Startups in Latvia continue to grow and are becoming an increasingly important driver of the economy and innovation, according to the findings of the annual industry study by the Latvian Startup Association "Startin.LV".
At the end of 2025, there were 569 startups operating in Latvia. Although the total number of companies has not grown significantly in recent years, the sector's contribution to the economy continues to grow in terms of turnover, employment and tax revenue, the association said.
According to 2024 data, the total turnover of start-ups reached €610.5 million, which is a 15% increase compared to the previous year. Fourteen mature companies exceeded the €10 million turnover threshold, together accounting for 62% of the sector's total turnover. This confirms that companies with the ability to measure themselves and compete at an international level are emerging in Latvia, the association noted.
In 2025, start-ups paid €110.4 million in taxes to the state budget, which, according to the association, is a significant increase compared to €88 million in 2024.
The number of people employed in the sector also continues to grow, from 4,750 to 5,101. The average gross salary for these highly skilled workers reached around €2,820, significantly exceeding the national average. In 2024, one employee generated an average turnover of €134,000, which clearly highlights the high productivity of the start-up sector, the association noted.
Particularly noteworthy is the science-intensive or "deeptech" start-up segment, which already accounts for 26% of the total ecosystem. In 2024, these companies achieved a turnover of 149 million euros, employed 1,538 people in 2025, and paid 35.4 million euros in taxes. The three largest investments in 2025 were made in deeptech companies, highlighting the long-term potential for the development of technologically complex solutions.
In 2025, Latvian startups attracted approximately €78 million in investments. The largest deal was a €54 million investment in Aerones, confirming the ability of Latvian companies to attract significant international capital. Another significant milestone was the launch of active investment activities in 2025 by three Altum-supported venture capital funds: BADideas, Buildit, and Outlast Fund. In the coming years, they plan to invest more than €62 million in early-stage companies.
Start-ups are currently the driving force behind the innovation ecosystem. creating globally competitive products, testing bold ideas in real markets, and inspiring traditional industries—defense, energy, mobility, and digital services—to transform more rapidly. For this development to be sustainable, state-owned companies and institutions must also become increasingly involved in cooperation with start-ups, both by implementing pilot projects and by using innovative procurement solutions. This is a clear signal that the state is not just talking about innovation, but is itself becoming a significant customer and partner for new technologies," said Ieva Jāgere, Director of the Investment and Development Agency of Latvia.
The study also includes a broad overview of the activities of 24 organizations in the start-up ecosystem – public administration institutions, communities, investors, and universities – in the sector. The activity of these participants is essential for the sustainable development of the ecosystem, as it strengthens cooperation, promotes knowledge transfer and creates new start-ups, noted Startin.LV.
At the same time, the sector is still in its early stages of development and faces a number of challenges. The stagnation in the number of start-ups indicates a need to strengthen early-stage support instruments.
Data on business owners point to gender inequality barriers. Similarly, although there is growth in the knowledge-intensive business segment, it is still difficult for these businesses to attract funding, and there are systemic barriers to their development that require targeted action to overcome, the association said.
"This is the moment for targeted and coordinated action. It is necessary to strengthen early-stage support mechanisms, thereby promoting the formation of new teams and creating a more inclusive environment for future founders. Overall, we see that the ecosystem is ready for the next wave of startup development, but this requires targeted decisions by policymakers and consistent implementation," commented Roberts Alhimionoks, Executive Director of the Latvian Startup Association "Startin.LV."
The annual study on the Latvian startup ecosystem, or "Latvian Startup Report 2025," was created with the support of the Latvian Investment and Development Agency, the Riga Investment and Tourism Agency, and the Ministry of Economics, as well as contributions from several partners involved.
The study is available here.
Translated with DeepL.com (free version)