STARTUP ECOSYSTEM

Lithuania Startup density

Lithuania’s thriving startup ecosystem

Lithuania’s startup ecosystem is rapidly growing, positioning itself as a major player in the Baltic region and Central and Eastern Europe (CEE). The country’s dynamic business environment, coupled with robust support for innovation, has led to significant growth in the number of startups and the overall ecosystem value. This section provides insights into Lithuania’s global and regional startup rankings, the total number of startups, and the valuation of the ecosystem, showcasing why it is an attractive destination for entrepreneurs and investors alike.

Global startup ecosystem ranking: Lithuania’s rising influence

In 2023, Lithuania was recognised as the fastest-growing startup ecosystem in the Baltic region, reflecting its rapidly expanding entrepreneurial sector. The country ranks 6th among Central and Eastern European (CEE) countries for Venture Capital (VC) investment in 2022. Additionally, Lithuania ranks 3rd for VC investment per capita, further underscoring its appeal to investors.

These rankings reflect Lithuania’s growing reputation as a hotspot for innovation and investment, particularly in sectors such as fintech, enterprise software, and cybersecurity. The combination of a business-friendly environment, a robust talent pool, and access to international markets has created a thriving startup landscape that attracts both local and international capital.

Regional ranking reports: growth and value in the CEE region

Lithuania has shown impressive growth in its startup ecosystem, increasing its total ecosystem value by 7.1x between 2018 and 2023. This surge in value highlights the country’s ability to foster innovation and attract investment, solidifying its position as a key player in the CEE region.

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

The capital city of Vilnius is the main driver of this growth, contributing a significant 91% of the total startup ecosystem value. Vilnius serves as the central hub for startups in Lithuania, offering a wealth of resources, infrastructure, and networking opportunities. The city’s concentration of high-tech industries and access to skilled talent further contributes to its dominant position within the broader ecosystem.

Total number of startups and ecosystem value: a booming landscape

As of 2023, Lithuania is home to over 890 startups, representing a diverse range of industries such as fintech, enterprise software, security, and digital technologies. This growing number reflects Lithuania’s vibrant entrepreneurial spirit and the increasing number of innovators turning to the country to launch and scale their businesses.

The graduation rate of Lithuanian startups maintains a level consistent with the region’s performance at an early stage. At breakout and late stage, it surpasses the rates of Baltic countries, the Baltic and CEE regions.

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

The combined value of Lithuania’s startup ecosystem reached €13.7 billion in 2023, reflecting the rapid growth of the country’s startup sector over the past five years. This significant valuation highlights Lithuania’s growing importance in the global startup landscape and its capacity to foster high-growth industries.

The growth of the ecosystem is driven by key sectors such as fintech, enterprise software, and cybersecurity. These sectors continue to dominate the startup scene, attracting both local and international investors and entrepreneurs. With a strong regulatory framework, access to funding, and a thriving innovation ecosystem, Lithuania continues to solidify its position as a top destination for startups.

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

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