Backing Innovation in the Baltics: The VC Firms Shaping Lithuania’s Startup Scene

Lithuania’s startup ecosystem has experienced remarkable growth over the past decade, with its combined value surpassing €16 billion — a staggering 39x increase in just ten years, according to a recent Dealroom report.

A lot of this growth is recent, Dealroom data shows: The most populated Baltic country was also the fastest-growing startup hub in Central and Eastern Europe (CEE) in the last five years.

In 2024 alone, Lithuanian startups raised €128 million, with early-stage investments reaching €108 million, marking the second-best year on record. The landscape continues to be dominated by unicorns like Nord Security and Vinted, which was recently honored with the Leader of the Year award during the Vilnius TechFusion Awards 2024. However, a new wave of startups, particularly those founded post-2020, is rapidly scaling.

This makes for a tech scene that isn’t limited to a single category. The main sectors driving this expansion include cybersecurity, fintech, medtech, defense, and AI. Vilnius, the capital, has emerged as an EU leader in cybersecurity, while Kaunas, Lithuania’s second largest city, seems to be a medtech hidden gem.

At the heart of this dynamic ecosystem are venture capital firms that fuel innovation by providing crucial funding to startups. Below is a list of the top 10 most active VC firms in Lithuania – both local and international.

Top Lithuanian VC Firms

First Pick

An early-stage investor, First Pick focuses on scaling Baltic tech startups, particularly in SaaS, fintech, and deep tech. Portfolio startups include Samphire, Tingit and others.

NGL

Specializing in early and growth-stage investments, NGL supports high-potential startups with global ambitions. Portfolio highlights: Amlyze and AISPECO.

Coinvest Capital

A co-investment fund that works alongside angel investors, Coinvest Capital has played a role in scaling multiple Lithuanian startups (Portfolio: UDS, Axiology).

BSV Ventures

A Baltic-focused VC firm investing in pre-seed to Series A startups across various tech verticals. Notable investment: BrachyDose.

ScaleWolf

ScaleWolf backs early-stage tech startups with a focus on scalable business models and cross-border growth. It invested in startups such as Aktyvus Photonics and Blackswan Space.

Practica Capital

One of Lithuania’s most well-known VC firms, Practica Capital invests in seed to Series A rounds, backing startups like PVcase, TransferGo, and Eneba.

Iron Wolf Capital

Iron Wolf Capital is fund focused on early-stage and growth-stage startups, particularly in AI, cybersecurity, and SaaS. Portfolio highlights: Traxlo, Turing College (YC W21).

Foreign VC Firms Active in Lithuania

Bad Ideas Fund

A global investor focusing on non-traditional, high-risk ventures — hence its name! — Bad Ideas Fund has made significant investments in Lithuanian startups such as Leya-AI.

Plug and Play Ventures

A major player in Lithuania’s accelerator scene, Plug and Play has supported numerous early-stage startups through programs like the Startup Lithuania Accelerator.

Superhero Capital

Nordic-Baltic VC firm Superhero Capital invests in early-stage startups across fintech, AI, and deep tech (Cyber Upgrade, AISPECO).

Looking Ahead: A Promising Funnel of Lithuanian Startups

“Despite global market challenges, Lithuanian startups have demonstrated resilience and adaptability, showing greater stability and growth than many regional counterparts,” said Karolina Urbonaitė, head of Startup Lithuania at Innovation Agency Lithuania.

This makes Lithuania a hidden gem worth exploring for new entrants who could join the current top 10 VC firms in funding the next wave of unicorns. Read Dealroom’s full report here to find out which ones are already in the pipeline, and how Lithuania’s tech funnel is shaping up.