Startups pay €372M into the Lithuanian budget – 23% more than in 2022

In 2023, startups active in Lithuania have contributed €372M to the Lithuanian state budget, which is 23% or €70M in excess of the year prior. According to Unicorns Lithuania, the country’s startup sector currently employs 17,600 specialists, whose gross average salary hovers around €3,800.

In 2023, startups active in Lithuania have contributed €372M to the Lithuanian state budget, which is 23% or €70M in excess of the year prior. According to Unicorns Lithuania, the country’s startup sector currently employs 17,600 specialists, whose gross average salary hovers around €3,800.

The latest Dealroom review has found that in the period between 2018 and 2023, the value of the Lithuanian startup ecosystem surged with respect to other European regions – growing more than 7-fold, and reaching €13.7B. In terms of venture capital investment, Lithuania is now second in Central and Eastern Europe – in 2023, the country raised a total of €292.3M in funds.

“Even though 2023 was difficult due to economic uncertainty and the state of geopolitics, Lithuania has for the first time recorded as many as 2 startups raising $100M and no less than 4 tech companies  acquiring other businesses. In addition, tax contributions grew by nearly a quarter, and the number of talents in the sector continued to increase. A successful startup today has to prove not only its capacity for growth, but also for profitability – that’s how quality teams operate,” said Inga Langaitė, CEO of Unicorns Lithuania.

TOP5 startups operating in Lithuania by tax contribution in 2023:

1. Wargaming – €27.42M

2. Vinted – €23.55M

3. Nord Security – €21.33M

4. Baltic Classifieds Group – €12.40M

5. KiloHealth – €13.89M

A further 7 startups have paid more than 4M in taxes over the course of the year (or 1M per quarter on average): Oxylabs, Gurtam, Flo Health, Bored Panda, Hostinger, Surfshark, and Planas Chuliganas. In Q4 2023, startups contributed €97.1M to the state budget, in Q3 – €92.6M, in Q2 – €97.4, in Q1 – €85.1. Their total budget contribution In 2022 amounted to €302.6M. 

TOP5 startups operating in Lithuania by salary in 2023:

1. Game Insight – €9,580 (+2% over 2022)

2. Fullreach – €9,120 (+136% over 2022)

3. Oberlo – €9,060 (+32% over 2022)

4. Tesonet Accelerator – €7,860 (+3 over 2022)

5. Paysolut – €7,640 (+31% over 2022)

In Q4 2023, the average salary in the startup sector reached €4,100, which is 8% higher than in Q3. This may also be attributed to end of year bonuses. The number of employees went down slightly over the quarter – from 17,800 in Q3 2023 to 17,600 in Q4 of the same year. Nevertheless, compared to the year prior, the sector’s workforce grew – in late 2022, startups were employing 17,400 talents. The biggest creators of jobs in Lithuanian in 2023 were Vinted (1,405), Nord Security (1,221), Wargaming (937), Oxylabs (529), and KiloHealth (500).

According Inga Langaitė, the startup sector’s labour market is also being adjusted by global hiring (foreign talents not employed in Lithuania aren’t reflected in general statistics), AI-related opportunities, and optimisation efforts for maximum operational efficiency. 

“Further progress is now impossible without bold solutions, which won’t be the same for all. Since consistent growth may get us into the middle-income trap, we must take decisive action today to enhance Lithuania’s startup sector – from the further simplification of migration procedures to tax reforms boosting our regional competitiveness. If 2023 was for taking a pause and revising processes, in 2024 we expect more initiative from startups. For this, however, we must first create the right conditions,” Inga Langaitė explained.

All data on the performance of startups operating in Lithuania for 2023.