While business financing opportunities are quite abundant at present, the lack of funding for the development of innovative business is one of the main issues for startups worldwide, including Lithuania. In order to provide assistance in finding financing opportunities and all required information on financing, Startup Lithuania has developed a Funding Guide, an interactive platform that helps developers of innovative businesses to find suitable fundraising opportunities.
“According to the results of a representative survey of Lithuanian startups conducted by Startup Lithuania at the end of 2020, as much as 39% of startups experience lack of funding, which makes the development of their business difficult. In the course of consulting that we provide, the most frequently asked questions are related to business financing. Those who develop innovative business for the first time lack knowledge about attracting investments, venture capital fund expectations, or the most suitable methods of attracting funds depending on the business development stage. Therefore, we have created a financing guide that will help startups to discover suitable financing opportunities and provide relevant information. We hope that this platform will contribute to even more rapid growth of startups and move their innovative businesses to a higher level,” says Roberta Rudokienė, Head of Startup Lithuania, a startup ecosystem development unit of Public Institution Enterprise Lithuania.
Startups will be able to identify, using the interactive virtual platform, which financing opportunities they can make use of depending on the business development phase, and to find available offers or facilities. Founders will have an opportunity to regularly check what financing opportunities are offered to them by accelerators, business angels, and participants in venture capital funds, to find state aid and offers, and other fundraising opportunities published by participants in the startup ecosystem. The platform is available on www.startuplithuania.com/funding-guide.
Gytenis Galkis, a partner of 70V acceleration fund, also sees the need for such tools and believes that Funding Guide will create a significant value for startups by helping them to orientate themselves on a road that is not always clear.
“Together with all the 70V team, we are very happy to see Startup Lithuania‘s initiative to create an interactive guide for the financing of startups. More and more people are interested in establishing their own business and have great ideas and insights, whereas the Government of Lithuania assists them by rapidly improving the business development environment and creating excellent financing opportunities for those who develop business in Lithuania. We know, however, that is very easy to get lost among various facilities and organisations providing support, loans, and other assistance, therefore, having everything on a single interactive website is very convenient,” points out Gytenis Galkis.
Rokas Pečiulaitis, Contrarian Ventures’ executive partner, is of the same opinion – he says that Funding Guide will make the startups‘ business development journey easier as many of them encounter difficulties in raising funds.
“It is a great initiative launched by Startup Lithuania, and I believe that it will be highly relevant to the startups in their early phase. Of course, one can find lots of information about financing online, however, finding the required information is very time-consuming, therefore, such tools as a financing guide will be an excellent aid for young businesses. We see the difficulties that startups encounter, and it is clear that they need help,” alleges Rokas Pečiulaitis.
About the Lithuanian startup ecosystem:
Startup Lithuania estimates that there are over 1,080 startups in Lithuania. During the first 6 months of 2021, innovative businesses attracted over EUR 310 million investments from domestic and foreign investors. According to information published on Unicorns.lt, in the said period Lithuanian startups – legal entities paid EUR 87.6 million in taxes, and the average pay in such entities was EUR 2,700.