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“It is important that Lithuanian startups maintain a good growth rate even when investment in them has declined both in our country and globally. Our ecosystem is now the fastest growing in the region, and we will strive to maintain this dynamics. We will make efforts to transform and boost the Lithuanian economy, and to achieve this goal we have introduced the START plan, which also includes measures to develop the startup ecosystem,” says Lukas Savickas, Minister of the Economy and Innovation.
Lithuania’s significant growth
According to Dealroom, the value of startups in Lithuania has increased by 6.8 times over the last five years, which is the best result across Central and Eastern Europe. Latvia ranks second (5.5 times), followed by Ukraine in the third place (4.3 times), Poland in the seventh place (2.6 times), and Estonia in the tenth place (1.9 times).
In terms of per capita value created by startups, Estonia has the highest per capita value (EUR 27,900) in Central and Eastern Europe. Lithuania ranks second (EUR 5,700) and Latvia is fifth (EUR 1,600).
In Lithuania, the evident leaders of the startup ecosystem are Nord Security, Vinted and BCG, which have a unicorn status, i.e. a value of more than EUR 1 billion. Kilo Health is likely to be close to the top three, while PVcase, argyle, Ovoko and TransferGo are considered future unicorns.
Investors focus on fintech and artificial intelligence
Last year, Lithuanian startups raised investment in the amount of EUR 128 million. Compared to 2023, the total amount of investment has decreased, just like in the entire region, but early-stage investment in Lithuania has remained strong. The largest investment of the year was EUR 20 million, raised by Ovoko, an e-commerce platform for selling used car parts.
“These achievements show the ambition and determination of our startups, and demonstrate what we can achieve by acting as a unified ecosystem. Through programmes such as the Startup Lithuania Accelerator with Plug and Play, GameTech with GameBCN, and other EduChallanger and ICT initiatives, we are creating real opportunities for Lithuanian startups to grow and gain a foothold in the global market,” says Karolina Urbonaitė, Head of Startup Lithuania of the Innovation Agency.
Last year, the largest number of venture capital investments in Lithuania went to companies operating in the fintech sector (EUR 48.8 million). Companies in the trade and e-commerce sector attracted EUR 29.7 million, while transport companies secured EUR 23.2 million.
Looking at the segments, AI solutions (EUR 38.8 million), circular economy (EUR 20 million) and payments (EUR 15.6 million) were the most popular among investors.
The impact of Vinted
The Dealroom report also particularly points out the role of Vinted. In October, the company was already valued at EUR 5 billion, halfway to its symbolic status of decacorn, i.e. the value of EUR 10 billion.
The role of Vinted is clearly felt throughout the startup ecosystem, since the former Vinted employees have founded 26 new startups.
The Dealroom report was presented at the annual “Wrap up of 2024” event of the Innovation Agency. The report was initiated by Startup Lithuania, a division of the Innovation Agency, together with a Lithuanian venture capital fund Practica Capital, law firm Triniti, and Kaunas IN agency for business, investment and tourism.
Dealroom report, initiated by Startup Lithuania, a division of Innovation Agency Lithuania.
A full Dealroom overview of the startup ecosystem is available here.
