The Baltic region is small but incredibly mighty when it comes to startups. The founding of Skype is often credited as the beginning of the startup boom in this region. The community thrived in the last couple of years, and cities like Tallinn, Riga, and Vilnius have become the go-to locations for individuals with revolutionary ideas willing to put in the work and find like-minded people. The region now has thousands of startups, as well as more than 20 unicorns.
The current Baltic ecosystem can offer exceptional networking and the ability to meet inspiring entrepreneurs, with experts from all over the world flocking to the area. So, if you are looking for a startup-friendly region to take your skills to the next level, the Baltics should be on your list.
What makes the Baltics startup-friendly?
Latvia, Lithuania, and Estonia, three countries that make up the Baltics startup scene, have a population of just a bit over 6 million people. However, their population is tech-savvy, which probably led to the initial success of several startups several years ago. Curiously, startups from the Baltic region survived the pandemic and continued to thrive. If you are thinking about moving there, here’s what you need to know:
Startups are supported by the government
The economic crisis of 2008 was devastating for many countries, but Latvia wasn’t one of them. In an attempt to find new employment, Latvians began exploring the world of startups and essentially helped the country recover faster. Latvia also passed the Startup Law before other countries and has startup-friendly taxes.
Countries like Lithuania and Estonia followed, which supported the growth of the startup ecosystem in the area. Registering a business is easier here than in the rest of Europe and involves far less paperwork. Furthermore, these three Baltic countries offer financial support for startups because they recognize the potential of creative individuals and are excited to assist with new technologies.
Quality of life
Those planning to relocate to the Baltics should know that the countries have a high quality of life. Living there is more affordable than in Western European countries, so many entrepreneurs decide to move to Latvia, Lithuania, or Estonia. Furthermore, the crime rate is among the lowest in Europe. The startup community consists of local and international talent, and the regular meetups provide opportunities to network and meet new people.
Some entrepreneurs might be worried that geo-restrictions could have an impact on the availability of the content they need to run their business. If you are among them, there’s a way to bypass the geo-restrictions by using a Virtual Private Network, also known as VPN. For instance, if you need to view content from the United Kingdom or the United States, simply connect to a UK or US VPN server. The speed of the internet won’t be affected in any way since there are plenty of UK and US VPN servers to choose from.
Inspiring success stories
We have already mentioned Skype at the beginning of the article, but that’s not the only success story from the Baltics. For instance, Bolt was founded in Estonia in 2013 and is a direct competitor of Uber. Also hailing from Estonia is TransferWise, a peer-to-peer money transfer app used for international payments.
Founded in 2008, Vinted is one of the leading marketplaces for second-hand clothes, and this startup has a unicorn status. Let’s not forget that Estonia has the most unicorns per capita on the old continent. Therefore, it’s clear why entrepreneurs are flocking to this part of Europe. The startup community is very welcoming, and connecting with people is not difficult.
Additionally, the Baltics are considered a condensed startup ecosystem where everyone knows each other. Even the newcomers can find their footing relatively quickly. Registering and launching a startup here is straightforward, thanks to the entrepreneur-friendly laws in the Baltic countries.
The availability of e-residency
Estonia was the first country in the world to offer e-residency. Since 2014, more countries, including Lithuania, have followed their example. So, what is e-residency? It is a government-issued digital ID that allows anyone, regardless of their location, to register and run an online business. E-residency gives access to Estonia’s digital infrastructure, which includes administrative services. Therefore, e-residents can sign documents online and run their business remotely.
Additionally, individuals can open bank accounts in Estonia and pay taxes online. Transactions are transparent thanks to blockchain technology. More than 21,000 companies have been registered by e-residents in Estonia alone since the launch of e-residency.
A Few Final Words
Having all these reasons in mind, it’s no surprise that the Baltic region became a hub for startups. The Baltic countries’ entrepreneur-friendly laws, financial support, and low crime rates make it easier for startups to thrive and grow. So, if you are an entrepreneur with a revolutionary idea, the Baltics should be on your list of potential locations to launch your startup.