The paper presents the results of a study on value adding assistance (VAA) provided by Latvian venture capital Funds (VCFs) to their portfolio companies. There are very few studies regarding venture capital (VC) in Latvia and no papers have focused on the value-adding activities of Latvian VCFs. Previous research on VC in general suggests that the small size of VC funds and dependency on public resources (as is the in case in Latvia) are limiting factors that decrease the amount of time VCF managers devote to their portfolio companies. As part of the study, the researchers conducted a survey of currently active VCF managers. It revealed an additional factor restricting the non-financial impact of VCF managers on their portfolio companies in Latvia. The unwillingness and fear of Latvian entrepreneurs to let VCFs acquire equity in their companies very often results in the recourse to mezzanine funding instead. Mezzanine loans decrease the motivation as well as the rights of VCF managers to provide value adding assistance to portfolio companies.