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International Internet Magazine. Baltic States news & analytics Monday, 21.09.2020, 05:00

EUR over 250 mln invested in Estonian startups in 2019

BC, Tallinn, 23.12.2019.Print version
Estonian startups raised over 250 mln euros in investments, gave work to more than 5,000 people and paid over 60 mln euros in labor taxes to the state during 2019, informed LETA/BNS.

The startup sector as a whole grew by more than 30% during the year. 

The manager of Startup Estonia, Maarika Truu, said the Estonian startup community is growing at a rapid rate and a new generation of startup entrepreneurs is emerging here.

"Innovative solutions and new technologies by our startup entrepreneurs serve as an example both in Europe and globally, with green economy and the field of finance in the first place showing particularly high growth potential today," Truu said in a press release. 

There are 650 startups active in Estonia as at the end of 2019.

Defined as startups, putting it simply, are companies that are oriented to global growth whose product or business model is scalable globally. Also, in accordance with convention, companies that have been in business for less than 10 years are defined as startups. 

Startup Estonia is currently in the process of updating its database of Estonian startups to put it on a new state-of-the art platform. This will allow startups is easily let know of themselves and join the community.

"We will launch our new database at the beginning of next year. It will allow us to get a much more precise statistical overview of our local startups in the future," Truu said.

The number of employees at Estonian startups crossed the 5,000 mark by the end of this year, having been 3,800 in 2018.

As before, the biggest employers in the Estonian startups sector are Transferwise, Pipedrive and Bolt.

By the end of the year, startups will have paid 60 mln euros to the Estonian state in labor taxes, which is more by one-third than the 45.5 mln euros paid in 2018.

In excess of 250 mln euros was invested in Estonian startups during the year. Ten years ago, just four mln a year was invested in startups in Estonia. 

"The startup community of Estonia has reached a stage in its development where we no longer have to describe who we are and where we come from, but can build up companies, develop them and bring them to global markets, hence creating value both for investors as well as the economy and society more broadly," Truu said.

"Where earlier our aim and the aim of the state used to be to enliven the startup community, now we can clearly see that there is a functioning community in Estonia already. It is our aim and the aim of the state to offer to starting entrepreneurs a cohesive, supportive and well-functioning environment for the implementation of their ideas and also creation and developing of a startup," the head of Startup Estonia said.

Startup Estonia is a state-run program for developing the Estonian startup ecosystem. The Startup Estonia program is implemented by KredEx.

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