Why is Lithuania one of the most startup-friendly countries in Central and Eastern Europe?
Startups are choosing Lithuania not only to launch their businesses but also for long-term growth. This is evidenced not only by the value of the startup ecosystem, which has grown nearly sixfold over five years to reach 16.4 billion euros, but also by the fact that startups based in Lithuania that have reached the growth stage are the least likely in Central and Eastern Europe to relocate their headquarters abroad – only 26 percent of Lithuanian startups take this step.
By comparison, this figure stands at 50 percent in Estonia and as high as 70 percent in Latvia.
“A strong startup ecosystem isn’t measured by the number of companies that have been established. What matters most is how many choose to grow here and reach the next stage of development. We are creating an environment where the most ambitious businesses see Lithuania not as a first step, but as the best place for long-term growth. By implementing the “3i” economic transformation plan, we are systematically improving access to capital, reducing the administrative burden, investing in the startup ecosystem in the regions, strengthening artificial intelligence infrastructure, and creating a clear regulatory environment for innovation. The goal is to make it as easy as possible for businesses in Lithuania to start, expand, and compete in international markets,” says Edvinas Grikšas, Acting Minister of Economy and Innovation.
These goals are being pursued not only by improving the overall business environment, but also by implementing specific measures to strengthen the startup ecosystem. This year, the ministry has allocated 5 million euros for the creation, development, and expansion of startups in central and western Lithuania. These investments are intended to help innovative companies develop product ideas, participate in hackathons, access pre-acceleration and incubation services, and reach the market faster.
Measures are also being implemented to help businesses prepare for the requirements of the European Union’s Artificial Intelligence (AI) Act. This provides businesses with greater clarity when developing and implementing AI solutions and helps them develop innovations more quickly and securely.
Lithuania stands out for its investments in startups and women's entrepreneurship
In 2025, Lithuanian startups attracted 220 million euros in investments. Lithuania’s strong position in the region is also confirmed by the fact that, in terms of venture capital investment per capita, Lithuania has remained second in Central and Eastern Europe since 2020 and exceeds the regional average by more than four times. Lithuanian startups have also attracted at least 70 unique investors every year for five consecutive years.
The country’s competitiveness is also reflected in the results of its major cities. In 2025, Vilnius-based startups attracted 212 million euros in venture capital investments – 66 percent more than in 2024. Since 2020, Vilnius has ranked third among the largest startup hubs in Central and Eastern Europe in terms of venture capital raised, trailing only Tallinn and Prague. Furthermore, Vilnius is the fastest-growing city in the region in terms of value created by startups.
Kaunas ranks third among non-capital cities in Central and Eastern Europe in terms of venture capital investments attracted since 2020.
“These results show that Lithuania already has a solid foundation for the continued growth of its startup ecosystem. The next step is to create more opportunities for innovative businesses to emerge and grow throughout Lithuania. By implementing the “3i” plan, we aim to ensure that by 2030, at least 30 percent of new investments reach the regions. That is why we are strengthening the infrastructure necessary for investment, developing free economic zones and industrial parks, and expanding the network of coworking centers in the regions,” says E. Grikšas, Acting Minister of Economy and Innovation.
Lithuania’s startup ecosystem also stands out in terms of women’s entrepreneurship. Startups founded or co-founded by women account for 11 percent of all Lithuanian startups – more than the averages for Central and Eastern Europe and Europe as a whole (8 percent each). Since 2020, such companies have attracted 21 percent of all venture capital investments. In Europe, Lithuania is second only to Finland (26 percent) in this regard.