Lithuania is no longer just an “emerging” market; it has officially entered its maturity phase. According to the latest Lithuanian Startup Ecosystem 2025 report by Dealroom and Startup Lithuania, the ecosystem’s enterprise value has reached a staggering €16.4 billion, representing a 5.9x growth since 2020.
While global venture capital markets faced a “dry” spell in recent years, Lithuania’s innovation engine shifted back into high gear in 2025. With a 1.7x increase in VC funding—rising from €131 million in 2024 to €221 million in 2025—the country has reclaimed its title as the fastest-growing startup hub in Central and Eastern Europe (CEE).
The Big Milestone: CAST AI Joins the Unicorn Club
The defining moment of 2025 was the rise of Lithuania’s latest unicorn. CAST AI, an autonomous Kubernetes cost-optimization platform, secured nearly €100 million in a Series C round, pushing its valuation past the $1 billion mark.
This achievement highlights a critical shift in the ecosystem: the transition from early-stage strength to breakout-stage success. While the number of total deals slightly dipped, the average deal size skyrocketed, signaling that investors are now placing larger bets on proven, globally scalable business models.
Key Performance Pillars in 2025
The report breaks down the ecosystem’s health across several key metrics:
- VC Investment Rebound: The €221M raised in 2025 marks the fifth year on record with over €200M in funding.
- Founder Retention: Lithuania boasts the lowest relocation rate in CEE. Only 26% of scaleups move their headquarters abroad, proving that the local infrastructure and talent pool can support companies even at a global scale.
- Diversity Excellence: Lithuania leads the region in women’s entrepreneurship. 33% of total enterprise value is generated by women-(co)founded startups—the highest in CEE—attracting 21% of all VC funds since 2020.
Dominant Industries: Software and Health Lead the Charge
Enterprise Software remains the heavyweight champion of the Lithuanian tech scene, but 2025 saw significant diversification into high-tech and biotech fields.
| Industry | 2025 VC Raised | Since 2020 VC Raised |
| Enterprise Software | €160M | €773M |
| HealthTech | €34.7M | €83M |
| Fintech | €15.5M | €419M |
HealthTech specifically saw a massive jump, anchored by Atrandi Biosciences, which raised €22.7 millionfor its single-cell drug discovery platform. Meanwhile, the emergence of “Tough Tech”—deep tech for defense and resilience—has become a strategic focus for 2026, with over 20+ startups now operating in this space.
Regional Dynamics: Vilnius vs. Kaunas
- Vilnius remains the primary engine, accounting for €15.5B (approx. 95%) of the national enterprise value. It currently ranks as the 4th largest and highest-growth hub in the CEE.
- Kaunas is carving out a niche as a “pragmatic” hub, growing 2.5x since 2020. It is particularly strong in Energy, Gaming, and Transportation, ranking 3rd among non-capital cities in CEE for VC investment.
The “Mafia” Effect: The Next Generation
A “virtuous cycle” is now in full swing. Former employees of the first two Lithuanian unicorns, Vinted and Nord Security, are actively founding a new wave of startups. This transfer of “smart money” and experienced talent is creating a self-sustaining loop that will likely fuel growth throughout 2026 and beyond.
“Our mission for 2026 is to keep strengthening the ecosystem and backing founders for the long term.” — Karolina Urbonaitė, Head of Startup Lithuania.
