The paper presents the results of a study on financial instruments used by Latvian Venture Capital Funds’ (VCFs) managers and factors influencing their choice. The researchers surveyed all (five) Latvian VCF managers regarding their transactions from 2010 till 2017. All Latvian VCFs are mainly publicly funded with small private funding share. Previous research shows that in the case of investments in equity, VCFs provide more value-adding assistance to portfolio companies to help them grow. Presumably, VCFs funded by public resources should be designed to provide most of the value-adding assistance. Instead of that, less than half of all Latvian VCFs’ investments are provided as straight equity. The results show that several factors influence the choice of a particular financial instrument in a deal. Most important factors are an inability to agree on valuation of a company between VCF and owners of a company and market conditions and practices.