Founders
Is it easier for founders to fundraise if they mention AI?
Yes.
AI is a highly attractive sector in 2025, and mentioning AI can draw investor attention. However, founders must demonstrate genuine AI applications and clear value propositions; overhyping AI without substance can backfire.
Should investors continue to prioritise profitability over growth this year?
Yes.
Profitability ensures resilience and aligns with the market's focus on sustainable growth, especially in uncertain economic conditions.
Should startups consider secondary share sales as part of their exit strategy?
Yes, secondary share sales allow early investors and founders to realize partial liquidity while enabling new investors to join the cap table.
Are founders who focus on profitability early on more likely to succeed?
No, while profitability is important, early-stage startups often need to prioritize growth and market share to establish a competitive advantage before focusing on profits.
Is it riskier to invest in early-stage startups today than a decade ago?
No, while markets are more competitive, access to tools, data, and a growing number of accelerators has reduced early-stage risks in many cases.
Should investors push for earlier exits to improve their fund performance?
No, while earlier exits can provide faster returns, they may leave significant value on the table. A balanced approach that maximizes long-term returns is often better.
Is it better for founders to bootstrap their startup before raising external capital?
Yes, bootstrapping allows founders to retain more equity and demonstrate traction before approaching investors, but it’s not always feasible in capital-intensive industries.
Will the next European unicorn come from the Baltics?
Yes.
The Baltics have consistently produced high-growth startups like Bolt, Wise, and Pipedrive, with strong ecosystems supporting innovation in fintech, AI, and deep tech. This momentum suggests the next European unicorns are likely to emerge from this region.
Is 2025 a favorable year for IPOs in Europe?
Yes, improving market conditions and strong growth in sectors like green tech and AI are expected to drive more European IPOs in 2025.
Is access to funding the biggest challenge currently for Baltic early-stage founders?
No.
While access to funding is always a challenge, the bigger issue for Baltic early-stage founders is scaling beyond the region. Early-stage funding is relatively accessible through local VCs, angel investors, and government-backed programs. However, the limited size of the Baltic markets forces startups to expand internationally early, which brings challenges in hiring, networking, and securing larger follow-on funding rounds from global investors.
Does the Baltic investor ecosystem have what it takes to support the growth of the next wave of success stories?
Yes.
The Baltic investor ecosystem has the foundational elements—early-stage capital, experienced mentors, strong international networks, and government support programs—to support the next wave of success stories. However, continued efforts to expand late-stage funding and attract global investors will be essential to fully capitalize on the region’s startup potential.
Will we see a Baltic startup do an IPO this year?
No.
While the Baltic startup ecosystem is strong, most companies are likely to pursue additional growth or funding rounds before considering an IPO in the current market conditions.