In the dynamic landscape of Lithuanian start-ups, the second quarter of this year has showcased remarkable growth in both salaries and tax contribution. According to insights provided by the Unicorns Lithuania association, these start-ups collectively paid €93.8 million in taxes during the quarter, marking a significant 15% increase from the previous quarter and an impressive year-on-year growth of 25%.
An encouraging trend is also evident in the escalating salaries offered by these start-ups. The average salary within the Lithuanian start-up sector has now reached €3,800 before tax, showcasing a remarkable year-on-year rise of 15%, equivalent to an increase of €500. The start-up ecosystem currently employs a substantial workforce of 17,500 individuals, demonstrating a notable 5% growth equating to nearly 1,000 new positions annually.
“The Lithuanian start-up market is steadily progressing towards maturity. Despite global market fluctuations, our country’s start-up ecosystem continues to generate increased value, profits, personal income, and more, resulting in higher tax contribution every quarter. While global IT giants draw substantial revenues from abroad, they are consistently generating employment opportunities and contributing significantly higher tax revenue within Lithuania,“ affirms Inga Langaitė, Head of the Association.
Top 5 Lithuanian start-ups making significant tax contribution (Q2 2023)
- Vinted – €6.55 million
- Wargaming – €6.30 million
- Nord Security – €5.24 million
- Kilo Health – €3.84 million
- Oxylabs – €3.63 million
Notably, the top three contributors also lead in terms of employment: Vinted (1,326 employees), Nord Security (1,185 employees), and Wargaming (1,007 employees). Additionally, seven other start-ups surpassed the €1 million tax threshold in Q2 2023: Gurtam, Hostinger, Flo, Planas chuliganas, Surfshark, Mambu, and Bored Panda.
“The startup sector is currently seeking to fill numerous positions, with the highest demand observed for front-end, back-end, and full-stack developers, QA specialists, data engineers, and marketing experts. Around 350 startups offer an average salary higher than Lithuania’s national average (Q1 2023 data – €1,959.9), and the maximum salary highlighted in public job listings exceeds €8,000,” emphasizes Langaitė.
Top 5 start-ups offering the highest salaries (Q2 2023, pre-tax):
- Oberlo – €15.8 thousand (+144% compared to Q1 2023)
- Game Insight – €9.2 thousand (-24% compared to Q1 2023)
- Planner 5D – €7.6 thousand (+3% compared to Q1 2023)
- Tesonet Accelerator – €7.3 thousand (-4% compared to Q1 2023)
- Cast AI – €6.8 thousand (-1% compared to Q1 2023)
With over 870 active start-ups in Lithuania, the landscape is diverse. Approximately 25% are in Business Software, 14% in FinTech, and 10% in HealthTech, Life Sciences & Wellness. Around two-thirds of start-ups follow a business-to-business (B2B) model, one-third a business-to-customer (B2C) model and up to 5% offer products or services to the public sector (B2G).
