Skype may have had its last call, but a new chapter in Estonia’s innovation story is well in the making now. In the first quarter of 2025, Estonia’s DeepTech companies demonstrated impressive growth, with revenues increasing by 10% compared to the same period last year, according to Startup Estonia.
Between them, the companies have surpassed the €100M revenue threshold. The sector has also become an increasingly important contributor to state coffers, with a big increase in labour taxes paid year-on-year.
“Estonian DeepTech startups are characterised by their ability to attract new investments,” says Inga Kõue, project manager at Startup Estonia. “Since 2023, we’ve seen that Estonian DeepTech companies have proven their investor readiness, with over half of all investments each year directed specifically toward DeepTech,” Kõue notes. “As a result, these companies have achieved revenue growth more quickly.”
Defence and AI lead the charge
According to Startup Estonia, 167 deep technology companies were operating in Estonia’s startup sector by the end of the first quarter. Among the highest-earning startups, defence industry companies stand out, while AI and green energy solutions are also in demand.
Milrem, a developer of robotic defence systems, posted the highest revenue in the first quarter of 2025, reaching €18.8M. It was followed by Defsecintel (€17.5M), Threod Systems (€8.6M), autonomous delivery robot developer Starship Technologies (€6.1M), and Cleveron (€5.9M), which specializes in automated parcel delivery solutions.
Estonian deep tech companies secured five funding deals in the first quarter totalling €23.4 million—over 20% of the total investment volume raised by the entire startup sector during the period.
In Europe, DeepTech is already the most funded sector. The volume of investments directed toward deep technologies in recent years has surpassed the previously dominant FinTech sector, where Estonia also produced a couple of unicorn stories.
“Developments in the deep tech field are truly exciting and promising today, and a substantive discussion on the latest trends is also expected during the Latitude59 conference in May,” Kõue added.
Estonia’s new growth engine
Among Estonian deep tech startups, Stargate Hydrogen secured the largest investment in the first quarter, with a deal worth €11M. Other companies that attracted significant investments included Elcogen (€5M), Frankenburg Technology (€4M), Gridio (€2.4M), and Galttec (€1M).
Companies operating in the DeepTech sector paid €16.2M in labour taxes to the state during the first three months of the year, 16% more than during the same period last year. As of the end of March, the sector employed 2,415 people, a sizeable 17% of all Estonian startup sector employees.
Milrem was the largest employer at the end of the first quarter with 308 employees, followed by Starship Technologies (171 employees), Threod Systems (160 employees), Skeleton Technologies (115 employees), and Cleveron (113 employees).
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