Lithuania’s startup ecosystem triples in size

The number of startups in Lithuania has grown to 1,021, according to a press release by the government agency Startup Lithuania.

“A couple of years ago, the Economy Ministry set a very ambitious goal – to have 1,000 startups in Lithuania,” Economy Vice Minister Marius Skuodis said in the press release.

“At that time, only around 380 startups were registered in Lithuania’s startup database. Today, Lithuania has something to be proud of – the number of our well-known startups has exceeded 1,000 and we have the first unicorn,” he said.

The growth has been driven by “accelerators or venture capital funds and initiatives to improve the business environment approved by the government, such as more attractive option taxation,” Roberta Rudokienė, the head of Startup Lithuania, is quoted in the press release.

According to the 2013–2019 analysis by Dealroom.co, foreign and local investors have already invested more than 503 million euros in Lithuanian startups.

Meanwhile the average salary in startups reached 2,400 euros and Lithuanian startups paid 87 million euros in taxes in 2019, according to unicorns.lt.

Lithuania is now fourth among Eastern European countries in terms of total amount of investments, according to Rudokienė. The country also hosts the biggest number of startups among the Baltic states, exceeding Estonia’s 1,017 and Latvia’s 352.

The country’s startup scene is dominated by startups of business management systems (16%), financial technologies (13%) and health (8%), as well as logistics or mobility (6%) and game industry companies (5%).

According to the geographical location, more than half of the startups operate in Vilnius (60%), followed by Kaunas (38%) and Klaipėda (2.4%).

In addition, there are 39 startups in the database that are currently developing businesses using the Startup Visa Lithuania programme, established to attract foreign businesses to Lithuania.

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