Talking about startups in the European landscape, many names would come to mind in an attempt to identify a promised and fertile land for the sector. If the choice were based, for example, on the number of unicorn startups, it would certainly be natural to crown the United Kingdom (49 in 2023), Germany (30 in 2023), and France (26 in 2023). Considering the most popular locations for startups in the top 5 in Europe, according to the "Startup Heatmap Europe 2023" research by DEEP, London (1st), Berlin (2nd), and Barcelona (3rd) stand out, followed by Amsterdam (4th) and Paris (5th). In short, no Lithuanian city or Baltic country appears on these lists.

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Yet, what is happening in the startup sector in these countries, especially in Vilnius, the capital of Lithuania, is incredible. By the end of 2024, the opening of TechZity, the largest startup incubator in Europe, is planned in the center of Vilnius. And it won't be located in just any area: it will be situated in what locals call "Vilnius Valley," the same area where two of the country's three unicorns, Vinted and Nord VPN, are based.

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The TechZity incubator will rise from the ashes of a former Soviet and post-Soviet textile factory with an incredible size of 50,000 square meters, converted into the largest startup incubator in Europe (surpassing the previous record of Paris' Station F with its 34,000 square meters and 3,000 workstations for startups). There are plans for spacious coworking areas, meeting rooms, outdoor spaces, and green areas, all available to startups operating in any sector, from fintech to biotechnology, agritech to fashion.

 

It's no coincidence that TechZity is opening in Lithuania, dubbed by Corriere della Sera as the "new queen of startups." Lithuania, and the Baltic countries in general (Estonia, Latvia, Lithuania), are strongly focusing on economic support policies for young people to create new tech and startup businesses in the digital economy. This is not only with the intention of retaining young Lithuanian talents in the country (Italy had a negative migration balance of 65,000 units in 2020, mostly with a high level of education) but also to make the Baltic countries the European reference point for the startup sector.

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And this strategy seems to be working. Just in Lithuania, there are over 800 startups (1 for every 3,500 inhabitants compared to Italy's 1 for every 4,078 inhabitants) and 3 unicorns (NORD VPN, Vinted, and Baltic Classifieds Group) compared to Italy's 2 (Scalapay and Satispay), despite Lithuania having a population over 20 times smaller.

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The secret, besides a generally young population, lies in tax incentives for investments, excellent universities for digital and tech-related themes, especially in youth entrepreneurship (such as Vilnius University with 24,000+ students), and a great inclination for work and risk-taking among the Lithuanians.

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The future ambitions of Lithuania are also significant: the Lithuanian Minister of Economy Ausrine Armonaite declares to Corriere journalist Cecilia Mussi that, according to predictions, "by 2030, 5% of Lithuania's GDP will come from startups." These statements align with the numbers, showing a +22% increase in new companies born as startups only in Lithuania in 2022.

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And if, as said by Darius Zakaitis, the so-called "father of Lithuanian startups" and founder of TechZity, "the startup movement is the most beautiful thing that happened to Lithuania in the last 10 years," Lithuania certainly has a lot to teach Italy about building a fertile ecosystem for the birth and development of successful startups.