Baltic Deep Tech Report 2025

Iron Wolf Capital, Startup Estonia, Startup Lithuania, and WALLESS have co-authored the Baltic Deep Tech Report 2025, the third annual edition of the region's most comprehensive data-driven assessment of its deep tech startup economy. Where the first two editions tracked an emerging trend, this year's report documents something more definitive: deep tech has moved from a niche vertical to the defining force of Baltic innovation, and defence technology has emerged as its fastest-accelerating dimension.

"Our conviction is simple: the next wave of enduring companies will be built here."

"The Baltic startup ecosystem is evolving into a focused deep tech region, defined by technical talent, and capital efficiency with strong momentum across energy, AI, robotics, and increasingly, defence, security, and resilience."
Kasparas Jurgelionis, Managing Partner at Iron Wolf Capital

Key Takeaways

1. Deep tech now dominates Baltic startup funding

Deep tech represents nearly half of all funding (49.5%) despite being just 13.5% of startups, with enterprise value growing 2.8x in five years and outpacing even the US in relative deep tech EV growth.

2. A self-sustaining regional capital model is in formation

84% of deep tech funding now comes from domestic and European investors, with domestic investment up 238% in three years, a financing sovereignty almost no comparable European tech region has achieved.

3. The ecosystem is entering its execution phase

A strong Series A surge, up 79% from previous year, and nearly half of deep tech capital concentrated at Series C signals the Baltics are entering the phase where genuine category leaders get built.

4. Specialization clusters and a defence flywheel are co-emerging

Energy and enterprise software each exceed €2B in EV, while the defence vertical, making up 15.4% of 2025 funding, is quietly building a modern defence tech stack through commercial deep tech.

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"It is clear that the Baltic region is only at the beginning of what we can achieve."

"Deep tech in Estonia is clearly on the rise. Nearly half of all startup investments now go to deep tech companies – an impressive achievement given their modest share of the overall startup landscape."

Vaido Mikheim, Head of Startup Estonia