The study presents the results of a study on reasons why and when Latvian Venture Capital funds (VCFs) provide quasi-equity instead of straight equity to companies. Previous research shows that in the case of straight equity VCFs provide more value-adding assistance to portfolio companies to help them to grow. Presumably, VCFs funded by public resources as it is in Latvia should be designed to provide most of the value-adding assistance. Instead of that less than half of all investments are provided as straight equity. The researchers conducted a survey of 5 VCF managers regarding their transactions from 2010-2017. The results show that several factors influence the choice of a particular financial instrument. Most important from them are an inability to agree on valuation of the company between VCF and owners of the company and market conditions and practices.