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Report: Estonia’s DeepTech startups attract record funding, pacing the region

Estonia leads the Baltics' DeepTech boom, as its startups are attracting record investment in AI, CleanTech, and more, shows a recent report from Dealroom and Iron Wolf Capital.

After a few trying years, the tech ecosystem seems to have found its footing. A recent report paints a bright picture of the Deep Tech, AI, and CleanTech startup scene in the Baltics. Authored by and Iron Wolf Capital, with the support of Startup Estonia, the 2nd Baltic Deep Tech Report dives into the region’s rapid growth and surging investor interest, with Estonia ranking first in many important categories.

First and foremost, Estonia boasts over 920+ currently active and funded startups with a combined enterprise value of €16,2B. Despite all the turbulence, in 2023, the country led the region in total VC investments, attracting over €334M, and per capita numbers, standing at €247. The nearest contender, Lithuania, reached €105 per capita, while the CEE average is just €12.

DeepTech powerhouse

More will come, say the authors, highlighting a strong pipeline of promising startups in the hottest areas. With over 260 DeepTech and 100 AI startups analysed, the Baltics have a significant concentration of innovative companies and the number is growing. Some — like Klaus — have already made a successful exit, but most are on their way there.

Since 2019, combined enterprise value of DeepTechs in the region has grown by 3,6X, reaching over €2B. All in all, DeepTech & AI startups now account for 20% of the Baltic startup ecosystem by value, which is a record share. This impressive growth outpaces other European regions, solidifying the Baltics’ position as a rising DeepTech hub. Estonia, with its reputation as a proven test bed with excellent expertise, is leading the wave.


The figures could go higher, as investment in Deep Tech is booming. Baltic DeepTech startups have already secured a record-breaking €160 million in VC funding in the first half of 2024, surpassing the total investment from all previous years. What is even more impressive, 40% of all VC funding in the Baltics so far this year has gone towards Deep Tech startups. Here, Estonia shines bright once again: Skeleton, Starship, Stargate Hydrogen and Elcogen secured leading rounds in the region.

Still, much work is yet to be done. “DeepTech can play an important role in solving complex economic and societal problems, but itʼs a long and bumpy road to positive impact,” urges Vaido Mikheim, DeepTech Sector Project Lead at Startup Estonia.

The complete Baltic Deep Tech Report can be accessed and downloaded here.

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