Startup ventures in Estonia raise approximately €150 million in financing during the first three quarters of the year
Estonian Deep Tech Startups See Significant Growth in Q3 2023
By the third quarter of this year, Estonia's deep tech startup sector has witnessed substantial investments and revenue growth. The sector has already surpassed €100 million in revenue, indicating a strong trajectory for further growth.
According to Startup Estonia, deep tech startups in Estonia secured €147.3 million in 45 investment deals between January and July 2023, with an average deal size of around €3.3 million. Nearly half of these deals went to deep tech startups, raising a total of €34.4 million in 17 ventures.
One of the year's largest investments was made by Efenco with €12.3 million, followed by Roofit.solar with €6.45 million, Vok Bikes with €3.8 million, Elmo with €2.6 million, and Value.Space with €2.1 million. However, it's worth noting that the amounts of four deals made in 2023 remain undisclosed.
Compared to the same period last year, the number of investment deals has decreased, due in part to the significant influence of Bolt's €628 million mega investment in 2022. In H1 2023, startups secured 59 deals, with 39 of them exceeding one million euros.
"There's been a decrease in investment volumes," said Eve Peeterson, the head of Startup Estonia. "Investors are cautious, and decision-making processes are slower and more thorough. On a positive note, there's a growing interest in the innovation sector, with increasing investments in deep tech startups, which are expected to make significant developments and breakthroughs in the coming years."
Thedeep tech sector encompasses a range of businesses, including companies developing autonomous vehicles (Auve Tech) and AI-based negotiation platforms (Pactum AI), as well as research and development companies such as Gelatex Technologies, which specializes in nanofiber technology. Companies founded by Estonian female scientists, such as Value Space and Nanordica Medical, are also part of this sector.
Deep tech startups in Estonia currently employ over 1,500 people and generated a combined revenue of €117.5 million by Q3 2023—nearly a third more than the same period last year. These companies also paid a total of €23.3 million in labor taxes to the state, representing a 26% increase from the end of the third quarter last year.
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Enrichment Data:- The deep tech sector in Estonia is diversifying across various sectors, including energy, defense, and logistics, thanks to both public and private funding [1][5].- Milrem is one of the largest employers in the Estonian deep tech sector [1].- Stargate Hydrogen secured a significant investment of €11 million, highlighting the potential growth in hydrogen technology [1].- Elcogen received €5 million in funding, focusing on advanced fuel cell technology [1].- GaltTec secured €1 million for developing micro-tubular solid oxide fuel cells (mSOFCs) for portable energy solutions, showcasing innovation in energy technology [5].- Starship Technologies is a notable deep tech company in robotics and logistics [1].
- People working in Estonia's deep tech sector have seen an increase in employment, with over 1,500 people employed by Q3 2023, a nearly third more than the same period last year.
- The deep tech sector in Estonia has shown significant growth in finance, as these companies generated a combined revenue of €117.5 million by Q3 2023.
- Funding for Estonia's deep tech startups comes from a variety of sources, including investments in companies like Value Space and Nanordica Medical, founded by Estonian female scientists, and those focused on technology areas such as hydrogen (Stargate Hydrogen) and energy (Elcogen).
