Latvian Startups to Watch: Innovations and Growth Opportunities in 2023

Latvian Startup Scene Heats Up: ten Companies to watch in 2025

September 29, 2025

Riga, Latvia – A new wave of innovation is sweeping across Latvia, as the nation’s startup ecosystem experiences unprecedented growth. Recent data reveals a staggering 623% increase in startup funding during the first half of 2025, jumping from €9.7 million in 2024 to €70.1 million. This surge in investment is spotlighting a cohort of enterprising companies poised for significant impact, notably in the areas of deeptech, defense, and Artificial Intelligence.

The Rising Tide of Latvian Innovation

The Latvian startup landscape is gaining prominence on the global stage,attracting attention from venture capitalists and industry leaders alike. Experts attribute this growth to a combination of factors,including a highly skilled workforce,a supportive government environment,and increasing access to funding opportunities. According to a report by Investment Latvia, the contry is rapidly becoming a hub for technological advancement. The influx of capital is fueling the advancement of cutting-edge solutions across diverse sectors.

Spotlight on Ten Promising Startups

Labs of Latvia has compiled a list of ten Latvian startups demonstrating exceptional potential and drawing significant investor interest. these companies are at the forefront of innovation, tackling complex challenges with innovative solutions:

Startup	Sector	Key Focus
Trace.Space	deeptech	AI-powered hardware specification system
Handwave	fintech	biometric payment solutions
Origin Robotics	Defencetech	Unmanned aerial systems
The Supply	Marketplace	On-demand white-labeling for supplements
Swotzy	Logistics	Optimized last-mile delivery
RivalSense	AI	Competitive intelligence platform
SUBMerge Baltic	Defencetech	Autonomous underwater drones
Convershake	SaaS	AI-powered knowledge platform
TheoGrowth	AI	AI-kind business knowledge platform
Viangoo	Logistics	Construction site cargo delivery

Among these standouts, SUBMerge Baltic recently secured a victory at TechChill’s 2024 Fifty Founders Battle, demonstrating the growing recognition of Latvian innovation. The competition showcased the country’s ability to produce world-class technologies.

Did You Know? Latvia’s startup ecosystem is growing at a faster rate than many Western European counterparts, driven by its strong technical talent pool and proactive government support.

Pro Tip: Investors are particularly interested in Latvian startups that demonstrate scalability and address global challenges, making these companies attractive investment opportunities.

What impact will this influx of investment have on the Latvian economy? And which of these startups is best positioned for rapid growth in the coming years?

The Broader Context of european Startup Growth

The growth of the Latvian startup scene is part of a broader trend of increasing innovation across Europe. Countries like Estonia, Lithuania, and poland are also experiencing significant growth in their startup ecosystems. This trend is driven by factors such as increased access to funding, a growing pool of skilled talent, and a supportive regulatory environment. The EU’s Digital Single Market initiative, launched in 2015, has played a key role in fostering cross-border collaboration and reducing barriers to entry for startups. The European Innovation Council (EIC) provides funding and support to high-potential startups across Europe, further accelerating innovation.

Frequently Asked Questions about Latvian Startups

• What is driving the growth of the Latvian startup scene? The growth is fueled by increased funding, a skilled workforce, and government support.
• Which sectors are attracting the most investment in Latvia? Deeptech, defense, and Artificial Intelligence are currently the hottest sectors.
• What is the significance of the TechChill Fifty Founders Battle? It’s a key event showcasing Latvia’s innovative startups and attracting international attention.
• How does Latvia compare to other European startup hubs? Latvia is experiencing faster growth than many Western European counterparts.
• What is the role of the EU in supporting Latvian startups? EU initiatives like the Digital Single Market and the EIC provide funding and support.
• what types of challenges do Latvian startups typically face? Access to larger markets and competition from established players are common challenges.
• Where can I find more information about Latvian startups? labs of Latvia is a great resource for information and insights.

Share your thoughts! What are your predictions for the future of the Latvian startup ecosystem? Leave a comment below.

What are the key investment trends shaping Latvia’s startup ecosystem in 2023?

Fintech Disruptors Leading the charge

Latvia’s burgeoning startup ecosystem is increasingly recognized for its strength in fintech. Several companies are making waves, attracting investment and challenging traditional financial models.

* Twino: A leading peer-to-peer lending platform, Twino continues to expand its reach across Europe, offering accessible investment and loan opportunities. Their focus on data-driven risk assessment is a key differentiator. (Keywords: P2P lending, fintech Latvia, investment platform, online loans)

* Sonar: Specializing in fraud detection and prevention, Sonar utilizes machine learning to protect businesses from online payment fraud. Their solutions are particularly relevant in the growing e-commerce sector. (Keywords: fraud prevention, cybersecurity, fintech security, machine learning)

* Printful: While established, Printful’s continued growth and innovation in the print-on-demand space solidify its position as a Latvian fintech success story. They streamline the process for entrepreneurs selling custom merchandise.(Keywords: print on demand, dropshipping, e-commerce fulfillment, online business)

The Rise of GreenTech and Sustainability

beyond fintech, Latvian startups are actively addressing environmental challenges with innovative GreenTech solutions. This sector is gaining momentum,fueled by increasing global demand for sustainable practices.

* Compotech: Developing innovative composite materials from renewable resources, Compotech offers eco-kind alternatives to traditional plastics.Their materials are finding applications in various industries,including construction and automotive. (Keywords: sustainable materials, biocomposites, green technology, renewable resources)

* aerones: Specializing in wind turbine blade maintenance using drones, Aerones considerably reduces downtime and costs compared to traditional methods. This technology is crucial for maximizing the efficiency of renewable energy sources. (Keywords: drone technology, wind turbine maintenance, renewable energy, industrial robotics)

* Lightspace Technology: Pioneering holographic displays, lightspace Technology offers a unique and energy-efficient alternative to traditional screens. Their technology has potential applications in advertising, medical imaging, and entertainment. (Keywords: holographic display, 3D technology, visual technology, energy-efficient displays)

DeepTech and AI Advancements

Latvia is also fostering a growing DeepTech scene, with startups leveraging artificial intelligence and advanced technologies to solve complex problems.

* Sellest: An AI-powered sales intelligence platform, Sellest helps B2B sales teams identify and connect with potential customers. Their platform streamlines the lead generation process and improves sales efficiency. (Keywords: sales intelligence, AI sales, lead generation, B2B marketing)

* Longitude72: Focused on geospatial data analysis, Longitude72 provides valuable insights for various industries, including agriculture, logistics, and urban planning. Their technology helps optimize resource allocation and improve decision-making. (Keywords: geospatial data, data analytics, location intelligence, mapping technology)

* Nordigen: Acquired by GoCardless, Nordigen remains a significant player in open banking, providing access to bank transaction data for fintech companies. Their API enables innovative financial services. (Keywords: open banking, API, fintech infrastructure, banking data)

Healthcare Innovation: Digital Solutions for a Better Future

Latvian startups are also making strides in the healthcare sector, developing digital solutions to improve patient care and streamline healthcare processes.

* Sonarworks: While known for audio calibration software, Sonarworks’ technology is increasingly being applied in healthcare for sound therapy and diagnostic applications. (Keywords: sound therapy, audio calibration, healthcare technology, digital health)

* Asaro: Developing a digital platform for remote patient monitoring, Asaro enables healthcare providers to track patients’ vital signs and provide personalized care remotely. (Keywords: remote patient monitoring, telehealth, digital healthcare, wearable technology)

Investment Landscape and Growth Opportunities

The Latvian startup ecosystem benefits from several factors, including a skilled workforce, a supportive government, and access to EU funding.

* Venture Capital: Investment in Latvian startups has been steadily increasing, with both local and international venture capital firms showing interest. Key investors include BuildIt, Karma Ventures, and SmartCap.

* Government Support: The Latvian government offers various programs and incentives to support startups, including tax breaks, grants, and access to co-working spaces.

* EU Funding: Latvia’s membership in the European Union provides access to EU funding opportunities, such as the European Innovation Council (EIC) and Horizon Europe.

Benefits of Investing in Latvian Startups

Investing in Latvian startups offers several potential benefits:

* High Growth Potential: Many Latvian startups are operating in rapidly growing markets, offering significant potential for return on investment.

* skilled Workforce: Latvia boasts a highly educated and skilled workforce, particularly in technology and engineering.

* Strategic Location: Latvia’s location in Northern Europe provides access to both Eastern and Western markets.

* Competitive Costs: Compared to other European countries, latvia offers relatively low operating costs.