Expansion Capital

Expansion Capital AIFP is a Riga-based Alternative Investment Fund Manager (AIFM) operating within the Latvian venture capital ecosystem. It plays a pivotal role in managing funds designed to foster the growth of promising companies in Latvia and the broader Baltic region. The firm's activities are closely aligned with national development objectives, particularly through its collaboration with ALTUM, Latvia's state-owned development finance institution.

A key vehicle managed by Expansion Capital AIFP is the "Expansion Capital Fund II," which is part of Latvia's "Next Generation Venture Capital Funds" program. This initiative is co-financed by the European Regional Development Fund (ERDF) and administered by ALTUM. The fund's primary mandate is to provide growth capital to established Latvian companies demonstrating significant scaling potential. It targets businesses with proven business models, strong management teams, and clear strategies for market expansion, often focusing on sectors like technology, advanced manufacturing, and other high-growth industries.

Expansion Capital Fund II is designed to support companies in their expansion phase, enabling them to invest in product development, market entry, and internationalization. The fund's total capital commitment stands at approximately EUR 40 million, equivalent to about USD 43.2 million based on recent exchange rates. Typically, the fund's initial investments range from EUR 1 million to EUR 5 million per company, translating to approximately USD 1.08 million to USD 5.4 million. These investments are structured to provide substantial capital injections that can catalyze significant growth and help companies achieve their next major milestones, with potential for follow-on rounds for successful portfolio companies.