Since 2018, Lithuania’s capital city Vilnius has been marketing itself as “the G-Spot of Europe”. Nobody knows where it is, but once you find it, it is amazing!

Well, if you’ve ever had the chance to walk in the magical streets of this country’s capital and met the locals, you would understand why their marketing slogan works. 

This is a town for tourists, and they have had a growing number of founders and foreign investors join them as a business hub. 

Their start-up ecosystem, which did not even exist ten years ago, is currently one of the highest-ranking in the start-up world. This country is currently in 11th place in terms of ease of doing business and 2nd place in terms of procedures for business start-ups.

This is an excellent country for investments. 

Additionally, according to the 2020/2021 report of the 2013-2019 analysis that Dealroom.com did for Tech Cities of the future, Lithuania ranks at number 10 in FDI performance and Cost-effective categories.

This is music to any investor’s ears. There is a clear strategy in Lithuania to attract tech start-ups, emphasizing on open data policy, business-friendly regulations, and governmental support for investors.

As a result, there has been an increasing number of start-ups all across the country, especially in Kaunas and Vilnius cities, which boast some of the most vibrant start-up ecosystems in the entire country.

As of April 2020, Lithuania grew the number of start-up businesses by 1,021 and exceeded Latvia with 352, and Estonia with 1,071.

The start-up scene is the main focus for any investor. This is dominated by companies that deal in health, financial technologies, logistics, the mobility and game industry, and business management. 

It is placed at number four by the Global Fintech Index of 2020. 

Lithuania is slowly becoming the European Leader in Fintech hubs.

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A Little Bit of History

Lithuania is part of the Baltic group of countries that is an inter-governmental assembly and council of ministers. These countries are generally referred to by shorthand as “the Baltic States” and include Latvia, Estonia, and Lithuania. 

When the First World War ended, the countries gained their independence from the Russian Empire. These specific territories had been ruled by Russia until they gained sovereignty.

Lithuania is the most southern of these countries and the least known of all three Baltic countries. 

It is, however, extremely friendly for those who know it, and its brave shouts and significant protests over the soviet rule were the catalysts that led to the liberation from the soviet in the Baltics. 

The country has a beautiful capital city – Vilnius, with a skyline dotted with churches and cobbled streets leading to little courtyards that boast wonderful buildings.

By simply wandering around and taking in the sights and sounds of Lithuania, you will have an absolute pleasure. In the last few years, most of its buildings have been renovated, and they now stand proud and tall, but still, some remain as they have been in the last one hundred years.

They slowly wait to be restored to their original glory. 

Lithuania also has some lovely countryside that features colorful lakes, wooden houses, rivers, and lakes perfect for canoeing. The coastline is miles and miles of white sandy beaches.

How Did it all Start?

Around 2000 BC, some Lithuanian ancestors called “The Balts” settled in the country. Later on, Vilnius was made into the capital by Gediminas – The Grand Duke. 

Lithuania has very close ties with Poland as both of them had the Grand Duke Jogaila as their ruler. However, in 1410 they managed to defeat the Teutonic Knights together, as they had been growing as a threat in both of these countries.

They collaborated again in 1569 to form a Commonwealth that was called I Rzeczpospolita. This meant that they could not make any outside alliances without first consulting each other.

Russia then captured Vilnius in 1654, and Prussia, Russia, and Austria invaded some parts of the union. 

This went on till 1795, when Lithuania was taken over entirely by Russia. 1915 saw Germans occupy Lithuania, but in 1918, this country became independent. 

However, this was not done correctly until 1991 because the Soviet Union annexed it in 1940. This resulted in deportations and mass executions for the Lithuanian people.

In September 1991, the country became independent and joined the UN. There were, however, still many Russian soldiers that lived there till 1993.

Things that Lithuanians are most proud of

Lithuania is small, but its people are very proud. They have unique traditions and a vibrant history.

When visiting the country, it is essential to understand what the residents consider authentic in this part of the Baltic. Here are a few things they are most proud of; 

-Basketball

This is almost the second (if not first) religion in the country. Basketball is more than a game in this nation, and ever since they won the gold medal in the 1937 EuroBasket, the game has been the number one sport in the country and has stayed on top ever since.

When you visit, you will see kids all over playing basketball. Even though it has a population that is less than three million people, they win medals constantly in events such as the Olympic Games and FIBA World Championships.

-The Lithuanian Language

The Language in Lithuania is one of the oldest languages spoken worldwide. It is related to Sanskrit, and there is enough evidence for this. Now, although only three million people speak it, and no one else in the world understands a single word, the Lithuanians are extremely proud of their beautiful and unique language.

-Easy and Free Internet

In Lithuania, you will not have to suffer looking for a reliable internet connection or Wi-Fi while at the bar or hotel. 

The internet in this country is reliable, cheap, fast, and accessible in the whole country. The locals are incredibly proud of this and the fact that they are such a small country that has managed to become an incredible internet provider. 

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-Food

The unique and authentic food in the country is probably not available anywhere else. Food such as ceplinai and beetroot soup are some of the most delicious for Lithuanians. If you want to earn some respect from the locals, just tell them how much you love their traditional cuisine.

Beer

If you love having a good time and some good quality beer, Lithuania will not disappoint you. It’s no secret that Lithuanians enjoy their drink, and they sure do have a good selection of local beers for you to choose from.

This is an excellent incentive for those who just want to relax and enjoy this country.

Amber

Some of the best quality amber-based jewellery comes from Lithuania. They have the best quality in the world, and it is found in the Baltic Sea.

The locals will give gifts that are made of these fossilized tree resins to their friends. They are extremely proud of this and even name most of their children after it. The girls are called Gintare, while the boys are called Gintaras. 

The Lithuanian Climate

Lithuania is a flat country that overlooks the Baltic Sea and has a semi-continental climate. It, however, has some very cold winters and moderately mild rainy summers. 

The coastline usually has average temperatures that go below freezing in the months of January and February and can get to around 18°C or 64 °F. The coast usually is rainier than the interior of the country.

Why Lithuania?

So, why would a foreign investor choose Lithuania for their next investment opportunity?

There are many reasons. Other than Lithuania’s efforts to create favorable regulations for foreign start-ups, the government has also played a very crucial role for the local start-ups by securing their funding from the EU Funds.

Other than this, the Government offers financial support to the SMEs through INVEGA, which is their financial entity.

Lithuania has plenty of local investors who have had a proven record for their notable activities. One of the critical organizations by investors is the Lithuanian Business Angel Network. 

It was founded in 2018, and its primary purpose was to support and strengthen start-up ecosystems and enable funding opportunities. 

By 2016, foreign investors had an extremely healthy appetite for Lithuania’s tech space, and since then, it has only increased with investors from the US and Europe.

Reasons Why You Should Invest in Lithuania

-Lithuania is developing extremely fast, and it is the fastest developing country in the EU. In fact, in the period between 2015 and 2019, their GDP was 3.2% per annum.

-Lithuania is part of the Schengen countries and the European Union. It is also a member of the Eurozone as well.

-It has a tax environment that is considered one of the most favorable for creating business start-ups.

-In fact, of all the OECD countries, Lithuania stands in third position in terms of the most attractive for corporate taxes and also has the lowest average salary of the Baltic Countries, which is a great benefit to the foreigners.

-The internet in Lithuania is cheap and one of the fastest and most reliable worldwide. The Lithuanian’s usually employ new and innovative technologies for their internet, and it was the first EU nation and one of the first countries in the world to use the 4G internet.

-It is a particularly urban and evenly developed country with excellent infrastructure. The Lithuanian roads are some of the best in the whole of Eastern Europe. 

-Its network with four-laned highways connects Kaunas, Vilnius, Panevėžys Palanga, and Klaipėda, and the smaller towns are also accessible by using the well-kept Asphalt roads.

All the roads are free to use, and car rental is available at the airports. 

The larger Lithuanian cities can easily be accessed using the extensive public transport system that features trolleybuses and busses.

-An educated workforce – Lithuania has the highest educational level population in the European Union. 92% of the population has a higher education or secondary education. 

In the Marijampole region, there are many qualified specialists in the food industry, agriculture, technology, and engineering. 

What About Coronavirus?

Well, it’s good to mention that the coronavirus crisis that was busy wreaking havoc worldwide has not affected the start-up ecosystem in Lithuania quite as much as it did the rest of Europe. 

This is excellent news, as companies operating in e-commerce, educational technologies, telemedicine, cyber-security, home delivery of goods, and other innovative ideas saw lots of business expansion opportunities.

In fact, sales for the Lithuanian start-ups grew by 55% in the first part of 2020, compared to the exact period the previous year.

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