Vilnius Startup Hub: Why Lithuania is Attracting International Startups

Vilnius: A Rising Hub for Startups

The increasing prominence of Vilnius, the capital of Lithuania, as a startup destination is driven by a multitude of factors. A supportive regulatory framework for startups, coupled with a historically rich and visually appealing medieval city center, forms a strong foundation.

Furthermore, the presence of over 20 business hubs and accelerators, alongside consistently high rankings in intellectual property creation, contribute to its appeal.

Local Perspectives on Growth

According to recent survey data, Vilnius demonstrates strength across diverse technology sectors. Particular emphasis was placed on areas offering tangible solutions, including cybersecurity, energy and sustainability, fintech, healthcare and medtech, edtech, and silver tech.

Respondents anticipate a shift in working patterns post-pandemic, leading to a return of expatriates drawn by the city’s affordability. More foreign companies are also considering relocation, encouraged by advantageous governmental policies, though concerns exist regarding rapidly increasing rental costs.

External Factors Fueling Expansion

The political climate in neighboring Belarus has resulted in an influx of technology firms, notably including Wargaming, alongside their skilled workforce. This represents a significant boost to Vilnius’s tech landscape.

It is expected that this trend will continue, attracting both innovative startups and experienced tech professionals to the city and country.

Challenges and Future Outlook

While optimism prevails, a key challenge identified by respondents is the limited availability of local funding for companies seeking Series A funding and beyond. Addressing this gap will be crucial for sustained growth.

Survey Participants

• Gerda Sakalauskaitė, Managing Director, The Lithuanian Private Equity and Venture Capital Association
• Lukas Inokaitis, Business Development, NFQ Technologies
• Andrius Milinavicius, Founder, Baltic Sandbox
• Gytenis Galkis, Partner, 70V
• Gabriele Poteliunaite, Associate, Change Ventures
• Rokas Tamošiūnas, Partner, Open Circle Capital
• Donatas Keras, Founding Partner, Practica Capital
• Tomas Martunas, Founding Partner, Iron Wolf Capital
• Alex Gibb, Partner, Katalista Ventures
• Jone Vaituleviciute, Partner, Startup Wise Guys
• Lukas Kaminskis, CEO, Turing College

Gerda Sakalauskaitė, Managing Director, The Lithuanian Private Equity and Venture Capital Association

Regarding the strengths and weaknesses of your tech ecosystem, which industry sectors stand out? What developments are you particularly enthusiastic about?
The startup landscape in Vilnius is largely characterized by companies focused on developing business management solutions – specifically B2B and SaaS platforms – alongside a thriving fintech sector. Vilnius is rapidly establishing itself as a significant European hub for fintech, currently hosting over 200 companies in this field. Additionally, we are witnessing growth in areas like deep tech, life sciences, mobility solutions, and the gaming industry.

Could you highlight some of the most compelling startups based in your city?
Vinted, Lithuania’s first unicorn, is a prominent example – an online marketplace for secondhand fashion that secured €128 million in funding, achieving a valuation exceeding €1 billion in 2019.

Other noteworthy startups include: NordVPN, CGTrader, TransferGo, Trafi, Kilo Health, CityBee, Brolis Semiconductors, PIXEVIA, and Oxipit.

Emerging companies to watch are: PVcase, Droplet Genomics, and ZITICITY.

What characterizes the tech investors in your city? What is the investment environment like, and what are their primary areas of interest?
Local tech investors are increasingly willing to embrace risk and are becoming more prominent on the global stage. Having accumulated a decade of market experience, they are now prepared to invest in innovative concepts and businesses with the potential to reshape global markets. They are particularly interested in addressing complex challenges within environmental science, biotechnology, and deep tech. Furthermore, the local investor community is remarkably active and we are actively promoting diversity, including gender equality, within the venture capital landscape.

How has the shift towards remote work, accelerated by the COVID-19 pandemic, impacted your city? Are people staying, leaving, or are you seeing an influx of new residents?
I believe the COVID-19 pandemic presented more opportunities than challenges for Vilnius. The Vilnius startup ecosystem was not impacted to the same extent as many other European cities during the crisis. The city also gained international recognition for its inventive responses to the pandemic’s difficulties. The initiative to transform Vilnius into a large open-air café, for example, showcased the city’s unique, vibrant, and appealing character, leading us to anticipate an increase in expatriates choosing to live here. This is particularly true for individuals from neighboring Eastern European countries affected by the current political instability in Belarus.

Who are the key individuals driving the startup scene in your city – investors, founders, legal professionals, designers, and others?
Founders:
Justas Janauskas, Milda Mitkutė, Mantas Mikuckas (Vinted)
Henrikas Urbonas, Simona Andrijauskaitė (Interactio)
Dalia Lašaite (CGTrader)
Tomas Okmanas, Eimantas Sabaliauskas (Tesonet)
Tadas Burgaila (Kilo Health)
Daumantas Dvilinskas (TransferGo; featured in Forbes 30 under 30)
Martynas Gudonavičius (Trafi)
Venture Capital Investors:
Rokas Peciulaitis (Contrarian Ventures)
Donatas Keras, Arvydas Bložė (Practica Capital)
Jone Vaituleviciute, Dmitrij Susunov (Startup Wise Guys)
Kasparas Jurgelionis (Iron Wolf Capital)
Gytenis Galkis (70Ventures)
Viktorija Vaitkevičienė (Coinvest)
Legal Counsel:
Rūta Armone (Ellex)
Akvilė Bosaite (COBALT Legal)
Eva Suduiko (COBALT Legal)
Mantas Petkevičius (Sorainen)
Laimonas Skibarka (Sorainen)
Linas Sabaliauskas (TRINITI JUREX)
Andrius Ivanauskas (GLIMSTEDT)

Looking ahead five years, what is your vision for the future of your city’s tech scene?
Vilnius is poised to experience significant growth as a leading tech startup hub in the region. The number of individuals employed by startups will increase substantially. We anticipate the emergence of one or two additional unicorn companies. Furthermore, we expect a continued influx of international talent seeking opportunities within Vilnius’s dynamic startup environment.

Lukas Inokaitis on Vilnius' Tech Landscape – NFQ Technologies

Key sectors within the Lithuanian tech ecosystem, areas of enthusiasm, and existing vulnerabilities are discussed. Strong industries include mobility solutions, financial technology, the energy sector, cybersecurity, and healthcare innovations.

Currently, the ecosystem demonstrates a relative weakness in the fields of artificial intelligence and data science.

Notable Startups in Vilnius

Several startups based in Vilnius have garnered significant attention. These include Vinted, a popular online marketplace, Tesonet, known for its cybersecurity solutions, and Kilo Health, a digital healthcare provider.

Pored Banda and Hostinger also represent prominent examples of successful ventures within the city’s startup community.

Investment Trends and Opportunities

The investment landscape in Vilnius is currently characterized by a prevalence of local funds, often supported by governmental and European Union subsidies.

A key need exists for the attraction of larger, private investment firms, as well as an expansion of the angel investor network.

Impact of Remote Work on Vilnius

Vilnius has experienced consistent growth in population over the past ten years.

This trend is expected to continue, fueled by an influx of international talent relocating to the city from various EU nations and countries in Asia.

Future Outlook for Vilnius' Tech Scene

Looking ahead five years, a projection exists for the emergence of one to two unicorn companies annually.

Vilnius aims to establish itself as a leading hub within the EU for fintech, mobility, and energy technologies.

Andrius Milinavicius, Founder of Baltic Sandbox

Which sectors demonstrate strength within your technological ecosystem? What areas generate the most enthusiasm? Where are the notable deficiencies? The ecosystem excels in areas like sustainability, silver tech, and initiatives supporting women in technology.

Could you highlight some of the most compelling startups located in your city? Companies such as Tesonet (the creators of NordVPN), Vinted, Traffi, and Kilo Health are particularly noteworthy.

What characterizes the tech investment landscape in your city? What are the primary areas of investor focus?

Investment is heavily concentrated in deep tech, Software as a Service (SaaS) solutions, and companies focused on sustainability.

Considering the widespread adoption of remote work following the COVID-19 pandemic, what impact do you foresee on your city’s population? Will residents remain, depart, or will new individuals relocate? A general trend indicates that people will remain in Vilnius. The city offers a remarkably green and dynamic environment, featuring numerous co-working spaces and convenient access to natural areas like forests, parks, and lakes.

Who are the pivotal figures driving the startup community in your city – including investors, founders, legal professionals, and designers?

Key individuals include Rokas Peciulaitis from Contrarian Ventures, Arvydas Bloze of Practica Capital, and Tesonet’s co-founders, Tomas Okmanas and Eimantas Sabaliauskas. Furthermore, Tadas Burgaila of Kilo Health is a significant contributor.

What is your vision for the future of your city’s tech scene over the next five years?

We anticipate at least a fourfold increase in growth. The expansion is expected to be exceptionally rapid.

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Please submit your suggestions through this brief survey, and the aggregated findings will be shared publicly.

Gytenis Galkis, Partner at 70V

Regarding industry strengths, emerging sectors, and areas for improvement within the tech ecosystem, what stands out?

Lithuania has risen to become the fourth-ranked nation globally in fintech, following only the U.S., the U.K., and Singapore. Simultaneously, the country’s life sciences sector is experiencing significant growth and increasing recognition.

Companies operating within Lithuania’s life sciences field demonstrate substantial profitability, with 90% of their production being exported internationally. Despite this success, the market continues to offer considerable untapped potential. In 2019, Lithuania secured the 16th position in Scientific American WORLDVIEW’s international biotechnology ranking, highlighting its innovation in biotechnology.

A McKinsey analysis of B2B startups revealed that Lithuanian ventures generate a greater return on investment per funding dollar compared to those in the U.S. and other European nations. This translates to the highest capital efficiency observed within the region.

Notable Startups in Vilnius

Among the more established companies are Vinted, Tesonet, Kilo Health, Bored Panda, Brolis Semiconductors, and Cujo. Recently, Interactio successfully completed a $31 million Series A funding round – the largest of its kind ever secured by a company based in the Baltics.

Promising emerging companies include Whatagraph, Ondato, ZITICITY, Eneba, Robolabs, CAST AI, Foros, Billo, Biomatter Designs, #walk15, and Boommio.

The Investment Landscape in Vilnius

The tech investment environment has undergone rapid evolution over the past five years. Early-stage businesses can access funding through the Lithuanian Business Angel Network (LitBAN), which comprises over 150 active private investors.

Coinvest Capital collaborates with angel investors, offering advantageous financial leverage. This initiative represents the Lithuanian government’s support for the angel investment ecosystem. Furthermore, two prominent accelerators – 70V (a Revenue Accelerator) and Startup Wise Guys – provide funding during the pre-seed and seed phases.

Local investment funds such as Practica Capital, Iron Wolf Capital, Verslo Angelu Fondas, and Open Circle Capital offer seed and Series A funding. However, the ecosystem currently lacks sufficient local funding for later-stage Series A and subsequent rounds, which are primarily provided by international funds. Due to its size, the local ecosystem doesn’t have a narrowly defined focus, though a significant portion of investment is directed towards B2B/enterprise software.

Impact of Remote Work and Population Trends

Since 2012, Vilnius has experienced consistent population growth, averaging 0.3% annually. The COVID-19 pandemic and political events in Belarus have likely accelerated this growth, particularly within the tech sector.

A notable influx of individuals and companies has occurred from Minsk to Vilnius. For instance, Wargaming relocated a substantial number of employees and their families to Vilnius, even purchasing 76 luxury apartments in the city center. Other Belarusian companies are also making similar moves.

Vilnius is recognized as one of Europe’s greenest capitals, boasting a distinctive medieval old town, making it a particularly appealing place to reside. It is estimated that Lithuania currently faces a shortage of over 10,000 tech professionals, presenting a valuable opportunity for skilled individuals to join the expanding tech community.

Key Individuals Shaping the Vilnius Startup Scene

Vilnius is a closely-knit city, and many individuals have contributed to the flourishing of its ecosystem. Some notable figures include Jean-Baptiste Daguenè, Donatas Keras, Mantas Mikuckas, Tomas Okmanas, Rita Sakus, Vladas Lašas, Viktorija Vaitkevičienė, Tomas Martunas, Dmitrij Sosunov, Evaldas Remeikis, and Evaldas Petraitis, among many others.

Future Outlook for Vilnius’ Tech Scene

I am confident that Vilnius will continue to build upon its unique position in tech entrepreneurship. I anticipate further expansion in the fintech, life sciences, and B2B sectors.

My expectation is that exports generated by Lithuanian startups will at least double over the next five years, potentially leading to the emergence of several new unicorn companies.

Gabriele Poteliunaite, Associate at Change Ventures

Regarding the strengths and weaknesses of the local tech ecosystem, and the sectors generating the most excitement… Vilnius has established a significant presence in the fintech industry, a point many would likely agree upon. Beyond this, several other sectors are demonstrating considerable growth. These include edtech, companies leveraging artificial intelligence, medtech, and energy tech – the list continues to expand. We, as generalist investors, are primarily drawn to founders who exhibit strong drive and passion.

However, a key area for improvement within the ecosystem is the limited availability of entrepreneurial training programs. There's a need for more initiatives designed to inspire individuals, both young and established, to pursue company creation and embrace calculated risks. A general risk aversion currently represents a notable weakness. While large-scale success stories are still developing, companies like Vinted and Tesonet signal a positive shift.

Notable Startups in Vilnius

Identifying the most compelling startups within the city is a challenging task, given the vibrant landscape. Companies such as Interactio, Vinted, and Memby stand out, though a comprehensive list would be extensive.

The Investment Landscape

The tech investment community in Vilnius is characterized by strong collaboration and mutual support among investors and entrepreneurs. However, there’s room for progress in terms of internationalization and diversification within investment teams. It’s crucial to move beyond local perspectives. Furthermore, encouraging founders to adopt a more measured approach to international expansion, prioritizing global thinking from the outset, is essential.

The majority of investors operate as generalists, concentrating their efforts across the three Baltic states. Their primary focus lies on seed investments in software (and some hardware) B2B companies.

The Impact of Remote Work

The transition to remote work spurred by the COVID-19 pandemic has undeniably benefited Vilnius. The trend is definitively towards people staying in the city and others moving in. The pandemic served as a catalyst for expats, including myself, to return and contribute to the burgeoning ecosystem. Rising rental costs suggest sustained demand, and favorable policies are attracting foreign companies to relocate here.

Key Individuals Shaping the Tech Scene

Highlighting the key figures in Vilnius’s startup community – investors, founders, legal professionals, designers, and others – is difficult due to their sheer number. This abundance of talent is a clear indication of the city’s thriving tech environment.

Looking Ahead: Vilnius in Five Years

I anticipate that within five years, Vilnius will emerge as a global frontrunner in both generating and attracting exceptional tech startups, skilled tech professionals, and visionary entrepreneurs. While this may seem ambitious, the region possesses a remarkable authenticity. If we can nurture this quality, significant progress is within reach.

Rokas Tamošiūnas, Partner at Open Circle Capital

Regarding industry strengths, emerging areas, and existing weaknesses within your technological ecosystem, could you elaborate? The Lithuanian tech landscape demonstrates particular strength in the areas of marketplaces, financial technology, and life sciences. A notable diversity of technological applications – encompassing property technology, financial technology, governmental solutions, mobility solutions, and artificial intelligence – is also present.

Areas requiring improvement include the expansion of international reach, enhancement of sales strategies, and refinement of marketing approaches.

Notable Startups in the City

Could you identify some of the most compelling startups currently operating in your city? Several companies stand out, including Vinted, Tesonet, Traffi, Omnisend, Billo, and Whatagraph.

The Investment Landscape

What characterizes the tech investors and the overall investment environment in your city? What are their primary areas of interest?

The investment community includes both generalist firms, such as Practica Capital, and those specializing in deep technology, like Open Circle Capital and Iron Wolf Capital.

Furthermore, investors focused on green technologies and energy solutions, such as Contrarian Ventures, and accelerator programs like 70ventures and Startup Wise Guys, are active.

Investment activity is progressively shifting towards later stages, though early pre-seed and seed funding remain prevalent. While information and communication technology, particularly artificial intelligence, continues to attract significant investment, emerging fields like photonics and the new space sector are gaining traction.

The Impact of Remote Work

How has the transition to remote work, accelerated by the COVID-19 pandemic, affected the population distribution within your city?

A widespread adoption of fully remote work arrangements occurred within the tech community during the pandemic. Currently, a return to office-based work is underway, with many companies adopting a hybrid model.

Remote work practices have proven beneficial in fostering the development of virtual teams, especially those with members located internationally.

Key Individuals in the Startup Ecosystem

Who are the prominent figures driving the startup scene in your city – investors, founders, legal professionals, designers, and others?

Leading startup founders include J. Janauskas of Vinted, T. Okman from Tesonet, and R. Lauris of Omnisend.

Future Outlook

What is your vision for the evolution of your city’s tech scene over the next five years?

A period of increasing diversification is anticipated, with the emergence of numerous specialized microecosystems within the broader tech landscape. This is expected to result in a vibrant and multifaceted tech scene in the coming years.

Donatas Keras, Founding Partner, Practica Capital

What industry sectors is your tech ecosystem strong in? What are you most excited by? What is it weak in?

The Vilnius tech ecosystem is demonstrating increasing maturity, with a growing number of locally founded startups achieving global leadership positions. Key sectors include marketplaces like Vinted, CGTrader, and Ovoko.

Cybersecurity, exemplified by NordVPN, is another strength, alongside fintech companies such as TransferGo, Ondato, and the European headquarters of Revolut.

Furthermore, we excel in gaming with firms like Nordcurrent, Game Insight, and Wargaming, as well as mobility solutions from Trafi and ZITICITY.

Emerging areas like biotechnology (Biomatter Designs, Droplet Genomics), space tech (NanoAvionics), and health tech (Kilo Health, Oxipit) are also showing significant promise.

The rapid growth of startups, a globally-focused mindset, a commitment to innovation, and the resilience of founders define our ecosystem’s strengths. However, increasing competition for local talent represents a current weakness that requires attention at the national level.

Notable Startups in Vilnius

Which are the most interesting startups in your city?

Vinted, Lithuania’s first unicorn, stands out, alongside NordVPN, CGTrader, Interactio, TransferGo, Trafi, Kilo Health, CarVertical, and Omnisend.

Looking ahead, rising stars like Ondato, Ovoko, Biomatter Designs, Droplet Genomics, and ZITICITY deserve recognition.

The Investment Landscape

What are the tech investors like? What is the investment scene like in your city? What’s their focus?

The investment scene mirrors the broader ecosystem’s maturation, with increased activity across all stages. Companies are becoming more investable, and investors are demonstrating greater risk tolerance.

Business angels are exceptionally active, completing over 100 deals annually. A growing number of tech entrepreneurs are now investing in early-stage startups, shifting from a base of “old economy” business leaders.

Government-backed business accelerators and pre-seed funds, such as 70ventures, Startup Wise Guys, and Baltic Sandbox, are playing a vital role in ecosystem development.

Venture capital in Vilnius and Lithuania has a history spanning over a decade, initially spurred by EIF and state funding, and now experiencing strong growth.

Practica Capital is a highly experienced and active VC, having grown alongside the ecosystem. Notable investments include Interactio, TransferGo, CGTrader, Trafi, Eneba, and PVcase, with expertise in fintech, mobility, SaaS, and marketplaces.

Open Circle Capital and Iron Wolf Capital are emerging funds making positive contributions. Contrarian Ventures focuses on “green” tech and is making a noticeable impact.

Regional and international investors, including Karma Ventures, Trind VC, Change Ventures, Tera VC, ZGI, and global firms like Intel, Accel, Creandum, Insight Venture Partners, and Inreach, are actively co-investing.

Most VCs are generalists, but some have specialized expertise in specific sectors.

The Impact of Remote Work

With the shift to remote working during the COVID-19 pandemic, will people stay in your city, move out, or will others move in?

Vilnius, as the capital of Lithuania, remains the primary center of attraction for talent within the country. The continued growth of the tech ecosystem will draw even more skilled professionals to the city.

Vilnius offers a high quality of life and is an excellent location for building global tech companies.

Looking Ahead: Five Years

Where do you see your city’s tech scene in five years?

We anticipate the emergence of more than five unicorns originating from or based in Vilnius, establishing the city as a European hub for tech investment.

The tech ecosystem is projected to grow threefold, attracting talent from across the region, the CIS countries, and other parts of Europe.

Tomas Martunas, Founding Partner, Iron Wolf Capital

What technology sectors demonstrate strength within your tech ecosystem? Which areas generate the most excitement, and where are the notable weaknesses?

Lithuania, and particularly Vilnius, has secured a prominent position in the fintech sector, currently ranked fourth globally according to the Global Fintech Ranking. Vilnius has cultivated an environment conducive to the establishment and growth of fintech startups, successfully attracting major players like Revolut. The city also exhibits significant advancement in the laser technology industry.

Although lasers represent a relatively small portion of Lithuania’s overall exports, their superior quality is gaining international recognition. The projected increase in demand for lasers is a particularly encouraging sign. We are optimistic about the future of Lithuania’s laser industry, which led to our investment in laser manufacturer Litilit. Furthermore, Vilnius is home to numerous thriving SaaS startups, exemplified by Interactio, which experienced twelvefold growth between 2019 and 2020 and recently secured $30 million in funding.

I believe substantial untapped potential remains within the Vilnius ecosystem in the areas of deep tech and edtech, and we are beginning to see this potential realized. The opening of the Wargaming office, alongside the Unity branch, Game Insights office, and a number of independent game studios, provides a strong foundation for the gaming cluster to flourish.

Notable Startups in Vilnius

The city boasts a diverse range of innovative companies, including: Vinted, Tesonet, Turing College, Omnisend, Millo Appliances, NanoAvionics, Pixevia, Monimoto, Redtrack.io, Interactio, Litilit, and Foros.

The Investment Landscape

Significant funding opportunities are available to early-stage startups through EU programs, particularly those with a robust technical base and groundbreaking solutions. The Vilnius ecosystem has experienced considerable growth over the last five years, with an increase in the number of venture capital firms, a strengthened business angel network (LitBAN), and the launch of numerous accelerators.

There is a growing focus on early-stage and more ambitious investment concepts. However, many investors continue to concentrate on the Baltic and CEE regions, and still have progress to make in adopting the more globally-focused perspectives common in the Nordics and Western Europe. The increasing interest from foreign investors demonstrates the attractiveness of the Vilnius ecosystem and expands opportunities for founders.

The Impact of Remote Work

Vilnius presents a highly appealing destination for individuals and businesses. It offers affordable housing – a benefit many European capitals cannot provide – and, as remote work becomes increasingly prevalent due to the changes brought about by the COVID-19 pandemic, we anticipate a migration of people from expensive cities to more affordable locations like Vilnius.

The city is also a hub of innovation, rapidly advancing to rival and even surpass other European capitals in terms of living standards and career prospects.

Key Individuals Shaping the Startup Scene

Several individuals are instrumental in driving the Vilnius startup ecosystem, including: Mantas Mikuckas, Tomas Okmanas, Eimantas Sabaliauskas, Toma Sabaliauskiene, Rytis Lauris, Vladas Lašas, Rita Sakus, Tadas Burgaila, Inga Langaitė, Roberta Rudokiene, and, naturally, the founders of Iron Wolf Capital.

Looking Ahead: Vilnius in Five Years

I foresee Vilnius continuing its trajectory of growth and development, solidifying its position as a leading European startup hub. Favorable business conditions and a high quality of life are expected to attract further talent, contributing to the continued expansion of the ecosystem.

However, Lithuania is currently facing a challenge with brain drain, and proactive measures will be necessary to attract talent back to the country and ensure its retention.

Alex Gibb, Partner, Katalista Ventures

Regarding the strengths and weaknesses of your local tech ecosystem, which industry sectors stand out? What developments are you particularly enthusiastic about?
Lithuania has experienced significant growth in companies relocating operations from Scandinavia over the past decade, resulting in the establishment of numerous competence centers and specialized R&D facilities focused on intangible services. The expansion of the tech sector, largely centered around software development and engineering, is particularly encouraging. While our size limits specialization, Lithuania possesses a well-established history in laser technology.

Notable Startups in Vilnius

Could you highlight some of the most promising startups currently operating in your city?
Cogastro provides CRM solutions specifically tailored for insect farms – a remarkably unique and focused offering. Bored Panda achieved the top ranking on the App Store last year and continues to demonstrate substantial growth. Tinggly, where I have a co-founder role, is experiencing renewed expansion following the challenges presented by COVID-19, primarily serving the U.S. market. Furthermore, Vinted significantly surpasses others in both valuation and its positive contribution to recycling and reuse initiatives.

The Investment Landscape

What characterizes the tech investors in your city? How would you describe the investment environment? What are their primary areas of interest?

A growing angel investor network, LitBAN, is supported by a government co-investment fund. This fund recently facilitated a 34x return for early investors in Interactio. A solid selection of early-stage venture capital firms are present, however, a funding gap exists for startups seeking investments exceeding 2 million euros, often necessitating international fundraising. Investment focus generally leans towards B2B models, though the limited size of our geographic market means few investors maintain a highly specialized sector focus.

The Impact of Remote Work

Considering the widespread adoption of remote work during the COVID-19 pandemic, what impact do you foresee on the population of your city – will people remain, relocate, or will new residents arrive?
We anticipate an influx of new residents! Vilnius is a conveniently sized and appealing city, offering a high quality of life and easy access to natural landscapes for recreation. The evolving nature of hybrid work arrangements is still unfolding, and individuals will likely adopt models that best suit their lifestyles. A positive outcome is the increased emphasis on employee well-being and mental health by both employers and employees.

Key Individuals in the Startup Community

Who are the influential figures driving the startup ecosystem in your city – including investors, founders, legal professionals, and designers?
Greta Monstavice, CEO of Katalista Ventures, is a leading voice on sustainability and dedicated to empowering startups. JB Daguené at 70V is equipping B2B startups with tools for rapid growth. Sarune Smalakyte, leading Rockit, is fostering fintech companies within their co-working space and organizing numerous valuable community events.

Future Outlook

What is your vision for the tech scene in your city over the next five years?
I am optimistic about the future of Vilnius’s tech scene. A substantial number of new startups are emerging. A critical challenge will be ensuring that the next generation of tech professionals receives adequate training to meet the demands of an already competitive job market.

Jone Vaituleviciute, Partner at Startup Wise Guys

Regarding industry strengths, emerging areas, and weaknesses within the tech ecosystem… Vilnius has gained international recognition for its robust fintech sector. While governmental support significantly contributes to this, the city also benefits from a large pool of skilled professionals in banking, insurance, and related financial services. Several startup hubs and industry events further bolster this strength.

I am particularly encouraged by the increasing presence of major international companies – such as Revolut and SumUp – establishing operations in Vilnius. This influx not only enhances the ecosystem but also elevates the caliber of fintech professionals available.

Gaming and edtech are also demonstrating considerable growth, indicating a shift towards more business-to-consumer (B2C) focused ventures. However, integrating deep tech and research & development startups into the ecosystem and securing funding for them remains a challenge.

This is a common hurdle for many cities, but we are optimistic that Vilnius will progress in this area through increased collaboration between universities and venture capital firms.

Notable Startups in Vilnius

The city is home to several well-established startups, including Vinted, Trafi, TransferGo, Bored Panda, and Kilo Health.

Emerging companies to watch include:

• ZITICITY (focused on mobility solutions)
• kevin. (a fintech innovator)
• Ondato (another key player in the fintech space)
• Turing College (revolutionizing edtech)

The Investment Landscape in Vilnius

Vilnius accurately reflects the broader venture capital environment across the Baltic states. A number of pre-seed and seed-stage venture capital funds are actively investing, bringing valuable experience and vertical expertise to the table.

Historically, a robust early-stage funding ecosystem was lacking. This situation is rapidly evolving, with accelerators now supporting startups at the idea stage and a growing number of business angels – often successful founders themselves – providing substantial investment.

These new investors are offering funding amounts more aligned with Western European trends than previous Baltic norms.

Considering the impact of remote work… The COVID-19 pandemic has proven beneficial for smaller ecosystems like Vilnius. The normalization of remote investing, pitching, and sales has eliminated the need for extensive travel to secure deals.

Consequently, many entrepreneurs are choosing to remain in Vilnius, attracted by its high quality of life and tightly-knit community.

The Future of Vilnius’ Tech Scene

Within five years, Vilnius should be competitive with Western Europe and even the U.S. in terms of pre-seed and seed funding availability. The maturing venture capital ecosystem will enable startups to launch and reach Series A funding rounds with comparable resources.

We anticipate the emergence of new sectors, mirroring the success of fintech, and initiatives designed to retain local companies. While talent acquisition costs will likely increase, this is a natural consequence of growth.

Furthermore, experienced founders will continue to launch new ventures, attracting increased attention from international investment funds.

Lukas Kaminskis, CEO, Turing College

What sectors demonstrate strength within your tech ecosystem? Which areas generate the most excitement, and where are the weaknesses?

Vilnius has gained recognition for its thriving fintech and blockchain sectors. Companies like Revolut, for instance, hold banking licenses registered within the city. Significant strength is also evident in medtech and cybersecurity, with rapidly expanding companies such as Kilo Health and Nord Security. However, the educational landscape lags behind.

Specifically, many IT programs at Lithuanian universities do not adequately prepare students for global competition. Consequently, numerous companies are developing internal academies to enhance the skills of university graduates.

Could you highlight some of the most compelling startups in your city?

Notable startups include Omnisend, Nord Security, Attention Insight, and Turing College.

What characterizes the tech investors in your city? What is the investment climate like, and what are their primary areas of focus?

Lithuania boasts a robust pre-seed and seed investment environment, supported by investors like Iron Wolf Capital, Startup Wise Guys, and Practica Capital. Furthermore, the Co-invest Fund provides matching investments, multiplying accredited angel investor contributions by a factor of 3x to 5x.

Investors within Lithuania generally maintain an industry-agnostic approach.

How has the shift to remote work, accelerated by the COVID-19 pandemic, impacted population trends in your city? Are people staying, leaving, or moving in?

Trends in Lithuania mirror global patterns. Companies are planning to adopt a hybrid work model post-COVID, while continuing to prioritize remote work during the ongoing pandemic.

Who are the key individuals driving the startup ecosystem in your city – investors, founders, legal professionals, designers, and others?

Giedrius Kolesnikovas, a partner at Motieka & Audzevicius, is a prominent figure in the legal sector. From the investment side, Jone Vaituleviciute, Rytis Vitkauskas, Kasparas Jurgelionis, and Arvydas Bložė are key individuals who can facilitate access to European and U.S. capital.

What is your vision for the future of your city’s tech scene over the next five years?

I anticipate Vilnius will evolve into a leading tech talent hub in Northern Europe. The emergence of edtech startups and private training initiatives is addressing the shortcomings of public education policies over the past two decades.

Additionally, the current government is actively working to attract international tech companies to establish operations in Lithuania, as demonstrated by Wargaming and Moody’s, which have both created substantial centers within the country.