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Lithuanian business angels conducted more investment deals in 2023

Lithuanian business angels conducted more investment deals in 2023

Members of LitBAN, an association comprising over 350 Lithuanian business angels, made 375 investments in startups this year, marking a one-third increase compared to 2022. The average amount invested by a business angel this year – around EUR 28,000 – aligns with the European average. Moreover, Lithuanian angels are planning to increase their investment volumes next year.

According to a survey of its members, LitBAN’s members invested a total of EUR 10.5 million this year. 70% of this amount was invested in Lithuanian startups, a significant rise from 57% in 2022. Although the total amount invested by Lithuanian business angels this year was 27% lower year-on-year, it was slightly higher than in 2021.

Roberta Rudokienė, the managing director of LitBAN, stated that the decrease in the total amount invested by business angels reflects the global anxiety and economic instability experienced this year. Similar declines in investment have been observed in the US and other markets. However, Lithuanian business angels engaged in more deals this year, and two-thirds of them plan to increase their investment volumes in 2024.

“Despite the economic environment, awareness of business angels’ investing activities has been growing in Lithuania. Business angels worldwide often serve as the crucial initial link between an idea and actual business implementation. The expanding network and activity of such individuals in Lithuania are laying the groundwork for new success stories among Lithuanian startups,” said Rudokienė.

She mentioned that LitBAN’s network of business angels, which has expanded by several hundred members in recent years, consists mainly of representatives from various business sectors who have amassed capital, experience, connections, and, most importantly, the willingness to share their knowledge with young entrepreneurs. The LitBAN network currently comprises around 350 angel investors.

Vladas Lašas, Chairman of the Board of LitBAN, highlighted that in terms of the ratio of business angel investment to a country’s GDP, Europe is led by Estonia, Finland, and Lithuania.

“Innovative tech startups thrive in places where they receive support from business angels from the outset. Lithuania is already among such countries. I am pleased to see the growth of the business angel network in Lithuania, along with the increased maturity and activity of its members,” stated V. Lašas.

V. Lašas. Photo of Delfi / Andriaus Ufarto

This year, LitBAN’s business angels invested primarily in startups operating in financial and business services, artificial intelligence, dual-purpose and defense, life sciences, industrial technology, and energy sectors. Noteworthy investments by business angels this year were made in companies such as the artificial intelligence platform GenusAI, video solutions developer Perfection42, reputation management tool Repsense, step challenge provider Walk15, pet care app Boop, custom manufacturing solutions provider ColibrisODM, and business data specialist Okredo. Lithuanian business angels participated in these investments both individually and alongside venture capital funds. Throughout the year, the association’s members also made 13 profitable exits.

LitBAN’s angels have previously funded startups such as the content subscription platform Contribee, cardiac echoscopy software developer Ligence, the Interactio interpretation platform, and many others.