In the first quarter of 2023, Lithuanian startups paid EUR 82 million in taxes, which was 40% up on the previous year and EUR 0.5 mln more than the preceding quarter. Innovation and growth in the number of employees have come to a halt over the last six months, compared to a much more negative situation in other developed countries.

Despite the prevailing trend of layoffs in major tech companies worldwide, the number of local talents employed in Lithuanian startups has remained stable, with approximately 17.3 thousand employees. Notably, larger startups have been expanding their workforce.

In terms of salaries, the average earnings for talent working in startups in the first quarter of 2023 were EUR 3.7 thousand before taxes, marking a 16% increase of EUR 500 compared to the previous year. Taking into account year-end bonuses, the average salary in Lithuanian startups in Q4 2022 reached EUR 4.2 thousand.

While startups have shifted their focus towards economic sustainability and are reviewing processes to increase efficiency and profitability, there is no indication of mass redundancies threatening the Lithuanian startup ecosystem. In fact, the number of employees has grown by 12% or 1.8 thousand compared to the previous year.

StartupBlink‘s latest index confirms that Lithuania’s startup ecosystem is on a steady upward trajectory. With impressive growth in cities such as Vilnius with a jump of 7 spots, Kaunas with a jump of 13 spots, and Klaipeda with an incredible jump of 195 spots in the Global Startup Ecosystem Index, the country is quickly establishing itself as a hub for innovation and entrepreneurship.

With a highly educated workforce, modern infrastructure, and favorable business environment, Lithuania offers investors a unique opportunity to be part of a dynamic and forward-thinking startup community.

Lithuania’s three ranked ecosystems all have good momentum.

• ­Lithuania remains stable at 17th globally, as all its cities improved their global rank.
• ­Lithuania remains close to the top 10 in Europe (11th) and ranks 9th in the EU.
• ­Lithuania has 3 cities in the global top 1,000, with one city in the top 100 and one city in the top 200. This makes Lithuania the only country in the Baltics with 2 cities in the top 200.

Lithuania has achieved inspiring milestones considering it has a relatively low population. The country has not only shown its unique voice in its foreign policy but has also managed to build a successful startup ecosystem. The relatively low cost of living and its skilled software developers give a positive boost to the national ecosystem.

Fintech is a core industry focus in Lithuania, where constant innovation and the government’s easing of regulation, including a blockchain sandbox, are attracting major international players. The Fintech headcount grew by 19% year-over-year in 2022, reaching 7,000 employees.

But fintech is not the only sector providing good news. One booming sector with an international reach in Lithuania is life sciences, the fastest growing in the EU with steady annual growth.

The maturity of local startup ecosystems is reflected in the ways the community is self-organizing. In addition to numerous gatherings and events, Lithuania’s startup sector now has its own association, Unicorns LT, which seeks to accelerate ecosystem growth even further.

With friendly business regulations, government support for funding, and an open data policy, Lithuania’s public sector has created an environment that nurtures startups. Startup Lithuania, the country’s one-stop shop for startups, is promoting a Startup Visa catering to foreign entrepreneurs and allowing a temporary residence permit for up to a year. In addition, Lithuania boasts the Startup Employee Visa, an initiative that sets out to attract highly skilled workers.