Euronews Enterprise appears to be like on the elements which have contributed to Lithuania changing into one of many fastest-growing startup and fintech hubs in Europe, with a variety of quickly to be unicorns, often called soonicorns.
Lithuania, a small however vibrant nation within the Baltics, is shortly rising as one of many high fintech hubs in Europe, in addition to the world. Residence to unicorns equivalent to Vinted and Nord Safety, the nation presents a variety of first-class services for fintech corporations, each native and international, which need to arrange base there.
With a inhabitants of two.8 million folks, Lithuania is without doubt one of the smaller international locations in Europe, particularly in comparison with Western European powers equivalent to Germany, the UK, France and Spain.
Nevertheless, it has shortly established itself as one which punches effectively above its weight, on the subject of rising and supporting startups, particularly fintech ones, in comparison with the remainder of Europe.
Lithuania leads Baltics in startup progress, boosting fintech
Lithuanian startups have been the fastest-growing within the Baltics final 12 months, in keeping with the Lithuanian Startup Ecosystem 2023 report.
Between 2018 and 2023, the general enterprise worth of the nation’s startups soared 7.1x. Compared, within the Baltics, this determine was 2.7x for this era, whereas in Central and Japanese Europe (CEE), it was 3.6x.
Amongst Central and Japanese European international locations, Lithuania additionally bagged the second spot for enterprise capital funding final 12 months, elevating about €292m in funding.
Gintarė Narakienė, the previous head of Startup Lithuania, mentioned within the report: “In 2023, Lithuania’s startup ecosystem continued to develop steadily, establishing itself as one of the promising and dynamic startup hubs within the area.”
Other than unicorns equivalent to Vinted and Nord Safety, the nation additionally has a variety of soon-to-be-unicorns, often called soonicorns, equivalent to Argyle, CityBee and PVcase. These often have a valuation of between €200m to €1bn.
A few of its different fast-growing corporations, valued at lower than €200m embrace Affise, Whatagraph and BitDegree. Bootstrapped corporations equivalent to Hostinger, Bored Panda, Omnisend and Kilo Well being have additionally seen spectacular progress.
Within the capital Vilnius alone, there have been greater than 170 fintech startups in 2023, with a mixed worth of about €1.8bn. These startups additionally raised enterprise capital value roughly €228m within the 18 months to February 2024. Some notable Vilnius-based fintech startups have been Amlyze, Kevin, TransferGo and HeavyFinance.
These fintech corporations vary throughout industries equivalent to monetary administration, funds, mortgages and lending, regulatory expertise, cryptocurrency, wealth administration, insurance coverage, crowdfunding and extra.
Why does Lithuania entice so many fintech corporations?
There are a number of explanation why Lithuania has been attracting a rising variety of fintech corporations, as outlined under:
Excessive emphasis on worker well-being
One of many essential causes Lithuania attracts so many fintech corporations is due to its prime quality expertise, with a various vary of extremely certified and expert workers.
Lithuania additionally prioritises worker satisfaction and well-being, which has given rise to a wholesome, well-rounded work surroundings which locations nice worth on work-life stability and psychological well being. As such, they’re able to ship higher outcomes, additionally resulting in elevated worker retention.
The above method resonates particularly effectively with youthful staff, who make up the majority of fintech corporations’ workforces in Lithuania.
On a current journey to the nation, I met a number of fintech corporations equivalent to Hostinger, TransferGo, Revolut, ConnectPay and extra. One factor which actually stood out to me was the excessive degree of worker satisfaction at each considered one of these corporations, in addition to how passionate and engaged workers have been about their work.
This emphasis on worker engagement was additionally obvious within the design of workplaces, with vivid colors, trendy designs and open, collaborative layouts. Maybe unsurprisingly, Lithuania additionally gained the highest spot for the happiest nation on the earth for folks beneath 30, in keeping with the 2024 World Happiness Report.
Robust authorities help and initiatives
Lithuania presents a robust authorities help system to fintech corporations establishing within the nation, in addition to a number of initiatives, via organisations equivalent to Startup Lithuania, a part of Innovation Company Lithuania, Make investments Lithuania, Go Vilnius and Vilnius Techfusion, amongst a number of others.
This consists of connecting completely different startup founders, holding acceleration packages and workshops, in addition to providing help schemes, consultations and way more.
These businesses additionally present all the data companies, relocating workers, founders, traders and guests must arrange an organization or transfer privately to Vilnius. This consists of issues like how and the place to search out an house or home, the place to search out good faculties, tax and authorized issues, relocation companies and way more.
Businesses equivalent to Vilnius Techfusion additionally join completely different events within the fintech, life sciences, data expertise, lasers and recreation improvement sectors.
Ease of doing enterprise
The 2024 Worldwide Tax Competitiveness Index (ITCI) places Lithuania in fifth place for tax competitiveness. Not solely that, however the Enterprise-Pleasant Metropolis Notion Index, by Rising Europe, has topped Vilnius probably the most business-friendly metropolis in rising Europe.
This was based mostly on elements equivalent to expertise pool, high quality of life, enterprise local weather, connectivity and infrastructure, model, good metropolis improvement, financial potential and native authority help.
Lithuania additionally is available in fourth within the European Union for common web pace fee, in keeping with Make investments Lithuania, and is very remote-work pleasant.
Vilnius is ranked eighth on the earth for distant work, with 20 co-working areas, in keeping with Go Vilnius, whereas additionally being the third globally for on-line safety.
These have all been elements contributing to the benefit of doing enterprise within the nation.