. Investments in startups increased by 700% in the first half of 2025, especially in the fields of AI, medical technology and fin-tech. The state offers extensive support – more than €250 million for innovation, digitalization and export, as well as programs with up to €10 million in support for large projects. Interest in defense and dual-use technologies is growing, driven by European security challenges. In parallel, education and mentoring initiatives are developing, helping entrepreneurs and researchers create competitive solutions.
AI and digital transformation
In 2025, more and more entrepreneurs are using artificial intelligence and digital tools to reduce the technical expertise required to start new businesses. This is democratizing their business and allowing smaller players to grow rapidly.
Start-up and startup ecosystem
Latvia's start-up environment is currently very vibrant - in the first half of 2025, investments increased by 700% compared to last year. Three new pre-seed/seed fund opportunities have just been launched - Outlast, BADIdeas and BuildIT. The most promising sectors are also highlighted: AI, medical technologies, fin-tech and defense-tech or defense innovations. Technologies
The demand for technologies that serve both military and civilian purposes — drones, defense solutions — is growing, which is driven by both state investments and European security challenges.
The Ministry of Economy and LIAA programs allocate more than €250 million in 2025 for the modernization, digitalization, innovations and export promotion of companies.
The Large Investment Program offers up to €10 million to support one project (30% capital discount), this year €67 million is planned for the launch of new rounds.
In addition, EU/ALTUM loans and up to 30% capital discount for commercial innovative projects (€300,000–5 million) are available.
Education and networking
The “Venture Catalysts” program continues to promote development of scientific entrepreneurship by offering mentoring and workshops for researchers and innovators. CONNECT Latvija also organizes training and entrepreneurship camps, for example in cooperation with Cambridge.
