From Hidden Gem to Angel Magnet: Why Lithuania Is the Place to Watch for Startup Investors
- austejalazaraviciu9
- 05-21
- 3 min. skaitymo
By Roberta Rudokienė, CEO of LitBAN
If you asked me five years ago whether Lithuania would become one of the most dynamic startup investment hubs in the region, I would’ve said: “It’s not a matter of if — it’s just a matter of how fast.”
Well, here we are. And we’re not just catching attention — we’re delivering results. According to Dealroom.co report, Lithuania's tech ecosystem has been the fastest-growing in Central and Eastern Europe over the past five years. In 2024, Lithuanian startups reached a combined valuation of over €16 billion — a 39-fold increase in just a decade. The ecosystem now boasts more than 1,000 startups, 3 unicorns, and a bold vision for the future. So, what’s the secret sauce?
Angel Power That Fuels Real Growth
Lithuania’s startup ecosystem has come a long way thanks to the efforts of many — founders, accelerators, VCs, ecosystem builders, and policymakers. But one piece of the puzzle that often goes under-acknowledged is the early-stage capital and guidance that angel investors bring to the table.
In Lithuania, business angels have become a critical part of how startups get through their most vulnerable early phases — when there’s plenty of ambition, but capital is still hard to come by. Since 2018, LitBAN members have invested over €50 million into startups — with €12.1 million invested in 2024 alone.
More than 60% of all publicly announced startup deals in 2024 in Lithuania involve business angels — a sign that early-stage investors are not just participating, but actively helping shape the next generation of companies.
And when things go right, the results are impressive: 6 revenue-generating exits in 2024, including 2 that delivered returns of over 10x*. Given the size of our market, those are impressive results.
A Unique Incentive — One That Foreign Investors Envy
Lithuania has something many other countries don’t — a co-investment model that gives business angels a real edge. Through Coinvest Capital, an evergreen venture capital fund with over €44 million in committed capital, angels can co-invest in startups on equal terms. But here’s the part investors across Europe envy: in a successful exit, Coinvest Capital caps its own return at 4-8% compound annual interest, and any additional profit goes straight to the co-investors**.
It’s a rare model in the EU and a powerful incentive to support early-stage deals. One of the standout examples? The Interactio exit, where this scheme helped boost angel returns from 9x to an incredible 34x***. Not bad, right?
Interactio: an Exceptional Success
One of our proudest moments? The early investment into Interactio, a Lithuanian startup revolutionizing remote interpreting. Backed by LitBAN angels in its early stages, the company scaled globally — and rewarded its early believers with a strong return due to the incentive offered by Coinvest Capital, that increased return from 9x to almost 34x.
Another great win? Paysolut, a Lithuanian fintech that caught the eye of international players and successfully exited through an acquisition by SumUp. Other exits of Lithuanian startups have loudly sounded recently: Mailerlite, NanoAvionics, Frontu, Pixelmator and others. These are the kinds of success stories that are now becoming normal in our ecosystem.
Building a Connected Future
We’re proud to say that LitBAN is an official member of EBAN and actively participates in international initiatives aimed at boosting cross-border investment. From study trips to joint angel training programs and knowledge exchange, we believe the future of angel investing is collaborative.
In fact, we’ve made it our mission to not only grow Lithuania’s investor base but also connect with like-minded networks across Europe. Because when angels work together, startups scale faster.
A Growing, Diverse Community
What makes me especially proud is that 23% of our members are women — a number we’re working to grow even further. Through our Angel School and other educational programs, we’re actively lowering the barrier to entry for first-time investors and making sure everyone, regardless of background, can step confidently into the angel investing space.
So, why Lithuania?
If you’re an angel investor and don’t want to miss your next great investment opportunity — you should be looking at Lithuania. With experienced angels, bold founders, real returns, and a startup ecosystem that’s growing faster than anywhere else in the region, there’s no better time to explore what’s happening here.
Sometimes, all it takes is being in the right place at the right time. This might just be it. We’re not just another dot on the European startup map. We’re the bridge between Nordic ambition and Baltic brilliance. And we’re just getting started.
P.S. If you are interested and would like to know more, drop us a message info@litban.lt and let's talk.
* Source: LitBAN members annual survey 2024.
** Source: https://www.coinvest.lt/
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