Lithuania’s startup ecosystem is thriving, with nearly a thousand startups currently operating in the country. According to recent data, there are 963 active startups in Lithuania, marking a 13% increase over the past year. These startups are primarily focused on business software, financial technologies, and wellness.
Business Models and Market Segments
Approximately 70% of Lithuanian startups follow a business-to-business (B2B) model, while a third operate on a business-to-consumer (B2C) basis. Additionally, up to 5% of these startups provide products or services to the public sector (B2G). Some startups diversify their operations across multiple segments simultaneously.
Top 5 Industries for Lithuanian Startups
1. Business Software (25%): This sector leads the way, with a quarter of all startups focusing on developing software solutions for businesses.
2. Financial Technologies (FinTech) (15%): FinTech remains a significant player, with startups innovating in financial services and technology.
3. HealthTech, Life Sciences & Wellness (10%): The health and wellness sector is growing, driven by innovations in health technologies and life sciences.
4. Advanced Manufacturing & Industry (7%): This industry is making strides with startups dedicated to manufacturing and industrial advancements.
5. AdTech & Creative Tech (6.5%): Advertising and creative technologies continue to attract a considerable number of startups.
Emerging Trends and Future Prospects
While the list of dominant industries has remained stable over the past year, there’s a notable increase in startups entering the artificial intelligence (AI) field. Data from Crunchbase indicates that in the first quarter of 2024, global venture capital funding for AI-related startups increased by 4% to $12.2 billion compared to the fourth quarter of 2023.
Lithuanian startups are making significant strides in this area as well. In June, the AI technology startup Spike, founded by Lithuanians, secured $3.5 million in early-stage investment. Another AI-driven startup, Pixevia, raised €1.5 million in May to develop AI-managed stores.
Rūta Pukenė, acting director of the startup association “Unicorns Lithuania,” highlights the potential for breakthroughs in green innovations and biotechnology. She emphasizes the enduring relevance of financial and health technologies and the expanding e-commerce sector. Pukenė notes that Europe is increasing its defense technology capabilities in response to the current geopolitical situation, offering numerous opportunities for high-value business creation.
Karolina Urbonaitė, head of the Innovation Agency Startup Lithuania, adds that the life sciences and wellness sector hold significant strategic importance for Lithuania. She points out clear signs of growth in this industry and predicts an increase in wellness technology innovations. Vilnius and Kaunas have already been recognized as top cities in the EU for medical technologies, further demonstrating Lithuania’s leadership in this sector.
Contribution to the National Economy
In the first quarter of 2024, Lithuanian startups contributed €91.5 million in taxes to the national budget. Today, 18,000 talented individuals are employed by these startups. The Lithuanian startup database, a collaborative initiative by Startup Lithuania and Unicorns Lithuania, is open to the public and updated in real-time.
Lithuania’s startup ecosystem is dynamic and growing, with significant contributions to various industries. The future looks promising, with continued innovation and expansion expected across multiple sectors, particularly in AI, green innovations, and life sciences. As Lithuania solidifies its position as a hub for startup activity, the message to aspiring entrepreneurs is clear: pursue your passion, embrace innovation, and create real value through technology.
