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Friday, 26.04.2024, 06:03
H1 turnover of Estonian startups grows 40% on year
Among Estonian startups, the biggest turnovers were
generated in the six-month period by Bolt, 132.7 mln euros, Pipedrive,
30.6 mln euros, Adcash, 16.5 mln euros, Starship Technologies,
8.9 mln euros, and Fiizy, 7.7 mln euros.
Maarika Truu, manager of Startup Estonia, said
that like many others, the startup sector is definitely affected by COVID-19.
However, despite the hectic times, we are still seeing growth in the Estonian
startup sector in terms of the number of employees, employment taxes paid,
investments raised and turnovers, she said.
"At the same time, we need to consider that the
COVID-19 outbreak has had its effect on startups' turnover as well. Compared to
the first quarter, there was a decrease in turnover of -17% in the second
quarter," Truu said.
"Estonian startup sector has shown great resilience
this year, starting the year with record-breaking news and celebrations from
2019 and riding straight into the COVID-19 related unknown. We were prepared
for an even bigger impact by the pandemic reflected in our startup sector
half-year statistics," she said.
Statistics from the Estonian Tax and Customs Board show that
at the end of the second quarter of 2020, Estonian startups employed 6,084
people locally, 15% more than the year before. However, employee numbers have
grown by only 1% compared to the end of 2019, revealing a significant impact
from COVID-19.
The top employers in the Estonian startup sector are Transferwise
with 954 employees and 61 new hires, followed by Bolt with 547 employees and 48
new hires, Pipedrive with 386 employees, Veriff with 226
employees, and Monese with 140 employees.
36% of the employees of Estonian startups are women and 64 %are
men. Approximately 26.7% of the employees have foreign citizenship, including
6.8% who have EU citizenship and 19.9% who are citizens of non-EU countries.
62% of the employees have higher education and 32% of
employees have general education or vocational education based on secondary
education. The proportion of employees with higher education among foreign
employees in Estonian startups is even higher -- 76.5%.
Most of the founders of startups have Estonian citizenship,
with foreign nationals accounting for 28.4% of startup founders. The average
age of a founder is 35 years. The proportion of female startup founders has not
changed a lot and stays at around 15%.
According to Statistics Estonia, during the first six months
of 2020, the average monthly gross salary in Estonian startups was 2,508 euros,
which is 1.8 times more than the Estonian average. Employees aged between 41-50
earn the biggest average monthly gross wage, 3,385 euros, followed by employees
aged between 31-40, whose average monthly gross wage is 2,932 euros. The
average monthly gross wage for foreign employees is 2,506 euros.
Employment trends are also reflected in the employment taxes
paid by startups. At the end of the second quarter of 2019, the total
employment tax contribution by startups since the beginning of the year stood
at 35.2 mln euros. At the end of June 2020, it totaled 47 mln euros,
representing a year-to-year increase of 34%.
The largest payers of labor taxes among startups in the
first six months of 2020 were Transferwise with 6.7 mln euros, Bolt with
5.3 mln euros, Pipedrive with 4.9 mln euros, Veriff with 1.8 mln
euros and Paxful with 1.7 mln euros.
Based on the crowdsourced database and Estonian Startup
Database, a total of 142.7 mln euros was invested into Estonian startups during
the first half this year. In total, there have been 35 new investment deals
this year. In the first half of 2019, there were 27 new investment deals, worth
altogether 119 mln euros.
The biggest investments in the first half of 2020 were
raised by Bolt, 100 mln euros, followed by Veriff with 14 mln
euros, Pactum with 2.7 mln euros, Milrem Robotics with 2.7 mln
euros, Jobbatical with 2.6 mln euros, Planet 42 with 2.2 mln
euros, Katana with 2 mln euros, and Viveo Health with 2 mln
euros.
The biggest acquisitions in the ecosystem so far this year
are the acquisition of Pocosys, a banking software provider, by Opera.
Secondly, the global billing platform Fortumo was acquired by Boku.
Startup Estonia is a governmental initiative aimed to
support the development of the Estonian startup ecosystem in order for Estonia
to be the birthplace of many more startup success stories to come. The Startup
Estonia program is managed by the Kredex foundation.
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