Despite global economic challenges, Lithuania's startup ecosystem demonstrated resilience and growth. By 2023, the country had over 800 active startups, employing more than 16,000 people and startups raised a total of €272 million. Notably, the average investment per startup grew to €10 million, highlighting a focus on larger deals and sustainable growth. The tech ecosystem saw significant investments in sectors such as cybersecurity, energy, and biotech, with standout companies like Nord Security and PVcase, each securing $100 million in funding.
Although the overall amount decreased, Lithuania remained one of the few European countries to experience an increase in investments by September 2023, alongside Romania and Luxembourg. The ecosystem continues to expand, supported by initiatives from venture capital and tech hubs, such as Rockit, aimed at nurturing early-stage startups. This focus on profitability and innovation signals a promising future for Lithuania’s entrepreneurial landscape.
We are happy to share our partner’s FIRSTPICK insights about Lithuanian startup ecosystem and we welcome you to a quick interview with Marijus Andrijauskas, Partner at FIRSTPICK.
Marijus, how do you see the evolution of Lithuania’s startup ecosystem in the next 3 to 5 years? Do you think the gap between startups in Vilnius and other regions will change?
Lithuania’s startup ecosystem has grown rapidly in recent years and continues to head in the right direction. Over the next 3 to 5 years, we can expect even more collaboration between startups, venture funds, accelerators, hubs, associations, and business angel networks. The growing involvement of institutional players is also creating a strong foundation for future growth. With improved access to capital, mentoring, and talent, Lithuania is becoming an increasingly attractive destination for innovation.
While Vilnius remains the startup epicenter due to its concentration of resources and talent, other cities like Kaunas and Klaipėda are gaining momentum. Kaunas benefits from its technical universities, and Klaipėda is becoming a promising tech hub, attracting founders and entrepreneurs. Interestingly, coastal cities like Palanga and Nida are turning into seasonal startup hubs during the summer, offering a great quality of life and attracting innovators.
Smaller cities still need to build unique offerings through university partnerships or specialized infrastructure, but government programs are already helping to support regional development. Initiatives from ecosystem players like Rockit are essential in spreading resources and leveling the playing field for startups across the country.
What strengths set Lithuania’s startup ecosystem apart, and how does VC and communities like ROCKIT support this growth?
To avoid gaps like those seen in Estonia, it’s crucial to focus on nurturing early-stage startups now. Encouraging and enabling wanna-be founders to make their first attempts, without fear of failure, will help maintain a healthy pipeline of new ventures. Despite economic challenges that may deter senior professionals, investing in early-stage development is vital.
Hubs like Rockit are playing an invaluable role in addressing these needs. They are not only focused on Vilnius but are also extending their reach to regional areas, ensuring that this culture of innovation and entrepreneurship can spread throughout the country. By bringing together the resources and networks necessary to support budding entrepreneurs, Rockit is helping to cultivate a new generation of startups that will continue to fuel Lithuania’s growth.
As you mentioned, ROCKIT's Pre-Acceleration Program focuses on early-stage startups. What are the key factors that help these programs prepare startups for investment?
As a VC, we screen hundreds of startups, and typically only around 2% are ready for investment. Many promising teams fall short, not because their ideas are weak, but due to gaps in preparation, validation, understanding of numbers, and familiarity with the VC landscape. This is where pre-acceleration programs, like ROCKIT’s, play a crucial role.
These programs equip startups with the knowledge and tools they need to bridge these gaps. ROCKIT’s Pre-Acceleration Program is a great example, offering structure and guidance for early-stage founders who aim to pursue VC funding later. Not only does it increase their chances of securing investment, but it also helps founders evaluate whether entrepreneurship is the right path for them.
Marijus, in your opinion, what sectors within the Lithuanian startup ecosystem are currently underserved or have the most untapped potential, and how can accelerators or public initiatives address this?
One sector with untapped potential in Lithuania is AI. While we’ve seen some movement and ideas developing, much of it revolves around generative AI, and we’re still catching up with the broader AI wave. However, this is the right direction, and I believe AI will soon become a powerful sector in our ecosystem. To fully unlock this potential, accelerators and public initiatives need to focus on enabling and supporting AI innovation. By concentrating our efforts, we can foster a stronger AI presence in Lithuania, ensuring the sector flourishes in the coming years.
Thank you Marijus for such and insightful interview! A pleasure to have you as our partner and mentor in our acceleration programs!
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