The drill. team dealing with venture capital transactions is one of the strongest in Latvia as our experts boast more than 12 years of experience in implementing this type of transactions in various business areas.
We advise venture capital funds, business angels and companies seeking to attract venture capital on investment strategy implementation issues.
We support our clients both in the seed and growth capital stages, as well as in the next investment rounds until the successful realization of investments. We will also assist in the operation of venture capital funds and the implementation of state aid programmes, which are strictly regulated sectors.
drill.’s Venture Capital practice team provided legal support to one of the most successful Latvian start-ups, SIA Nordigen Solutions, on raising EUR 2.1 million from several international venture capital funds, including Black Pearls VC, Inventure, Highgoal Capital, ID4 Ventures, Superangel, Calchas Holding, and business angels, including Artis Kehris, Henry Nilert, Gerri Kodres and Riivo Anton.
SIA Nordigen Solutions is an authorised payment institution that has obtained the first licence in Latvia for the operation of a payment institution with the right to provide account information services in 31 European countries. The licence was issued by the Financial and Capital Market Commission, which regulates and supervises the players of the Latvian financial sector. This type of payment service is considered to be one of the latest types of payment service, which allows customers to see aggregated information on the content of their payment accounts located in different banks and payment service providers.
Nordigen launched the first-ever free open banking API platform in Europe that provides connections to all major European banks. Since its inception in 2016, Nordigen has been an industry leader in developing solutions to turn raw transaction data into actionable insight.
drill.’s Venture Capital expert team advised Nordigen on investment deal made with several international venture capital funds, including Black Pearls VC, Inventure, Highgoal Capital, ID4 Ventures, Superangel, Calchas Holding, and business angels, including Artis Kehris, Henry Nilert, Gerri Kodres and Riivo Anton. As a result of the transaction, an investment of EUR 2.1 million was made in return for Nordigen shares.
drill.’s Venture Capital expert team assisted Nordigen in preparing and coordinating with existing and new shareholders all documents related to the investment, including the investment agreement and the shareholder agreement, as well as concluding the transaction and resolving post-closing issues.
Lawyers involved were partner Ramona Miglāne and senior associate Edgars Turlajs.
For more detailed information on Nordigen’s success story, see here.
Our Venture Capital practice team advised ZGI-4, a growth capital fund managed by ZGI Capital, on its investment in Bio Investments, a manufacturer of microbiological fertilisers. As a result of the investment, the growth capital fund ZGI-4, managed by ZGI Capital, has supported the development of the plant by investing in a sustainable sector. The green economy and the organic food market are experiencing rapid growth. Ecological thinking in the EU results in bans on synthetic pesticides, thus opening up a wide range of opportunities for the company’s products. The company’s experts can boast a wealth of experience that is decades-long, and company’s collection of microorganisms is one of the largest in Europe. Regular research, both in institutes and in the field, shows yield increases and improved plant health. The increase in capacity will allow the target markets to expand and serve professional farmers.
ZGI Capital ranks among most experienced managers of venture capital funds in the Baltics and has been operating since 2005. ZGI Capital currently manages several alternative investment funds, including the fourth generation growth venture capital fund ZGI-4.
Our Venture Capital practice team advised ZGI Capital throughout all stages of the transaction, including legal due diligence as well as developed and coordinated all investment-related documents and settled post-transaction issues.
LVCA and LatBAN have nominated drill. as Legal Adviser of the Year 2020. We are deeply honoured to find ourselves in the company of the strongest venture capital legal advisers in Latvia!
Our Venture Capital practice team advised ZGI-4, a growth capital fund managed by ZGI Capital, on its investment in GoWood, the world’s largest producer of winter fuel products, that runs 2 plants. In the production process, GoWood uses solar energy and wood residues. Sustainable forestry and green renewable energy are the factors that propels the GoWood team.
ZGI Capital ranks among most experienced managers of venture capital funds in the Baltics and has been operating since 2005. ZGI Capital currently manages several alternative investment funds, including the fourth generation growth venture capital fund ZGI-4.
Our Venture Capital practice team advised ZGI Capital throughout all stages of the transaction, including legal due diligence as well as developed and coordinated all investment-related documents and settled post-transaction issues.
LVCA and LatBAN have nominated drill. as Legal Adviser of the Year 2020 for this transaction. We are deeply honoured to find ourselves in the company of the strongest venture capital legal advisers in Latvia!
HansaMatrix is a fast-growing, high-technology company offering electronic product and system design, industrialization and complete manufacturing services in data networking, Internet of Things, industrial segments and other high added value business segments. HansaMatrix shares are listed on the regulated market.
ZGI Capital ranks among most experienced managers of venture capital funds in the Baltics and has been operating since 2005. ZGI Capital currently manages the fourth generation growth venture capital fund “ZGI-4”.
Our Venture Capital practice team advised ZGI Capital throughout all stages of the transaction, including legal due diligence as well as preparing and negotiating all investment-related documents.
Our Venture Capital practice team advised ZGI-3, a venture capital fund managed by ZGI Capital, in connection with third-round investment made by BaltCap, one of the leading venture capital funds in the Baltics, in SIA KOOL Latvia. As a result of the transaction, BaltCap acquired a 30% stake in SIA KOOL Latvia.
Our experts advised ZGI-3, the venture capital fund, as an existing shareholder of SIA KOOL Latvia throughout all stages of the transaction, as well as negotiated all documents related to the investment, including the investment agreement and the shareholder agreement, as well as advised on issues related to the conclusion and performance of the transaction.
KOOL is a new innovative brand in the Latvian oil retail market with a fresh and modern concept. Since its establishment, KOOL has attracted more than € 7.5 million in funding from various local entrepreneurs as well as private and institutional investors.
ZGI Capital is an alternative investment fund manager that manages ZGI-3 and ZGI-4 funds established in cooperation with the Development Finance Institution ALTUM. ALTUM is a state-owned development finance institution that provides state support to certain target groups in the form of financial instruments (through loans, guarantees, investments in venture capital funds, etc.).
SIA Mobilly is a licensed electronic money institution with the right to provide payment services. Its licence was issued by the Financial and Capital Market Commission, which regulates and supervises the participants of the Latvian financial sector. SIA Mobilly owns the most convenient and user-friendly payment system in Latvia, which facilitates the daily lives of more than 250,000 people and provides an opportunity for mobile phone users to make payments wherever mobile communications are available.
Our team of Venture Capital experts advised on the financing transaction of SIA Mobilly, which was concluded with the fourth largest bank in Latvia, AS Citadele banka. As a result of the transaction, AS Citadele banka acquired 12.5% of the SIA Mobilly shares. The purpose of the transaction was, among other things, to integrate Mobilly’s mobile payment services into the services offered by the Citadele Group, as well as to develop new mobile payment services.
Our Venture Capital team helped SIA Mobilly prepare and negotiate all documents related to the bank’s investment, including the investment agreement and the shareholder agreement, with the existing and new shareholders, as well as to close the transaction and resolve post-closing issues.
Our Venture Capital team assisted the venture capital fund ZGI-3 in a transaction under which the fund exited from SIA Art Fairs Service, a start-up exhibition service provider, as well as prepared and negotiated all transaction documents.
Venture capital fund ZGI-3 provided financing to SIA Art Fairs Service in the amount of EUR 280,000 within the framework of the European Union Funds Operating Programme “Entrepreneurship and Innovation” in cooperation with ALTUM and the European Regional Development Fund.
ZGI Capital has received the award of the Latvian Venture Capital Association and the Latvian Business Angels Network “Exit of 2017” for this transaction.
AS Biotehniskais Centrs, which is the leading manufacturer of bioreactors and other special biotechnological equipment in the Baltics, has attracted investments in the amount of EUR 200 thousand from the venture capital fund ZGI-3 managed by ZGI Capital.
Our Venture Capital practice team advised the venture capital fund ZGI-3 throughout all stages of the transaction, including legal due diligence of AS Biotehniskais centrs, as well as prepared and negotiated all investment-related documents.
ZGI Capital is an alternative investment fund manager that manages ZGI-3 and ZGI-4 funds established in cooperation with the Development Financial Institution ALTUM. ALTUM is a state-owned development finance institution that provides state support to certain target groups in the form of financial instruments (through loans, guarantees, investments in venture capital funds, etc.).
On 21 October 2016, Mobilly, one of the largest mobile payment service providers in Latvia, announced that it has managed to attract large investments in the amount of 1.1 million euro, including 700 thousand euro from the venture capital fund ZGI-3 to expand its operations. By signing an investment agreement with the venture capital fund ZGI-3, Mobilly became the largest investment attractor in the FinTech sector in Latvia in 2016.
Our Venture Capital practice team advised the venture capital fund ZGI-3 throughout all stages of the investment transaction, including legal due diligence, as well as the preparation and negotiation of all investment-related documents.
Venture capital fund ZGI-3 makes investments in cooperation with the state-owned Development Finance Institution Altum and the European Regional Development Fund within the framework of the European Union Funds Operating Programme “Entrepreneurship and Innovation” for 2007-2013, which is implemented with co-financing from the European Regional Development Fund.
Our Venture Capital practice team successfully represented venture capital fund manager ZGI Capital in the transaction under which its managed fund ZGI-3 provided capital and mezzanine financing to the innovative dairy producer Baltic Dairy Board.
Our Venture Capital experts advised the client at all stages of the transaction, including legal due diligence, structuring the transaction, taking into account existing venture capital investments and co-financing from the Latvian Investment and Development Agency, as well as drafted all transaction documents.
The transaction was carried out within the framework of the European Union Funds Operating Programme “Entrepreneurship and Innovation” for the programming period 2007-2013, which is implemented with the co-financing of the European Regional Development Fund.
Our Venture Capital team represented the venture capital fund FlyCap in financing HansaMatrix, one of the leading high-tech product development and manufacturing companies in the Nordic and Baltic countries, to expand the existing plant in Ogre and finance the company’s working capital.
Venture capital fund FlyCap provided its financing in cooperation with the state-owned Development Finance Institution Altum and the European Regional Development Fund within the framework of the European Union Funds Operating Programme “Entrepreneurship and Innovation” for the programming period 2007-2013, which is implemented with co-financing from the European Regional Development Fund.
Our experts advised the client at all stages of the transaction, including legal due diligence, structuring the transaction and also drafted all transaction documents.
We are proud to emphasize that this transaction was nominated by the Latvian Venture Capital Association and the Latvian Business Angels Network as the “Investment of the Year 2015”.
The main purpose of the prohibition on financing stated in Article 241 of the Commercial Law is to protect the creditors and minority shareholders of a joint stock company, but in the event of reorganization and reduction of the share capital, they are protected by other provisions of the Commercial Law. Therefore, the reorganisation and reduction of the share capital carried out in accordance with the provisions of the Commercial Law do not preclude the prohibition on financing.
See:
https://juristavards.lv/doc/190991-par-aizliegumu-akciju-sabiedribai-finanset-savu-akciju-iegadi/