When many people think of new advancements in technology over the years, the ongoing development of Silicon Valley often comes to mind. There have been a large number of successful startup companies out of the US that have introduced a number of essential products and services over the years.
However, outside of the US, there have been a number of other influential countries that have contributed to the development of innovative technologies disrupting major industry sectors. One of these countries is Lithuania, a small Baltic nation that has gained notoriety over the years for its fast-expanding tech scene and startup culture.
The Rise of Lithuanian Unicorn Tech Companies Ecosystem
Lithuanian unicorn tech companies ecosystem has been in quick development over the years, making substantial strides in various industry sectors with major focuses on science, technology, engineering, and mathematics (STEM.) Because of this, there have been a number of new businesses created, many of them focusing on the development of sustainable green technologies in areas like renewable energy, waste management, and safer agricultural practices.
According to Dealroom, in 2023, startups founded and established in Lithuania raised an investment of EUR 292.3 million. One of the major growth contributors to Lithuania’s tech scene has been the support it has received from its government. Programs like Startup Lithuania have helped to create a number of accelerators to allow businesses to get the help they need to scale their operations while also gaining access to important incentives to expand their reach.
Lithuania has helped to produce a number of major brands, including three unicorn companies currently valued at over $1 billion USD.
1. Vinted
Vinted is a secondhand fashion marketplace that has received global recognition and has successfully reached a €5 billion valuation. The company was founded in Vilnius in 2008 and has since grown to over 80 million users across 16 markets.
The overall success of Vinted can be attributed to the brand’s focus on sustainability, affordability, and community building while also attracting a predominantly female user base. Most recently, the company completed a €340 million share sale which was primarily led by the U.S. private equity firm TPG. This not only helped to significantly improve the company’s valuation but also allowed employees to cash out their investments, with €100 million of the proceeds coming from employee shares.
2. Nord Security
Nord Security is a cybersecurity company headquartered in the Cyber City, Vilnius, Lithuania. Founded in 2012 and best known for its NordVPN service, Nord Security has achieved a $1.6 billion valuation and became the country’s second Lithuanian unicorn tech companies to launch.
Currently, Nord Security’s VPN service has over 14 million users worldwide and has recently raised $100 million in a funding round led by Novator. This latest round of funding has also brought in participation from major outside investment groups, including General Catalyst and Burda Principal Investments.
In 2022, Nord Security merged with another startup known as Surfshark and expanded its online security offerings, releasing new products like NordPass, NordLocker, and NordLayer. Nord Security now houses a team of roughly 1,700 people and operates in 20 countries worldwide.
3. Baltic Classifieds Group (BCG)
Headquartered in Vilnius, BCG is a digital advertising leader with over a $1 billion evaluation. The company operates 14 highly successful online classifieds platforms spread across Lithuania, Latvia, and Estonia.
In 2023, the company maintained a highly profitable EBITDA margin of 76% and is recording steady growth numbers that average an increase of 20% year-over-year. BCG was listed on the London Stock Exchange in July 2021 and is a highly recognized player in the Baltic’s digital advertising market.
Advantages of Transatlantic Partnerships Focused in the Baltics
Outside of the country’s impressive tech ecosystem, several key advantages make the Baltics a strategic location for establishing new transatlantic partnerships:
- Strong work ethic and adaptability: Lithuanian professionals are often highly trained in specialty roles and are known for their ability to thrive in highly adaptable business settings while embracing new challenges. They are eager to learn and contribute to innovative business projects and can be valuable additions to US companies looking to expand their international teams or operations.
- English Proficiency: With over 76% of Lithuanians proficient in multiple languages, the country excels at diversified communications. There are currently over 500 study programs across Lithuania conducted entirely in English. The country also has the highest ICT (Information and Communication) literacy rates in the European Union. This translates to a workforce where many professionals demonstrate complete fluency in English, making Lithuania an attractive hub for global tech collaborations.
- Cost-effectiveness: Lithuania can have a highly competitive costing structure when sourcing new talent. Companies are able to access a much broader pool of highly skilled talent without the high labor rates often found in other countries. Lithuania also has a business-friendly tax system and provides a number of government incentives designed for non-EU businesses looking to expand their operations overseas.
How InnoHub Lithuania Facilitates Strategic Business Development?
Organizations like InnoHub Lithuania are an important component businesses can leverage to create stronger transatlantic partnerships. InnoHub Lithuania acts as a conduit between Lithuanian unicorn tech companies and other international organizations and investors to help provide helpful resources and networking opportunities to support expansion efforts.
By facilitating mentorship programs, networking events, and business workshops, InnoHub Lithuania helps to create a sustainable platform for businesses to showcase their achievements and innovations to expand their presence across various markets.
Uncovering New Opportunities for Market Expansion
Lithuanian unicorn tech companies scene continues to present a number of exciting opportunities for US businesses looking to expand their strategic partnerships. With its strong talent pool, supportive ecosystem, and a growing number of successful startups, Lithuania offers a unique combination of innovation and cost-effectiveness that’s pretty hard to find in other areas around the globe.
Author Information:
Author Name: Diana Placiakiene
Author Bio: Diana, the Business Community Manager at InnoHub Lithuania, brings over a decade of experience in marketing, sales, events, and community building. Her career spans work with early-stage startups, government initiatives, and small businesses.
From 2013 to 2015, Diana represented Innovation Agency Lithuania in Silicon Valley, acting as a bridge between Lithuanian unicorn tech companies and the dynamic Silicon Valley ecosystem. She also led the San Francisco American Lithuanian community for over three years, launching innovative programs and initiatives to connect and empower professionals.
Diana holds an MBA from Mills College in Oakland, California.
LinkedIn: https://www.linkedin.com/in/dianaplaciakiene/
