STARTUP ECOSYSTEM

Lithuania Funding volume

Funding volume: Lithuania’s venture capital landscape in 2023

Lithuania’s venture capital ecosystem continues to establish itself as a driving force in the Central and Eastern European (CEE) region, attracting substantial investments despite global economic challenges. The year 2023 saw an impressive array of funding activities, further highlighting the country’s ability to nurture and attract high-growth startups.

Total venture capital investment: a strong presence in the CEE region

Lithuanian startups raised a total of €292 million in venture capital during 2023. The country is a key player in the CEE region, thanks to its innovative startups and a maturing investment ecosystem. In fact, it ranks 2nd among CEE for 2023 VC investment, and 2nd for VC investment per capita. Enterprise Software, Security and Energy are Lithuaniaʼs most funded industries.

With 890+ startups and €12.4B in combined ecosystem value, Vilnius alone accounts for 91% of the combined enterprise value of Lithuanian startups. Key sectors are Fintech, ICT, GameDev, Biotech and Laser tech.

Source: Dealroom, Startup Lithuania, Practica Capital, Triniti, Vilnius TechFusion: The Lithuanian startup ecosystem 2023, February 2024.

Two significant deals dominated the funding landscape in 2023:

  • Nord Security: raised €100 million, reinforcing its position as a global leader in cybersecurity solutions. Nord Security was founded in Lithuania in 2012 by co-founders and co-CEOs Tom Okman and Eimantas Sabaliauskas. Their mission was to create internet security and privacy tools that are easily accessible to everyone. Today, Nord Security’s suite of products is trusted by millions of consumers worldwide and a range of businesses. Nord Security operates in more than 20 markets and employs around 2,000 professionals globally.
  • PVcase: secured another €100 million, bringing the company’s total funding to over $123 million and showcasing Lithuania’s strengths in renewable energy and green tech innovation. Highland Europe, Energize and existing investor Elephant all participated in the round. The company has operated almost exclusively from its revenue stream while expanding into 75 countries. This enabled it to build earlier investments into a significant cash reserve to use in upcoming acquisitions.

These headline-grabbing rounds not only highlight Lithuania’s ability to produce high-value startups but also underscore its appeal to international investors.

Average investment size: opportunities across the spectrum

The average venture capital deal size in 2023 was approximately €10 million, reflecting a balanced mix of early-stage investments and larger, growth-stage funding rounds.

Investment ranges and highlights:

  • Major deals:
    • Nord Security and PVcase led the charts, each securing €100 million (approximately $108 million), emphasising the scalability of Lithuania’s top startups.
  • Notable rounds:
    • CAST AI: although the cloud computing optimisation platform was founded in Lithuania only 5 years ago, having discovered its recipe for success the company has been growing at an impressive rate – in 2023, it raised €55 million in funding, made its team 200-strong, and is generating value for hundreds of companies globally. The Lithuania-based company’s services are now being used by hundreds of organisations globally – from e-commerce and fast-growing fintech startups to Fortune 500 giants. In late 2023, CAST AI was itself recognised as one of the fastest-growing tech companies in the world.
    • Sentante: the company announces the closing of a €6 million seed funding round led by Practica Capital with participation of EIC fund. The company will use the proceeds from the financing for the planned clinical trial of the Sentante robotic system and preparation of commercial launch in targeted international markets.
    • GenusAI, TN-based provider of a generative AI platform for D2C and e-commerce brands, secured €6 million in additional investment. This extension brings the total seed funding for the company to $11 million. The seed round extension includes investments from new investors: Aleph Group Inc., an ecosystem of global digital experts and technology-driven solutions for digital marketing and strategic angel investors. The funds raised through this extension of the seed round will be used to invest in the company’s go-to-market (GTM) infrastructure. Genus AI also plans to incorporate additional integrations and features into its platform to further enhance its offerings for D2C and e-commerce brands.

These figures demonstrate that while mega-rounds attract attention, Lithuania also supports small to medium-sized investments, fostering diversity within its startup ecosystem.

Lithuania’s funding ecosystem: strengths and outlook

Lithuania’s ability to attract substantial investments stems from several factors:

  • A supportive startup ecosystem, backed by organisations like Startup Lithuania and Invest Lithuania, which provide resources for entrepreneurs to scale their businesses.
  • Strategic focus on high-growth sectors such as cybersecurity, AI, and green technology, aligning with global trends.
  • A growing pool of local and international venture capitalists, eager to tap into the country’s talent and innovation.

The consistent flow of capital, coupled with Lithuania’s robust tech and education foundations, positions it as a rising star in the global startup scene.

Explore more about Lithuania’s startup ecosystem