The Startup Ecosystem of Lithuania

Lithuania has achieved inspiring milestones considering it has a relatively low population. The country has not only shown its unique voice in its foreign policy, but also managed to build a successful startup ecosystem. The relatively low cost of living in Lithuania and its skilled software developers give a positive boost to the national ecosystem. Fintech is a core industry focus in Lithuania, where constant innovation and the government’s easing of regulation, including a blockchain sandbox, is attracting major international players. One example is the UK-based fintech startup Revolut, which launched a licensed bank in Lithuania in 2020.
Lithuania’s fintech efforts also seem to be paying off, as a fintech report by our partners at Findexable ranked Lithuania 10th globally in 2021. Furthermore, according to Invest Lithuania,the Fintech headcount grew by 19% year-over-year in 2022, reaching 7,000 employees. But fintech is not the only sector providing good news. One booming sector with an international reach in Lithuania is life sciences — it’s the fastest growing in the EU with steady annual growth.

In 2022, Lithuania’s booming startup scene welcomed its second unicorn: Nord Security. This Vilnius-based cybersecurity firm raised US$ 100 million at a valuation of US$ 1.6 billion, making it Lithuania’s second tech unicorn after Vinted, and opening promising new development opportunities for Lithuania. The maturity of local startup ecosystems is reflected in the ways the community is self-organizing. In addition to numerous gatherings and events, Lithuania’s startup sector now has its own association – Unicorns LT, which seeks to accelerate ecosystem growth even further.

Fortunately for Lithuania, the public sector is extremely active in ecosystem promotion and development. With friendly business regulations, government support for funding, and an open data policy, Lithuania’s public sector has created an environment that nurtures startups. Startup Lithuania, the country’s one-stop shop for startups, is promoting a Startup visa catering to foreign entrepreneurs and allowing a temporary residence permit for up to a year. In addition, Lithuania boasts the Startup Employee Visa, an initiative that sets out to attract highly skilled workers. Other important startup ecosystem stakeholders are Go Vilnius, an organization that attracts innovation to its ecosystem, and The Kaunas University of Technology, which fosters and trains talent.

With more incentives for entrepreneurs and investors, it’s safe to say Lithuania’s startup ecosystem has much more potential for growth.