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Forbes: Upcoming startup hubs such as Tallinn are attracting investment

Previously dominated by London, Paris, Berlin, and Stockholm, startups are now being originated all over Europe, creating a powerful interconnected ecosystem. Upcoming hubs, including cities such as Tallinn, are growing rapidly and starting to attract investment, with plenty of room to grow.

With all this potential, there is no reason why European startups can’t match Silicon Valley. But Europe still needs more founders to match the ambitions of those across the pond, Forbes writes.

According to Forbes, it’s no surprise then that this huge funding gap is driving more U.S. VCs to join the action in Europe. In 2018, 7% of venture capital deals into European startups involved at least one Silicon Valley venture capital firm, up from three percent in 2013.

Estonia is a great place for innovation

Estonia has a two-decade track record of successful innovations and investments thanks to its smart people and a unique environment which enables the accelerated development and commercialisation of IP.

Estonia’s journey began in the 1990’s when Estonian engineers developed and scaled Skype using ingenuity and determination. The subsequent exit of Skype provided invaluable experience, capital and policy stimulus to create one of the world’s most successful entrepreneurial ecosystems.

Proof of success by global investors

Numerous Estonian early stage companies including TransferWise, Skeleton Technologies, Adcash and Pipedrive have secured venture capital and private equity from global investors. Corporate venturing such as Daimler AG’s investment in Starship Technologies and Didi Chuxing’s and Daimler AG‘s in Bolt (ex Taxify) also grows. Exits including Planet OS, Zeroturnaround, GrabCAD and Teleport provide proof of concept.

What drives Estonia’s success? Smart people with world-class IT skills and Europe’s best entrepreneurial and competitive performance. A pro-business environment with digital infrastructure ideal for innovation and testing. Our compact domestic market makes us open to global ideas, growth and investment.

Interested in investing in Estonia? Read what opportunities the country has to offer for VC investors here or just use our unique e-Consulting service to get answers to your questions.

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What is it like to run a business in Estonia? How to benefit from the e-solutions and the efficiency of our business culture? What are the opportunities in specific sectors? Who to partner up with?

The Estonian Investment Agency’s team is happy to help you via its complimentary e-Consulting service, organize online or offline follow-up events such as virtual investment visits and guide you through the fairly simple process of investing in Estonia.

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