Lithuanian Startup Survey

1. Lithuanian Startup Survey.
Key facts you should know
According to 2019 data. Performed by: “Vilmorus”

2. Startups
• Close to half (48%) of the startup founders are engaged in startup development up to 3 years, another
half (51%) over 3 years. For most of the respondents (62%), this is the first startup they are creating.
In most cases (71%), the startup founder’s team consists of 1-3 people. In most cases (64%), the
startup founder’s team doesn‘t have any women. The average size of the startup team is 5-10 people
(46%).
• The absolute majority (95%) have registered their startups in Lithuania (the ones that didn‘t register
usually state that they are still developing their product).
• The majority (58%) of the startups don‘t have and don‘t plan to have employees from non-EU
countries, 15% have such employees, 19% are planning to have, 7% would like to, but find it difficult to
recruit. 36% of the startups find it difficult to recruit people from outside the EU and 7% who consider it
easy.

3. Investments and use of infrastructure
• 29% of startups aren‘t looking for investments, 28% are currently looking for it but have not yet
received it (57% have not received investments yet). The most frequently reported amount of a
received investment is 101-500 thousand Eur. (12%), 17% received less and 13% received more than
this.
• Close to one third (30%) of the respondents weren‘t able to indicate their startup’s value. The
maximum stated startup value is over 1 million Eur. (27%), less than 1 million Eur. (43%). It was most
commonly indicated that the funds consists of the shareholders' contributions/personal funds – 24%,
Lithuanian business Angels – 20%, syndicated investment from several sources – 19%, accelerator
funds – 18%. Those who are currently looking for investments usually plan to attract 101-500 thousand
Eur. of investments which is 37%.
• The majority (59%) of the startups indicated that they didn‘t use the infrastructure which is created for
the startups. And those who used it, often mentioned science and technology parks. Those who don‘t
use startup infrastructure indicated that there was no need for it (56%) and 25% said they weren‘t
aware of such infrastructure.

4. Acceleration and use of aid measures
•Most of the startups (44%) didn‘t participate and don‘t plan to participate in accelerator
programs. 28% of the startups participated in such programs in Lithuania and 11% are
planning to participate (39% in total). 17% of the startups participated in such programs
abroad and 8% are planning to participate also (25% in total).
•55% of the startups haven‘t used state’s aid measures. Most of the startups used the help
of MITA (Agency for Science, Innovation and Technology) - 35%. Those who didn‘t use
state’s aid measures usually indicated that they didn‘t need it (30%), that the application
process was too complicated (27%), and that they didn‘t know about this possibility (25%).

5. •42% of the startups indicated that their development is hindered by the lack of
finances, less often - business regulation (26%) and lack of talent (22%).
•More than half (58%) favour the current startup ecosystem and only 8% think of
it negatively. The regulation of startup activities is evaluated worse: 27% favor
this regulation, 23% dislike it, and most of them (29%), are neutral about it.
•40% of the startups indicated that Lithuania lacked financial support and state
aid - 30%. Three frequently mentioned state aid measures that would
encourage the startups: reduction of “Sodra” - 29%, one-time startup grant -
29%, reduction of corporation tax - 27%.
Ecosystem and business environment
assessments

6. How many years have you been creating your startup?
Close to a half (48%) of the startup founders are engaged in startup creation up to 3 years, half
(51%) over 3 years.
1%
33%
18%
37%
11%
Didn't specify
More than 5 years
3-5 years
1-3 years
Up to 1 year

7. Before you started creating your current startup, how many
startups have you created previously?
*Other: four (1.7%); five (2.1%); ten (1.7%).
For most of the respondents (62%), this is the first startup
they are creating.
1%
6%
9%
11%
12%
62%
Didn't specify
Other
Three
Two
One
The current startup is my first

8. How many founders are in your startup team?
*Other: five (7,1%); six (1,7%); seven (2,8%); eight (1,1%); ten and more (1,7%).
In most cases (71%), the startup founder’s team consists of 1-3 people.
1%
14%
14%
23%
23%
25%
Didn't specify
Other
Four
Three
Two
One

9. Are there any women in you startup team?
*Other: three (3,2%); five (0,6%); six (0,6%).
In most cases (64%), the startup founder’s team doesn‘t have any women.
4%
6%
25%
64%
Other
Two
One
None

10. Is your startup currently registered in Lithuania as a company?
The majority (95%) have registered their startup as a company
in Lithuania.
4%
1%
95%
No, I haven't registered it yet
No, I registered it abroad
Yes, I registered it in Lithuania

11. Why did you register your startup as a company abroad?
Answers of respondents who registered their company
abroad (N = 2)
Because of foreign countrie‘s legal framework N=1
Shortage of skilled workers N=1

12. Why haven't you registered your startup as a company yet?
(Answered by respondents who didn‘t register their company (N = 8))
Most of them aren‘t registered yet because they are still developing their product.
13%
13%
13%
63%
Another reason: temporary suspension of
activities due to decree
The tax environment in Lithuania is not
favorable
The legal environment in Lithuania is not
favorable
There is no need - we are still developing
our product

13. How many people do you currently have on your entire startup
team?
The average startup team size is 5-10 people (46%), the team has fewer
employees - 36%, and the team has more employees - 18%.
1%
4%
14%
46%
25%
11%
Didn't specify
More than 51
11-50
5-10
1-4
1

14. Did your startup have or had employees from outside the
European Union?
The majority (58%) of the startups don‘t have and don‘t plan to have employees from non-EU
countries, 15% have such employees, 19% plan to have, 7% would like to but find it difficult to
recruit.
1%
7%
58%
19%
15%
Didn't specify
We would like to but recruitment procedures
are too complicated
We don't have and don't plan to recruit
workers from outside the European Union
We don't have but we are planning to recruit
workers from outside the European Union
We had or have workers from countries
outside the European Union

15. How do you evaluate the recruitment procedures for workers
from outside the European Union?
(Answered by respondents who had, have or are planning to have employees from outside the EU (N = 62))
36% of the startups find it difficult to recruit people from outside the EU and
7% who consider it easy. Another 21% opted for a neutral answer and 37%
didn‘t have an opinion about it.
37%
5%
2%
21%
21%
15%
Don't have an opinion
Completely simple
Simple
Neither complicated nor simple
Complicated
Very complicated

16. How much money did you attract from investors during the
startup period?
29% of startups are not looking for an investment, 28% are currently looking for it but have not yet
received it (57% have not received investments yet). The most frequently reported amount of a received
investment is 101-500 thousand Eur (12%), 17% got less and 13% received more than this.
2%
29%
7%
6%
12%
6%
11%
28%
Didn't specify
We didn't seek to attract investments and aren't
currently seeking it
Over 1 million Eur.
From 501 thousand to 1million Eur.
From 101 to 500 thousand Eur.
From 51 to 100 thousand Eur.
Up to 50 thousant Eur.
Our startup hasn't attracted any investments yet
but we are seeking for it

17. According to the latest investment you attracted, what is the
value of your startup?
Close to one third (30%) of the respondents weren‘t able to indicate their startup’s value. The
maximum stated startup value is over 1 million Eur. (27%), less than 1 million Eur. (43%).
(Answered by respondents who attracted investments (N = 74))
30%
27%
10%
15%
8%
10%
Didn't specify
Over 1 million Eur.
From 501 thousand to 1 million Eur.
From 101 to 500 thousand Eur.
From 51 to 100 thousand Eur.
Up to 50 thousand Eur.

18. From what sources has your startup already attracted
investments?(Answered by respondents who attracted investments (N = 74))
*Other: from private capital / personal funds / shareholder contributions (24.3%); EU Support
Programs / EU Structural Funds (2.7%); ICO (1.4%).
It was most common indicated that the funds consists of the shareholders' contributions/personal funds –
24%, Lithuanian business Angels – 20%, syndicated investment from several sources – 19%, accelerator
funds – 18%.
3%
28%
11%
12%
15%
18%
19%
20%
Didn't specify
Other sources
Foreign business angels
Foreign venture capital fund
Lithuanian venture capital fund
Accelerator funds
Syndicated investment from multiple sources
Lithuanian business angel (-s)

19. How much are you currently seeking or are planning to attract in
the near future?
Most often they are planning to attract 101-500 thousand Eur. (37%).
10%
17%
11%
37%
8%
17%
Didn't specify
Over 1 million Eur.
From 501 thousand to 1 million Eur.
From 101 to 500 thousand Eur.
From 51 to 100 thousand Eur.
Up to 50 thousand Eur.

20. Have you used startup infrastructure in Lithuania?
*Other: MITA (1.7%); university / institute (1.7%); participation in events / Kaunas Startups 2018 (1.1%). Other
infrastructures were mentioned less frequently.
The majority (59%) of the startups indicated that they haven‘t used the infrastructure which is created for the
startups. And those who used it, often mentioned science and technology parks, which is 29% from 71% who
are using the infrastructure.
1%
59%
7%
17%
29%
Didn't specify
Haven't used the infrastructure for startups
Other infrastructure
We used collaboration spaces (co-working
spaces, hubs)
We used science and technology parks,
valleys

21. Why haven’t you used the startup infrastructure in Lithuania?
(Answered by respondents who said they don‘t use startup infrastructure (N = 106))
*Other: time limit / was away (1.9%). Other reasons were mentioned less frequently.
Those who don‘t use startup infrastructure indicated that there was no need for it (56%), 25% said
they weren‘t aware of such infrastructure.
1%
6%
16%
25%
56%
Didn't specify
Other reason
This infrastructure didn't provide us with
relevant services
We didn't know anything about this
infrastructure
We didn't need it

22. Has your startup participated in an accelerator program?
Most of the startups (44%) haven‘t participated and aren‘t planning to participate in accelerator programs.
28% of the startups participated in such programs in Lithuania and 11% are planning to participate (39% in
total). 17% of the startups participated in such programs abroad and 8% are planning to participate (25% in
total).
1%
2%
44%
8%
11%
17%
28%
Didn't specify
We applied but we weren't selected
We haven't participated and aren't planning to participate in any
accelerator programs
We are planning to participate in an accelerator program abroad
We are planning to participate in an accelerator program in
Lithuania
We participated in an accelerator program abroad
We participated in an accelerator program in Lithuania

23. Has your startup benefited from at least one of the following state
aid measures?
*Other: INVEGA (0.6%); Kaunas startups (0.6%); SUR (0.6%); student recruitment (0.6%);
technological development project (0.6%).
55% of the startups haven‘t used state aid measures. Most of the startups used the help of MITA
(Agency for Science, Innovation and Technology) - 35%.
1%
55%
3%
16%
35%
Didn't specify
Haven't used any state aid measures
Other aid measures
LVPA aid measures (InoConnect, Intellect, New
Opportunities, etc.)
MITA aid measures (InnoVouchers, InnoStart,
InnoPatent)

24. Why haven’t you used state aid measures?
(Answered by respondents who say they don‘t use state aid measures (N = 99))
* Other: haven’t yet / are planning to apply / waiting for reply (6.1%); not eligible / no aid (4,0%); InnoStart -
money comes too late (1.0%).
Those who didn‘t use state aid measures usually indicated that they didn‘t need it (30%), that the
application process was too complicated (27%), and that they didn‘t know about this possibility (25%).
3%
11%
8%
25%
27%
30%
Didn't specify
Other reason
We have applied but no help...
We didn't know such aid measures existed
The application process is too complicated
The existing measures aren't relevant

25. What makes it difficult for your startup to develop?
*Other: Taxes / tax environment (4.9%); the market is too small (4.3%); problems in business sector / production capacity (1.7%);
consumer attitude (1.7%); competition (1.1%); lack of time (1.1%). Other reasons were mentioned less frequently.
42% of the startups indicated that their development is hindered by the lack of finances, less often -
business regulation (26%) and lack of talent (22%).
16%
6%
8%
15%
22%
26%
42%
Other hinders
Insufficient technological capacity
Small startup ecosystem
There are no hinders
Lack of talent
Business regulation
Lack of finances

26. How do you currently evaluate the startup ecosystem in
Lithuania?
More than a half (58%) favor the current startup ecosystem and only 8% think of it negatively.
11%
7%
51%
23%
6%
2%
Don't have an opinion
Very positively
Positively
Neither positively nor negatively
Negatively
Very negatively

27. How do you evaluate the regulation of startup activities in
Lithuania?
27% favor this regulation, 23% dislike it, and most of them (29%), are neutral about it.
20%
2%
25%
29%
20%
3%
Don't have an opinion
Very positively
Positively
Neither positively nor negatively
Negatively
Very negatively

28. What do the Lithuanian startup ecosystem lack at the moment?
40% of the startups indicated that Lithuania lacked financial support and state aid - 30%.
*Other: Experts / talents (3.5%); cooperation with those with experience (2.6%); less regulation / bureaucracy (2.1%); lower taxes (1.1%);
change of attitude towards startups (1.1%). Other things were mentioned less frequently.
10%
13%
2%
7%
16%
17%
18%
30%
40%
Didn't specify
Other
More cooperation spaces (co-working
spaces, hubs)
Simpler procedures for employing third-
country nationals
More accelerator programs
More venture capital funds
A wider network of business angels
More active aid for the startups from the
state institutions
Financial support for business creation

29. What new state support measures would encourage faster
growth of the startup ecosystem?
Three state support measures were frequently mentioned that would encourage the startups: “Sodra”
reduction - 29%, one-time startup grant - 29%, corporation tax reduction - 27%.
*Other: tax reduction (2.3%); tax deferral (1.7%); subsidies / loans (1.1%). Other support measures were mentioned even less frequently.
15%
8%
8%
9%
17%
22%
27%
29%
29%
Didn't specify
Other measures
Additional accelerator programs
Reduction of compulsory health insurance
contribution
Temporary provision of employment (free of charge)
Reduction of personal income tax
Reduction of corporation tax
One-time government grant for the startup
Reduction of state social insurance contributions

30. How do you currently evaluate the startup ecosystem in
Lithuania?
More than a half (58%) favour the current startup ecosystem and only 8% think of it negatively.
11%
7%
51%
23%
6%
2%
Don't have an opinion
Very positively
Positively
Neither positively nor negatively
Negatively
Very negatively

31. Let’s communicate
info@startuplithuania.com