In 2024, Lithuania’s startup ecosystem, a unique blend of innovation and resilience, surpassed a valuation of €16 billion — achieving 39x growth over the last decade — despite the investment decline across Europe. This data, from the latest Startup Lithuania and Dealroom report exclusively shared with TFN, positions the country as the second-fastest-growing startup ecosystem in Central and Eastern Europe, trailing only Estonia.Tech Funding News explored this Baltics’ emerging industry, attended TechFusion Awards 2024 (just last Thursday), and interviewed key players shaping the landscape — NordSecurity and Revolut — along with accelerators and incubators Tesonet and Invest Lithuania. Here’s what we found out.
Investment trends show market resilience
Lithuanian startups attracted €128 million in investments in 2024. Though funding declined due to slower late-stage investments, early-stage activity remained robust, showcasing various sectors. These patterns mirror trends across Central and Eastern Europe compared to the record-breaking year of 2021.Vytautas Sabalys, Investment Manager at Tesonet, commented: “Some local funds in Lithuania and the Baltics do invest in Series A rounds, but there is not as much funding available for late-seed or Series A stages. This means startups often need to look for funding from investors outside the local market, which is seen as an opportunity rather than a challenge.”
Karolina Urbonaitė, Head of Startup Lithuania, told TFN: “While 2023 saw very large funding rounds exceeding €100M, 2024 had smaller rounds averaging €10–20M.” The year’s largest investment went to Lithuanian startup Ovoko, raising €20M for e-commerce solutions in used car parts. Argyle followed with €13.6M in Series C for real-time income and employment data, while Cube3 secured €13M in Early VC for real-time crypto fraud prevention.
Lithuania’s first Vinted unicorn reached a €5B valuation after a €340M secondary exit in October 2024, marking its halfway point to decacorn status. This achievement is a beacon of inspiration, reflecting the country’s promising startup landscape. Early-stage VC investment hit €108M in 2024, achieving the second-best result on record. Notable investments included Biomatter (€6.5M), Bourgeois Boheme (€6.5M), and Fideum (€3.2M).
Vilnius vs Kaunas: Two hubs of the innovation
Two cities lead Lithuania’s diverse and dynamic startup landscape: Vilnius and Kaunas. With over 1,050 startups and €123M in VC investment in 2024, Vilnius excels in fintech, transportation, and security sectors. Its emerging industries include enterprise software, fintech, and fashion. “Vilnius continues solidifying its reputation as a dynamic and rapidly growing innovation hub. The city is celebrated for its unicorn successes, thriving startup ecosystem, and leadership in business-friendliness and the sharing economy,” said Dovilė Aleksandravičienė, CEO of Vilnius TechFusion, powered by Go Vilnius.Similarly, Kaunas has emerged as a strong second hub, hosting over 180 startups with €4.3M in VC investment in 2024, specialising in food, health, and hosting. The city excels in gaming (Eneba and TutoTOONS) and transportation (Obdeleven and Shipzee). Plus, internationally recognised startups like PVcase and Hostinger enhance their reputation while new medical technology centres are established. Since 2019, Kaunas’s ecosystem value has grown 11x.“Kaunas is rapidly emerging as a vibrant startup hub in Lithuania. Over the past few years, the community has become more active, with regular events like Kaunas IN’s Startup Social Kaunas inspiring and connecting entrepreneurs,” noted Tadas Stankevičius, CEO of Kaunas IN.
Fintech and security continue to lead the way
Vilnius has established itself as a hub for fintech and cybersecurity innovation. Vytautas Danta, Revolut’s Deputy CEO, told us, “The fintech industry is highly competitive, with countries competing to attract fintech companies. Lithuania has successfully attracted fintech companies like Revolut, but maintaining that position will require continued efforts to develop the talent pool and regulatory environment.”In 2024’s VC investments, fintech led with €48.8M, followed by marketplace and eCommerce (€29.7M), transportation (€23.2M), security (€20.5M), and enterprise software (€19.2M). While security isn’t among the top three industries, it has gained significant recognition. According to Dealroom data, Lithuania ranked second in 2024 and third since 2019 for Security VC investment among CEE countries, housing major cybersecurity startups like Nord Security, NRD Cyber Security, and Surfshark.Urbonaitė shared: “Lithuania’s capital city, Vilnius, was recognised as the #1 city in the European Union for the cybersecurity industry. This is a significant achievement for Lithuania, given the country’s strength in the cybersecurity sector.”In a conversation with TFN, Marijus Briedis, NordVPN’s CTO, added: “Due to individuals’ constant online presence, cybersecurity is a mandatory focus, not just a trend. I believe it is a big market that will continue to grow. Plus, the strong sectors in biotech and lasers further complement the cybersecurity focus.”
AI and green tech shape the industry’s innovation
Lithuania is making significant investments in artificial intelligence (€38.8M), circular economy (€20M), payments (€15.6M), deep tech (€15.2M), and crypto and DeFi (€13.8M). Briedis noted: “Lithuania is a bit behind in adopting emerging technologies like AI and ML, but I believe the country will catch up.”Sabalys added: “AI will become ubiquitous in the coming years, similar to how the internet is now just a basic part of everyday life. Lithuania and the Baltics are expected to be fast adopters and adapters of AI technology, which will help the region produce several unicorn companies in the next few years.”Kristina Balčėtė, Head of the Technology Sector Team at Invest Lithuania, explained: “Lithuania is preparing for upcoming EU regulations on AI by creating a sandbox environment where local and foreign companies can develop AI solutions with expert guidance. This aims to ensure compliance and foster AI innovation in the country.”She added: “As part of the transition to a more sustainable, circular economy, Lithuania will likely see increased investment and activity in areas like renewable energy, waste management, and the development of circular business models.”
Vinted and Nord Security mafia: companies founded by former employees
In Vilnius, the startup ecosystem is increasingly interconnected. The offices of Vinted and Nord Security — Lithuania’s two largest unicorns — are located just 200 meters apart. Innovation is flourishing, with new startups emerging from these well-established companies. Briedis noted that at least twenty to thirty companies emerged from Vinted and Nord Security combined. Not universities, but unicorns are shaping tomorrow’s entrepreneurs — learning comes from real, first-hand experience.
This trend aligns with the combined enterprise value of Lithuanian startups. The Dealroom report shows that 48% of Lithuania’s tech value comes from breakout global unicorns Vinted and Nord Security. However, excluding these two, Lithuanian startups have grown 31x in the last 10 years, well above the European benchmark of 9x.
2025 outlook: Scaling up with late-stage funding and tech innovation
While it’s too early to make definitive predictions, experts forecast developments around mature funding, emerging tech sectors, and continued government support. Karolina Urbonaitė stated: “In 2025, Lithuania will see more later-stage funding (Series B and beyond) for its startups, compared to the earlier-stage (seed, Series A) rounds that dominated in 2024. Lithuania’s strengths in cybersecurity and MedTech are areas of focus and growth.”Kristina Balčėtė commented: “The combination of AI development support and circular economy initiatives is expected to strengthen Lithuania’s startup ecosystem further, potentially leading to the emergence of more tech and cleantech unicorns.”Vytautas Sabalys concluded: “Lithuania is poised to produce several unicorn companies in the next few years, driven by the rapid adoption of AI and the supportive startup ecosystem.”Looking ahead, Lithuania’s tech sector is positioned for growth through AI innovation, the emergence of new unicorns, a robust startup ecosystem, and companies with global reach. While gender diversity data in tech remains limited, early figures are encouraging — fintech companies report 45% women representation on average, and the industry continues to monitor progress in this key area.
