The aim of the study was to reveal current status of the Venture Capital (VC) market in Latvia and to make recommendations for policymakers regarding desirable actions or refraining from them to help the market to mature. The study reveals that even 14 years after first venture capital (VC) funds launched in Latvia still their funding is largely dependent on governmental/European Union (public) resources. There are no VC funds in Latvia without public capital. There are no signs that during next years any considerable private VC fund will commence it`s activities in Latvia. The availability of EU funds after 2020 is unclear. A number of studies have shown that venture capital investments in new and innovative enterprises have a positive macroeconomic impact on economic growth and job creation. Therefore it is necessary from today`s perspective to make VC market in Latvia more sustainable.