Eastern Europe’s success story continues to grow
The ranking “Sifted 30: Eastern Europe and the Baltics” published by Sifted, shines a spotlight on the fastest-growing startups in Eastern Europe and the Baltics. Out of 17 countries considered, only six managed to break through, showing that while the region is changing, only a few cities are really in the tech spotlight.
Estonia is the clear leader, grabbing nearly half of the spots on the list. The country’s rise is often linked to the “Skype effect”—that early internet calling breakthrough that sparked a wave of innovation. With initiatives like e-residency and online voting, Estonia has cut through red tape and attracted entrepreneurs from all over, helping it produce unicorns like Wise, Bolt, and others.
Latvia, on the other hand, struggles to catch up. Despite some standout funding rounds, the country’s tech scene faces challenges, partly due to its post-Soviet legacy and a smaller pool of venture capital. Bulgaria also finds it tough, especially for deep tech companies, where traditional IT deals get most of the funding, while innovative ideas like insect-based protein ventures have a harder time getting off the ground.
Across the border, Romania is benefiting from its own tech success story—UiPath. That early win has helped transform its startup ecosystem into a more diverse and vibrant community, with several new players making significant deals. Meanwhile, Lithuania, with its cheeky self-branding and rising success stories like Vinted, shows great promise, even as it works to attract global talent.
In short, Eastern Europe’s tech landscape is a tale of two extremes: a few hubs thriving and inspiring new ventures, while others still battle old challenges. Yet, as these early successes create a ripple effect, the entire region seems poised for more breakthrough moments.
Source: https://sifted.eu/articles/eastern-europe-baltic-startup-rank
