Another stellar success story of ecosystem productivity and network effect — 14 out of 30 fastest-growing startups in Eastern Europe are from Estonia.

Among its neighbours, Estonian tech star continues to shine bright. Estonian startups have claimed 14 out of 30 positions in the latest Sifted ranking of Eastern Europe’s fastest-growing startups, reinforcing the nation’s status as one of the leading European tech hub.

The network effect

The foundation of this success can be traced back to what many call the “Skype effect,” argues the newspaper. As Ringy cofounder Taavi Tuisk, whose company placed #3 in the ranking, puts it: “All the startups need to say thank you to the Skype guys.” This single success story has created a cascade of new companies, many with Skype connections, establishing one of Europe’s most vibrant tech ecosystems for the next decades.

Still, the Estonian startups in the top 30 represent diverse sectors. Among them:

• Ringy (#3) – Circular economy/refurbished electronics
• Wallester (#5) – Fintech/CFO tech
• Vok Bikes (#6) – Climate tech/Electric vehicles
• Montonio (#7) – Fintech/Payments
• Enty (#10) – Fintech/CFO tech
• MyDello (#11) – Supply chain & logistics
• Roofit.Solar (#12) – Solar energy
• Themo (#13) – Smart buildings & cities
• Tuum (#14) – Digital banking
• Yaga (#17) – Circular economy
• Waybiller (#18) – Supply chain & logistics
• Katana Cloud Inventory (#19) – Supply chain & logistics
• Haut.AI (#26) – Beauty tech
• Coursy.io (#28) – EdTech

Building on success

Sifted also highlights that the country’s tech sector has demonstrated remarkable strength in 2024, with Estonian companies securing the two largest tech deals in Eastern Europe. Renewable energy provider Sunly raised €300 million, while mobility giant Bolt secured €220 million, both deals signed in Tallinn.

As mentioned before, this reinforces the network effect. The ecosystem’s strength lies in its collaborative nature. As Tuisk explains, the tight-knit community facilitates invaluable knowledge sharing: “You can get advice from anyone. They’ve made all the mistakes already and can tell you how to avoid them.” This culture of openness and mutual support has helped Estonia produce an impressive roster of ten unicorns, including international success stories like Wise, Bolt, Pipedrive, and Veriff.

In 2024, Estonian startups have secured 61 deals totalling €726 million, dramatically outpacing neighbouring countries. For perspective, Latvia, another Baltic state, has recorded just 19 deals with a combined value of €16 million during the same period. For investors, there’s no better place in the region.

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Source: Investinestonia