A survey of 51 investment funds across Europe indicates that VC investments in Baltic startups could increase by up to 60% in 2024. This means that after a slow investment year that was 2023, VC investments in the Baltic region could return to 2022 levels when Baltic startups raised 2,164 billion euros in total.
The survey was conducted by TechChill, the leading startup event in the Baltics. Every year, the conference attracts tech investors from across the world interested in the region's startups. Amidst the current economic and geopolitical challenges, TechChill organizers surveyed VC fund representatives in their database to gauge their sentiments regarding the Baltic region.
The survey found that 80% of VC funds that disclosed their investment plans for 2024 aim to either maintain or boost their investments in Baltic startups compared to 2023. On average, the expected increase in the volume of investments this year is around 60%.
“Baltic Startups are expressing an impressive degree of seriousness and sense of urgency, making them effective and, most importantly, resilient in an ever-changing and increasingly precarious world. This makes this region interesting to us as investors, and we're looking forward to making our first investment in a Baltic startup this year.” Jannic Meyer, Investment Associate at Project A
Last year saw a drop in VC investments in the Baltic region. Those funds that reduced their investments in the region in 2023 cited fewer “right-fit” startups as the most common reason. Only two said it was due to geopolitical uncertainties in the region after Russia's invasion of Ukraine. At the same time, they said they plan on increasing their investments again this year.
"In the survey, investors confirm their desire to invest in the region as much or more than last year. That's really great news for the region's startups. On top of this, the local VC ecosystem remains active, too. For example, the Lithuanian VC fund Practica Capital recently attracted 80 million euros that they plan to invest in Baltic startups, exclusively. Meanwhile, ALTUM, the Latvian state-owned capital company, will also grant 60 million euros to be invested in local startups. All this indicates that Baltic startups stand great chances of attracting investments this year." Annija Mežgaile, CEO of TechChill
Altogether, 51 investment funds submitted answers to the survey questions. Of those, 46 have already invested in Baltic startups or plan to do so this year. The majority of respondents were from Europe – Scandinavia, UK, the Czech Republic, the Netherlands, Hungary, as well as the Baltics.
The 13th edition of TechChill will be held on April 17-19 in Hanzas Perons in Riga, Latvia. This year, the event expects over 2,300 attendees, including 200+ investment fund representatives from all over Europe. As usual, other attendees include startups, local entrepreneurs, innovators, and tech enthusiasts.