By Mark McSherry
Estonian startup companies generated turnover of €2.7 billion in the first nine months of 2024 — 10% more than in the same period of 2023.
That’s according to government organization Startup Estonia.
“Notably, the top 10 companies contributed 56% of the sector’s total turnover during the first three quarters of 2024, underscoring the concentrated strength of leading players in the startup ecosystem,” said Startup Estonia.
“This strong growth stands in contrast to the broader Estonian economy. While the startup sector saw a 10% increase in turnover during the first three quarters of 2024, the total turnover of all Estonian taxable persons decreased by 2.5% over the same period.”
The largest turnover was generated by mobility unicorn Bolt with €983.7 million, followed by sales management customer relationship management (CRM) firm Pipedrive with €203 million, online identity verification unicorn Veriff with €76.7 million, IT and technology company Yolo with €49.1 million, and gaming technology firm Playtech with €41.7 million.
Startup Estonia added: “Statistics from the Estonian Tax and Customs Board reveal that as of the end of the third quarter of 2024, Estonian startup sector companies employed 14,267 people locally.
“The workforce continues to undergo a slight decrease, declining by 3% compared to the end of the third quarter of 2023 when the employee count stood at 14,687.
“Of the total number of people employed in the sector at the end of Q3 2024, 45% were employed by the top 10 startup sector companies in Estonia.
“The leading employers include Wise with 2028 employees, followed by Bolt with 1321 employees, Playtech with 653 employees, Yolo with 553 employees, and Swappie with 435 employees …”
Startup Estonia said that according to the crowdsourced table, a total of €302.7 million was invested in startup sector companies during the first three quarters of 2024, marking a 52% increase compared to the same period in 2023.
The largest investments during the first three quarters of 2024 were made into autonomous delivery vehicle developer Starship Technologies (€90m), renewable energy equipment maker Stargate Hydrogen (€42m), hydrogen technology developer Elcogen (€30m), banking platform Tuum (€25m), negotiations startup Pactum (€18.4m), and cybersecurity startup Bot Guard (€12m).
“In the third quarter, we witnessed several acquisitions within the ecosystem, reflecting continued consolidation and growth across the sector,” said Startup Estonia.
“In July, Germany’s digital tax filing platform, Taxfix, acquired Estonian-founded TaxScouts. In August, Swedish banking group Swedbank AB acquired the Tallinn-based fintech company Paywerk.
“In September, Wisnio joined forces with the Assessio Group. These acquisitions highlight the ongoing dynamism in the Estonian startup and fintech landscape, with international companies recognizing the value and potential of local talent and innovation …
“Despite a slight drop in employment, the Estonian startup sector has continued to show resilience and growth where it counts — turnover is up by 10%, and investment levels have soared.
“DeepTech is doing its thing by quietly changing the world by stepping up with some impressive numbers of its own.
“The broader economic context may be less rosy, but startups are proving their value, contributing heavily to employment taxes and innovation alike.
“As we move into the final quarter of the year, it’s clear that the Estonian startup ecosystem remains dynamic, even in the face of challenges.”