04.06.2024 - Startups, Technology

New report available on Baltic 'Deep Tech' scene

The second edition of the Baltic Deep Tech Report, was launched at the Latitude59 startup conference in Estonia. It paints a vibrant picture of the region’s Deep Tech, AI, and Climate Tech startup landscape.

Co-authored by dealroom.co and Iron Wolf Capital, with contributions from Startup Estonia, Commercialization Reactor, and WALLESS, the report unveils key insights into the ecosystem’s rapid growth and growing investor interest.

The report delivers a current snapshot of the 2024 startup and investment landscape in the Baltic region. By placing these insights alongside data from 2023 and a five-year historical trend, the report established patterns that are shaping the market.

While the spotlight is on Deep Tech and AI companies, the report also examines the critical infrastructure supporting these advancements, including universities, spinoffs, and emerging tech hubs in key cities.

“This year’s report highlights the thriving ecosystem of Deep Tech, AI, and Climate Tech startups. Investments are growing and the value created is growing even faster. Amazing companies are being built. Marking a significant shift from the previous edition, we exclusively examined a list of over 100 “AI-first” companies in the region that are building products at the forefront of technological advancements,” added Kasparas Jurgelionis, Managing Partner at Iron Wolf Capital.

This sharper focus provides a more accurate representation of the Deep Tech landscape, even if it means fewer companies are included. Another novel addition to the report is the introduction of the Top Deep Tech Startups list. This ranking goes beyond basic metrics, considering factors like company growth, founders’ experience and education, funding potential, team composition, and market relevance, offering a well-rounded view of the most promising players in the Baltics’ Deep Tech scene.

Three key takeaways from the 2024 Baltic Deep Tech Report:

  • Strong Pipeline: The Baltic region boasts a strong pipeline of promising Deep Tech, AI & Climate Tech startups, with the report analyzing data on over 260 Deep Tech and over 100 AI startups in the region. Notably, 20% of the combined enterprise value of Baltics startups in 2024 stems from Deep Tech & AI companies.
  • Deep Tech Investment Soars: 2024 is off to a phenomenal start in terms of Deep Tech VC funding. With less than half the year completed, Baltic Deep Tech startups have already attracted a record-breaking €160 million in VC funding. This surpasses the total investments across all of 2019, 2020, 2021, and even 2023 (€157M). This is further bolstered by the fact that 40% of VC funding in the Baltics so far this year has gone into Deep Tech startups.
  • Impressive Growth: The Baltic Deep Tech scene has experienced a staggering 360% growth in the last five years, outpacing other European regions.

In addition to the specific focus on the deep tech startup ecosystem and funding developments, the report takes a broader look at each of the Baltic states’ individual startup ecosystems, highlighting the existing as well as future unicorns and noteworthy university spinouts. 

“Latvia is quickly becoming a key player in the deep tech sector, thanks to its strong emphasis on scientific innovation and reaching global markets. The country is focusing on exciting areas like smart materials, biomedicine, smart energy, ICT hardware, and bioeconomics,” added Ilona Gulchak and Anton Adamovitch from Commercialization Reactor. “For this growth to continue, it’s crucial to continue building a supportive ecosystem that should effectively address challenges like funding, attracting talent, and connection to industry.”

The complete Baltic Deep Tech Report can be accessed and downloaded from Dealroom.co’s website.

Source: Press release (www.labsoflatvia.com)

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