The total turnover of Estonian start-ups increased to €1.5 billion in the three quarters of 2022. This is a 64% increase compared to the same period last year.
The Estonian start-up also attracted a record amount of investments totaling €1.2 billion, including 40 deals exceeding €1 million.
Last year, the start-up sector generated sales of 1.4 billion euros. This means he surpassed last year’s results in his first nine months of the year. At the end of the third quarter of 2021, the startup’s total turnover stood at his 927 million euros, an increase of 64%.
Eve Peeterson, manager of Startup Estonia, said the world is in a difficult situation, but Estonian startups continue to grow strongly.
Around 1,500 start-ups operating in Estonia
“Estonia has a very good reputation internationally and the solid foundation built over the years in difficult times works in our favor. The experience of our start-up entrepreneurs, who have repeatedly proven to investors, customers and employees that they can turn market conditions in their favor, undoubtedly also plays a role.”
Bolt generated the highest revenue of €775.3 million in the first three quarters of the year, followed by Veriff with €50.5 million, Swappie with €47.6 million, Comodule with €27.8 million and Starship Technologies with €27.8 million. It was 24.6 million euros.
Business turnover data is data published quarterly by the Tax Commission based on VAT returns filed by businesses. As such, these data cannot be compared with the data contained in the taxable person’s annual report. However, they provide the best possible current overview of the current state and growth of the sector.
According to the database maintained by Startup Estonia, there are 1,446 startups in Estonia and 418 or 29% of the startups in the database have been in operation for 5 years or more.
€1.2 billion invested in three quarters
According to the Tax and Customs Board, the start-ups paid a total of €134 million in labor taxes to the state. This corresponds to an increase of 48%. At the same time last year, the startup paid 90.5 million euros in labor taxes to the state.
Estonian start-ups attracted €1.2 billion in investment in the third quarter of this year, with a total of 61 deals made with investors. The average transaction value was 19.3 million euros for him. There were a total of 40 investments exceeding €1 million.
In the same period a year ago, the amount of investment involved was €870 million, 66 trades were executed, with an average deal size of €13.2 million. There were 34 investments above €1 million.
Peeterson added that both Estonian and international investors have strong faith in Estonian startups.
Many Estonian start-ups are attracting increasingly large investments
“This is evidenced by the total volume of deals, and statistics show that in addition to the flagships of the Estonian startup sector, many other Estonian startups are also attracting increasingly large investments. ‘ she said.
The largest investments in Q3 2022 were Ready Player Me with €55.1 million, Monese with €35 million, Lightyear with €25 million, Klaus with €12 million and Jobbatical with €11.6 million.
Startup Estonia brings together and supports Estonian startup entrepreneurs. In addition to the information of the startup, we will collect data in cooperation with the startup, based on the data of the Estonian tax and customs authorities and the statistics office. The Startup Estonia program is carried out by the Kredex Foundation and the program’s research incubator activities are carried out by Smartcap.
The Startup Estonia program is funded by the resources of the European Regional Development Fund.