Lithuania houses over 850 startups and two unicorns, ranking it amongst the top 50 countries for its excellent startup ecosystem.
Due to its promising fast-paced growth, the country is predicted to be the frontline in financial technology (fintech), artificial intelligence (AI), and software development.
If you’re looking to invest in Lithuania, this article will explore the country’s startup potential, fastest-growing sectors, and more.
The prospects of Lithuania’s startup future
Lithuania has experienced a surge of growth year-on-year in the startup and innovation sectors.
The rise of Lithuania’s startup rise is attributed to the competence and expertise of its talent pool as well as its expansive market reach, based on the statement of Lithuania’s Minister of Economy and Innovation, Ausrine Armonaite.
Here are some quick facts about tech development in Lithuania, compiled from the databases of Startup Genome and Dealroom:
- Lithuania holds the second fastest-growing startup ecosystem in Central and Eastern Europe.
- The ecosystem is valued at 5 billion EUR, growing nearly 17-fold in the last five years with an average CEE growth of 4.2x.
- Lithuania ranks 7th in Central and Eastern Europe for venture capital investment.
- Lithuania ranks amongst the top 50 in the world, moving up 20 places compared to last year, for its startup ecosystem globally.
- Startups in Vilnius, Kaunas, Klapeida rank in the 80th, 72nd, and 178th respectively out of 1,000 cities worldwide.
- In 2022, startups in Lithuania raised 295 million EUR despite macroeconomic turbulence – the second-best performing year ever recorded.
- Key startup sectors in Lithuania are fintech, security, information and communications technology (ICT), laser tech, and biotech – with the first two categories receiving the highest funding.
Top startups in Lithuania
Lithuania has its eyes set on building 1000 startups by 2030 and multiplying the number of unicorns.
The company is setting global standards when it comes to tech development. Here are the top 10 startups, scale-ups, and enterprises in Lithuania.
| No | Name | Total Funding and Status | Sector |
| 1 | Vinted | 477 million EUR, Unicorn | eCommerce |
| 2 | Nord Security | 92 million EUR, Unicorn | Digital Security and Privacy |
| 3 | TransferGo | 72 million EUR | Fintech |
| 4 | Kevin | 65 million EUR | Fintech |
| 5 | Getjar | 36 million EUR | App store |
| 6 | Cast | 33.5 million EUR | Cloud computing |
| 7 | Cast | 22 million EUR | Communications technology |
| 8 | PV Case | 124 million EUR | Solar technology |
| 9 | Ovoko | 19 million EUR | Marketplace |
| 10 | Trafi | 14 million EUR | Mobility-as-a-service |
Fastest growing startup sectors in Lithuania
Whether you’re interested in launching a startup or investing in one, here are some of the best industries to consider.
Financial Technology (Fintech)
Lithuania belongs to the top 10 of the Global Fintech Index, leading the industry with the most licensed fintech companies in Europe.
Currently, there are 265 fintech firms in Lithuania, employing over 7,000 people.
Such high-speed growth is supported by the country’s business-friendly regulatory environment – be it for licensing and compliance – as well as a diverse talent pool in software development, customer support, and operations.
Despite macroeconomic challenges, the sector has shown remarkable resilience and is predicted to scale further. The country is on an ambition of becoming the #1 fintech hub in Europe by 2028.
Software Development
The majority of startups in Lithuania (25%) are in the line of business software.
Lithuania owes its software development success to the country’s reliable, high-speed, and low-cost digital infrastructure.
It offers the best 4G internet coverage not only in Europe but also worldwide, the fastest public wifi in the world, and ranks 2nd in Europe for the most extensive fiber optic (FTTP/FTTB) coverage.
Lithuania also has a highly qualified talent pool in the field of software development. The country is known as the number 1 in the world for digital skills availability.
Health Tech and Life Sciences
The health tech industry in Lithuania is where innovation comes to life.
COVID-19 has ignited Lithuania’s curiosity toward medical treatments for various existing and emerging diseases.
Lithuania is on the track of fully digitizing health services and patient data collection. This aspiration is bolstered by the country’s commitment to the life sciences industry, networking between universities and science valleys, as well as the evolving number of biotech-ready talents.
The government also aims to drive 5% of Lithuania’s GDP through life science development by 2030.
Why tap into Lithuania’s market?
The country provides a wealth of advantages for entrepreneurs looking to open a company in Lithuania, such as:
Resilience growth
The startup sector in Lithuania is still standing strong despite numerous challenges brought on by the Ukraine-Russian war, global recession fears, and energy crisis.
The sales revenue of Lithuanian startups, collectively, reached 2.6 billion EUR with 4% growth.
Even the fundraising activity is showing no signs of stopping amidst the macroeconomic slowdown.
Lithuanian and European venture capitalists have been more active than ever in the fundraising scene, making up 36% of the investments toward Lithuanian startups. Another 35% of the investment comes from the United States.
The value of Lithuanian startups has also grown exponentially to 9.5 billion EURO in the past 5 years, placing its entrepreneurial ecosystem as the leader in Central and Eastern Europe.
Even when Silicon Valley giants such as Meta and X cut off thousands of their workforce, Lithuania continues to survive the storm and the number of employed specialists remains stable at 17,300 with a 12% increase.
Flexible business regulation
Lithuania is one of the countries in the world with the most business-friendly regulations.
The country hosts an open platform for non-EU startups, resulting in the relocation of hundreds of non-Lithuanian startups in the last 5 years through the Startup Visa program.
Furthermore, the Lithuanian authorities are continuously improving the conditions for business development in the country, such as by streamlining licensing and taxation processes.
World-class talent pool
Lithuania’s talent pool is arguably one of the most competitive in the world.
Top universities across the country have set their focus on producing the brightest tech talents. They’ve fostered an ecosystem that unifies students, researchers, and businesses through accelerators and incubators for collaboration in company formation.
Lithuanian people are known to be highly intelligent with a ‘can-do’ attitude even when dealing with the most complex tasks. They possess a high sense of ownership and continuously try to deliver beyond expectations.
Conclusion
The future landscape of startups in Lithuania will continue to expand, making the country the perfect destination for locals or foreigners to develop businesses.
The question is, how to start? Keep reading our blog or consult our experts right away to learn about the requirements and fees for company registration in Lithuania.
