€246 million invested in Estonian startups in the first half of 2018

During the first six months of 2018, €245.6 million has been invested in Estonian startups – just €26.5 million shy of the total investments of 2017.

According to Startup Estonia, 15 investments in Estonian startups have taken place in the first half of the year, making the average investment size €16.3 million. “Last yeah, the average deal size was 6.8 million euros and the years before it has been €1-2.5 million,” the organisation said, adding that according to experts, the country’s startups can expect up to €350 million in investments by the end of 2018.

Leading is Taxify’s €150 million investment round, led by the German automotive giant, Daimler. The company has seen tremendous growth, with currently having over 500,000 drivers and more than 10 million users in countries around the world.

Pipedrive secured a €42,9 million investment round, co-led by Insight Venture Partners and Bessemer Venture Partners, with the goal to expand its product, develop its business globally and potentially make acquisitions in the CRM space.

Other notable companies to have received investments are Starship (€21.4 million), Realeyes (€13.5 million) and Veriff (€6.6 million).

Tech ecosystem well-established

“The fact that the investments are flowing into so many very different companies shows that Estonian tech ecosystem is well-established and not relying on a few success stories only,” Allan Martinson, a long-term startup entrepreneur and investor, said in a statement.

The first half of 2018 has also seen 388 new employees added to the headcount of around 550 Estonian startups, making the total headcount of Estonian startups 3,369 in their Estonian offices. Compared with the first half of last year, this means a 27% growth, Startup Estonia said.

In 2017, the Estonian startups generated €275 million in annual turnover, and this year 55% of it has already been reached. The second part of the year last year was somewhat more active than the first, so when comparing with the first half-year of 2017, we are seeing an 11% growth, the organisation added.

Startup Estonia is a governmental initiative financed by the European Regional Development Fund, aimed at supercharging the Estonian startup ecosystem.


Cover: The co-working hub Lift99 in Tallinn’s Telliskivi Creative City has the logos of the most successful Estonian startups, colloquially known as #estonianmafia, painted on the wall (the image is illustrative).

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About the author: Sten Hankewitz

Sten Hankewitz is a lifelong journalist and Deputy Editor at Estonian World. Having lived in Estonia, Spain, the UK and all around the US, he now resides in Chicago, IL. He loves to write and besides working at Estonian World and doing some occasional blogging, he writes books and contributes to other outlets in Estonia, Israel and elsewhere. He has strong convictions and he shows them unashamedly. You can follow him on Twitter, like his page on Facebook or check out his personal blog. You can write to Sten at sten@estonianworld.com.