What If the Ecosystem Isn’t Slowing - Just Getting Picky?

Ecosystem leaders weigh in on the early-stage gap and what needs to happen next?

Over the past decade, the total value of Lithuania’s startup ecosystem has grown from €419 million to €16 billion. This rapid expansion makes it the fastest-growing startup ecosystem in Central and Eastern Europe. In 2024 alone, early-stage venture capital investment reached €108 million, marking the second-highest annual total in the country’s history.

“Despite the growth numbers, we often hear in the ecosystem that there aren’t enough investable startups in Lithuania, so that got us curious if that reflects the full story. Because the talent is here. The ideas are here. But what’s perhaps missing is a stronger connection between early-stage teams and the people and tools that can help them grow,” says Lina Žemaitytė-Kirkman, Head of ROCKIT,  innovation hub and accelerator.

To better understand the root of this perceived disconnect between founders and investors, ROCKIT spoke with experts across the Lithuanian startup ecosystem, including investors, public sector leaders and founders themselves.Their responses reveal not a lack of startups, but a need for greater alignment, quality support and long-term coordination.

The Issue Isn’t Deal Flow, It’s Investor Readiness

“We don’t see a lack of early-stage startups or funding. What we’re noticing instead is a growing gap between high-quality and low-quality startups; the bar is rising,” says Andra Bagdonaitė, Partner at Firstpick, an early-stage VC fund active across the Baltic region. According to A. Bagdonaitė, Firstpick receives dozens of new leads weekly, yet only a small number of teams are prepared to move forward. This isn’t a problem of volume, it’s a question of founder preparation and execution. As expectations from VCs increase across Europe, founders must bring more than just ideas to the table. They need clarity on customer validation, scalable models and long-term ambition.

Andrius Milinavičius, General Partner at BSV Ventures, offers a nuanced take: "It's wrong to say fundraising became more difficult - it’s the level of quality that’s changing. The market has matured and expectations have evolved."

While capital is available, it’s no longer enough to have just a good idea. Today’s startups must meet higher standards in execution, market readiness and innovation. In his view, the emergence of AI and no-code tools has “wiped out” a layer of generic digital solutions and that’s forcing both founders and investors to refine what they define as a startup.

“For us at BSV Ventures, we don’t face pipeline issues. Quite the opposite there are more early-stage solutions than we have funding for. It’s a pleasurable problem to have,” A. Milinavičius adds. But that success also comes with a clear recommendation: “Ecosystem builders need to educate more, explain the rules of the game. Lithuania isn’t isolated, it takes just €100 to connect with global startup hubs. The question is whether we’re building solutions that can compete on that level.”

Public Sector Programs Are Scaling Up - But Visibility Still Lags

“Our goal is simple: to help promising ideas turn into successful, scalable businesses,” says Karolina Urbonaitė, Head of Startup Lithuania. She notes that public programs for early-stage startups have grown significantly in both depth and reach. Among the most impactful initiatives is the Startup Lithuania Accelerator powered by “Plug and Play”, which is now entering its fifth cohort and continues to provide local teams with access to international mentorship and corporate networks. In parallel, early-stage startups can access equity-free grants of up to €60,000 through programs like the ICT Accelerator, EduChallenger and GameTech, helping them build without the pressure of early dilution. These efforts are complemented by targeted support for over 200 startups each year to attend international tech events, where they can meet global investors, pitch on global stages and grow their visibility in key markets. Additionally, tools like the Lithuanian Startup Ecosystem Map are improving transparency and connection between startups and investors. But despite these advances, there’s still a gap between available resources and founder awareness or accessibility. “We’re focused on attracting international VCs and building stronger investor relationships but startups must be visible, well-prepared and able to meet market expectations,” K. Urbonaitė adds.

Financial Instruments Are Evolving, But Not Reaching Everyone

“There’s an unfulfilled need for funding in Lithuania. Startups face difficulty obtaining bank loans and the choice of financial instruments remains limited,” says Romualda Stragienė, Director of Innovation Agency Lithuania. R. Stragienė emphasizes that the ecosystem’s financial maturity is improving, but unevenly. New funding schemes, accelerators and public-private partnerships are helping, but only if founders can navigate them. “The ecosystem grows through collaboration and shared learning by exchanging experience, building trust and working together across public and private sectors”, - she says.

From the Founder’s Seat: The Bigger Problem Comes After Seed

“Pre-seed and seed are quite active. The real challenge is later on, we need to focus more on Series A, exit stories and M&A,” says Aurimas Bakas, Founder and CEO at Cyber Upgrade and an active voice in the Lithuanian startup scene. Bakas points to a growing number of early-stage startups that stall when trying to scale. With limited local capital beyond seed, few success stories and unclear M&A pathways, many startups plateau just as they gain traction.His perspective highlights a critical gap between early momentum and scalable growth. This “missing middle” is where many promising ventures lose steam and where investors grow hesitant.

So Why Do Investors Still Say There Aren’t Enough Startups?

The idea that Lithuania lacks investable startups isn’t entirely wrong, but it’s far from complete. Interviews with founders and experts reveal that the issue isn’t raw volume. Rather, it’s about: -The quality and readiness of early-stage teams - Visibility and access to the right investors - A fragmented ecosystem that doesn’t always coordinate effectively - A lack of continuity between seed-stage support and scale-up capitalWith better structure, communication and alignment, the pipeline could function more efficiently and more startups could leap from early promise to investment-ready ventures.

What Needs to Happen Next?

At ROCKIT, we believe the perception of a lack of startups is not rooted in absence but in misalignment, visibility gaps and evolving expectations. As an accelerator and innovation hub, our responsibility is to be a connector, guide and advocate for both founders and the wider ecosystem. That means:

• Elevating startup quality: Through structured bootcamps, mentoring and real-world validation, we aim to help founders sharpen their business models, understand investor criteria and build fundable strategies from day one.

• Building visibility and trust: We continue to launch matchmaking tools, investor roundtables and curated programs that help founders meet the right partners, not just locally, but internationally.

• Supporting long-term growth: Beyond early-stage programs, we focus on helping startups think globally through access to international markets, expansion insights and post-acceleration pathways.

• Strengthening ecosystem alignment: We work closely with public sector players, investors and community builders to reduce fragmentation and ensure continuity throughout the startup lifecycle.

We know the talent is here. The ambition is growing. What’s needed now is focus, clarity and coordination to turn potential into investment and startups into scaleups.

Conclusion: The Pipeline Is Not Empty - It’s Misaligned

The startup community in Lithuania is growing, ambitious and increasingly global. The perception that there aren’t enough investable startups reflects less about what exists and more about what isn’t yet connected or supported well enough. With the right coordination, the gap between talent and investment can close. Lithuania has the tools. It has the founders. Now it needs to build the bridges.