LITHUANIAN CLEANTECH ECOSYSTEM

LITHUANIAN CLEANTECH ECOSYSTEM 2023

SUMMARY LAIMA BALČIŪNĖ

The ambitious European Net Zero Industry Act states that by 2030, the entire EU industry must undergo a fundamental change, with 40% of its production to be based on environmentally neutral technologies such as solar, wind, electricity storage, heat pumps, geothermal, biogas and others.

To reach this 40%, we need to attract significantly more capital investment and mobilise the best talent between 2024 and 2030.

Both the state and private and institutional investors must mobilise their resources in a united way towards a common goal.

The cleantech ecosystem includes solutions that drive sector transformation towards a circular economy and address environmental problems. In Lithuania, the dominant sectors in the cleantech ecosystem are renewable energy, transport, and e-commerce and financial platforms.

In 2023, clean tech investments in Lithuania reached EUR 110.35 million, a 70% annual growth, and accounted 38% of all investments secured by Lithuanian startups in 2023. Since 2017, total investments in Lithuania's clean tech market have reached EUR 823.30 million.

Lithuanian Cleantech Ecosystem 2023 Review is published by one of the leading stakeholders in Lithuania - Sunrise Tech Park. In the review we analyze local energy, mobility and resource startup ecosystems, as well as engineering and production scaleups with globally recognized cleantech products & services. The review aims to highlight the importance of Lithuania's clean technology sector for the local economy and position Lithuania in the context of the global economy.

This review was carried out analyzing data from the Registry Center of Lithuania, interviewing Lithuanian VC investors, startups, scaleups & thought leaders. The study is based on the Global Cleantech Group methodology.

Lithuanian Cleantech Ecosystem 2023 Review

Page 1

WORD FROM THE national authorities

KAROLINA URBONAITĖ

CleanTech startups are vital for addressing environmental challenges and promoting sustainability. They develop technologies that reduce pollution, conserve resources, and mitigate climate change impacts. By driving technological innovation, they enhance energy efficiency, create jobs, stimulate economic growth, and improve public health through cleaner air and water.

Additionally, they contribute to energy independence and help communities adapt to climate change. Their global impact is significant, attracting investment and influencing environmental policies. In essence, CleanTech startups are crucial for fostering a sustainable, healthy, and economically prosperous future.

According to Dealroom, despite the economic uncertainty and tense geopolitical situation in 2023, Lithuania's startup ecosystem, including its three unicorns, has continued to grow steadily and is now one of the top ecosystems in Central and Eastern Europe. Last year, Lithuanian startups secured substantial investments, maintained strong sector dynamics, and showed adaptability to market demands, with 38% of total investments going to the cleantech sector. Although global venture capital investments declined this year, investments in the cleantech sector have been growing.

As we move forward, it is crucial to maintain and enhance this momentum, as it marks just the start of an important journey within the Lithuanian cleantech ecosystem. By upholding our shared vision and dedication, we can work towards a sustainable and prosperous future for Lithuania, while also contributing to Europe's and the world's net-zero goals.

Lithuanian Cleantech Ecosystem 2023 Review

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Cleantech refers to an array of technology solutions designed to address circular economy philosophy and mitigate global environmental issues. Within the spectrum of cleantech, we find different types of technology, such as hardware, software, IoT and even financial services.

Cleantech applications span a set of three industries in Lithuania - renewable energy, mobility & transportation, resources & environment.

“Lithuanian Cleantech Ecosystem 2023 Review” analyzes startups from these industries, as well as related engineering scaleups with globally recognized cleantech products & services.

In 2023, the cleantech market in Lithuania experienced incremental growth. Limited access to capital and moderate government support constrained local companies from achieving accelerated expansion. In comparison to the preceding year, 2023 was characterized by relative stability, with lowered expectations attributed to global economic downturn.

The Lithuanian Cleantech Ecosystem 2023 Review underscores the significance of Lithuania's clean technology sector in bolstering the local economy. With substantial global investments pouring into renewable energy, new mobility, and associated cleantech domains, Lithuania is wellpositioned to assume a leadership role in the region. The review is published by Lithuania’s leading greentech and cleantech technology support organization Sunrise Tech Park.

€110,35M €92M

60

Total cleantech investments in Lithuania reached €110,35m in 2023 - a year-overyear increase of over 70%. Since 2017, when the consolidation of the Lithuanian cleantech market began, total investments in local cleantech have reached €812,5m.

The Lithuanian scene in the energy, transportation, resources & environment sectors currently features 60 active startups and scaleups, with 6 of them successfully closing investment rounds in 2023 alone.

Lithuanian Cleantech Ecosystem 2023 Review

PVcase, the global leader in solar project design software, secured a largest investment of €92m in 2023.

ACTIVE STARTUPS AND SCALEUPS

€2950 The average salary in this sector is 2950 euros, which is currently double the average salary in Lithuania.

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Year 2023 changed the way investors look at startups and their valuations in the Baltics. Median seed valuations increased with fewer rounds, signaling that investors were rewarding fewer startups, focusing mostly on the ones with solid performance metrics.

MAIN INVESTMENTS IN RENEWABLE ENERGY Main cleantech vertical chosen by investors in 2023 was renewable energy (€100m), accounting for over 90% of total sector funding during the year. The final amount of investment raised last year was mostly influenced by the efforts of the leading solar design software company PVcase which raised €92m, and solar module manufacturing company “SoliTek Cells”, which raised €8m.

ATTENTION TO TRANSPORTATION Attention to the transportation sector remains, albeit with a small part of total investments.

TOTAL INVESTMENT

INVESTMENT TRENDS

The total amount of investment in Lithuanian startups in 2023 was €272m - 7% less than in 2022. Investments into cleantech accounted for 37% of total investments into Lithuanian startups.

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TOP INVESTMENTS RAISED BY LITHUANIAN CLEANTECH STARTUPS IN 2023: RANKING

COMPANY

SEGMENT

CAPITAL

1st

PVcase

Energy

€92m

2nd

SoliTek Cells

Energy

€8m

3rd

Heavy Finance

Resources

€3m

4th

GoRamp

Mobility

€2,7m

5th

Inbalance grid

Mobility

€1,3m

6th

walk’15

Mobility

€0,5m

Source: Dealroom

Lithuanian Cleantech Ecosystem 2023 Review

2023 Page 5

LITHUANIAN CLEANTECH STARTUP VALUATIONS: RANKING

COMPANY

SEGMENT

CAPITAL

1st

Vinted

Resources

€3.8b

2nd

PVcase

Energy

€370-544m

3rd

CityBee

Mobility

€305m

4th

Ovoko

Resources

€60-90m

5th

Elinta Motors

Mobility

€17-24m

6th

GoRamp

Mobility

€12-18m

7th

HeavyFinance

Resources

€16m

8th

walk’15

Mobility

€15m

9th

Inbalance Grid

Mobility

€8m

10th

Rubbee

Mobility

€7-9m

11th

FOROS

Resources

€5-6m

12th

Divaks

Resources

€3-4m

13th

Cogastro

Resources

€2-3m

€

Source: Dealroom Dealroom company valuation estimates are based on either of: publicly disclosed value, or estimate based on last funding round amount, using similar rounds as benchmarks.

Lithuanian Cleantech Ecosystem 2023 Review

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5 years

scaleups

59

companies in total

2018

10 years

19 (32%)

68%

Average age

40 (68%)

startup scaleup

Predominant concentration of companies is in Vilnius

The average salary national sector

€204m €672m

€2,950

€1500

startups

The total workforce within the ecosystem - approx.

3,500

MARKET LANDSCAPE

2022

LITHUANIAN CLEANTECH ECOSYSTEM AT GLANCE

employees

Sector revenue 2018

2022

growth rate of

3,3x

Employee count 4.5x increase

98% sector's revenue is attributed to exports

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The Lithuanian cleantech market landscape consists of renewable energy, new mobility and transportation, resources and environment sectors. Out of 59 active startups and scaleups, 6 successfully closed investment rounds in 2023.

RENEWABLE ENERGY SECTOR

MOBILITY SECTOR

RESOURCES & ENVIRONMENT SECTOR

witnessed significant investments, with two prominent companies - PVcase and SoliTek within this ecosystem securing a total of €100m. PVcase received the "Startup of the Year" title in 2023 - the prestigious award, determined by leaders within the startup ecosystem. The startup was awarded twice, receiving another "Tech for Good'' award - a recognition emphasizing the commitment to both innovation and environmental conservation.

secured the second-largest investments, totaling €4,7m. The noteworthy players were 3 startups: Inbalance grid, walk15 and GoRamp, which emerged as the most prominent businesses within the ecosystem.

In Lithuania, the mobility and transportation sector has 3 connected business niches that work together to completely change transportation systems to ever growing circular economy demands. They include developers and makers of electric vehicles and parts, creators of charging infrastructure, and providers of different types of transportation related services.

is the largest, with 29 companies officially developing innovative solutions in material recycling, pollution prevention, and secondhand fashion. According to Climate Trade data, fashion is the third largest polluting industry in the world, producing 10% of annual carbon footprint – more than all international flights and maritime shipping combined.

Lithuanian Cleantech Ecosystem 2023 Review

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OPERATING COMPANIES:

14

COMPANIES TO WATCH:

RENEWABLE ENERGY

NEW INVESTMENTS:

€100M Page 9

At the core of LIthuanian renewable cleantech ecosystem are heavily innovative startups, pioneering not only in the Baltic region, but on a global scale, too. Renewable energy has been by far the most invested Lithuanian cleantech segment in 2023. Renewable energy has also been the fastest-growing cleantech sector in the past two years. There were 550+ talents working in this fast growing sector.

The Vilnius-based startup Inion Software has managed to increase its sales to €1m in 2023. With solar power plants rapidly gaining popularity worldwide, Inion Software is now offering the control tools they need; and the demand for the same is growing in line with the need for power plants.

The company’s control systems allow for the monitoring and analysis of a PV solar plant. The software developed

by Inion Software team stands out in the market for its flexibility – it allows customers to find the necessary information all in one place, and in all its accuracy and functionality; this coupled with the fact that we use AI to predict how a particular solar power plant will work a few days down the line, and how much of the electricity generated will be used.

Inion Software solutions are being deployed in the largest solar parks in Lithuania and Latvia and also in an 18 MW solar park in Sweden. Inion Software has partnered with Abora Solar, one of the world’s most successful hybrid solar companies, and Volter, one of Romania’s most advanced solar power plant builders.

Lithuanian Cleantech Ecosystem 2023 Review

PVcase, the global leader in solar project design software, in 2023 secured a joint investment of €93m, bringing the company’s total funding to over €114m. The equity investment was led by two new investors, London-based growth investor Highland Europe, and climate software investor, Energize Ventures, based in Chicago, along with Boston-based Elephant VC, an investor in the company’s first round in 2021.

An €8m loan to SoliTek, one of the largest solar module manufacturers in Northern Europe, was also confirmed in 2023. A credit line worth €8m is being opened for the company at the State Bank of Taiwan. These funds will allow the company to increase its purchases of Taiwanese components for photovoltaic modules and to obtain better terms for the deliveries of purchased products.

The same year PVcase acquired USA startup Anderson Optimization. Now the company is in the process of deciding the best way to expand the platform into a true end-to-end software solution to service the entire lifecycle of solar utility plants. Until 2023, the company operated almost exclusively from its revenue stream while expanding into 75 countries. This enabled it to build earlier investments into a significant cash reserve to use in upcoming acquisitions.

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OPERATING COMPANIES:

17

COMPANIES TO WATCH:

MOBILITY & TRANSPORTATION

NEW INVESTMENTS:

€4,2M Page 11

The Lithuanian sustainable mobility & transportation sector was the second largest in business investments and the second largest by amount of engineering talents (1200).

Inbalance grid develops smart EV charging solutions and manages a charging network, and has raised €1,3m in 2023. The investment came from the Business Angels Fund II, the Spanish electric mobility fund EIT, the Civinity Group. According to Inbalance grid CEO Simonas Stankus, the newly raised investment will be directed towards maintaining the start-up’s technological advantage and further developing technologies in a limited network.

Inbalance grid and the private investment firm Equite announced a joint investment of €1,5m in Lithuania’s EV infrastructure, with plans to add 600 public EV charging points to the network within a year. The company has been able to expand its network to over 300 charging points in just a couple of years.

Lithuanian Cleantech Ecosystem 2023 Review

Vilnius-based wellness & mobility gamification startup Walk15 has raised €500,000 in a new funding round from Mantas Mikuckas, co-founder of Vinted. The company’s valuation has reached €15m this year thanks to the funding. Founded in July 2019, walk15 develops a sustainable walking platform and the walk15 app that offers smart steps, challenges & rewards solutions for companies. Currently, the app has over 600,000 users, and more than 1,300 companies use the Walk15 platform to engage in step challenges.

GoRamp announced a €2,7m investment in 2023 to tackle the challenges faced by manufacturers throughout the supply chain. The funding round was led by Lead Ventures, with the participation of existing investors Willgrow, Startup Wise guys, and Presto Ventures.

Despite technological advancements, manufacturing firms still struggle with outdated and non-digitized logistics processes. The persistent reliance on manual paperwork, inefficient tracking systems, and a lack of real-time visibility lead to increased costs, expensive errors, and operational inefficiencies across the entire logistics chain.

Through the GoRamp platform, companies can automate logistics procurement, reduce expenses related to warehouse congestion, and make data-driven decisions that optimize the entire supply chain.

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OPERATING COMPANIES:

29

COMPANIES TO WATCH:

RESOURCES & ENVIRONMENT

NEW INVESTMENTS:

€3M Page 13

The Lithuanian Resources & Environment sector had the most workers and skilled talents (1800). In 2023, it didn't receive much money, mainly because big investments like Vinted (€250m) and Ovoko (€14m) had already been raised 1-2 years before.

The investment will help the company continue its European expansion, currently operating in Poland, Portugal, Lithuania, Latvia, and Bulgaria. HeavyFinance will also use the funding to accelerate the switch from conventional farming to regenerative practices, to enroll 200,000 hectares of regenerative farmland as part of a carbon farming initiative, and create direct access for businesses looking to offset their carbon footprint.

Startup sees tackling climate change as a united effort.

With almost a third of global greenhouse emissions coming from agricultural products. Connecting investors with farmers and agricultural specialists through the startup's finance platform is accelerating the adoption of regenerative soil management practices to reduce carbon emissions output throughout Europe.

HeavyFinance, a climate tech investment marketplace for the agricultural industry, has successfully raised €3m during its seed funding round in 2023, led by VC firm Practica Capital. HeavyFinance is providing financing and loan schemes for companies in the sustainable agriculture sphere, with the goal of removing 1 gigaton of CO2 emissions by 2050.

Lithuanian Cleantech Ecosystem 2023 Review

Ovoko is an online marketplace that connects car parts sellers, auto dismantlers, and recyclers with car dealers, mechanics, and enthusiasts. With a catalog of over 15 million used car parts, Ovoko offers fast shipping across Europe and a 14-day money-back guarantee. The company aims to reinvent the circular economy for car parts, supported by a team of talented colleagues and dedicated investors. This mission fuels stable growth and creates new opportunities for thousands of scrap yards across Europe.

Operating out of Lithuania, Poland, Latvia, and Ukraine, Ovoko manages successful business operations in major European markets such as Italy, France, Finland, and Poland. As one of the largest online B2C and B2B marketplaces in Europe, Ovoko strives to make a significant impact by promoting better consumer habits in the traditionally wasteful automotive industry.

In 2022, Ovoko secured a €14 million investment while headquartered in the former Vinted office in Vilnius, and by 2023, the company’s workforce surpassed 100 employees.

Ovoko, was honored with a "Rising Star" award at the "Startup Awards" awards ceremony.

Rubbee is a startup specializing in electric bike conversion kits, notably the Rubbee Drive, which easily transforms traditional bicycles into electric bikes. This lightweight, portable device attaches to the rear wheel, providing robust electric assistance with features like regenerative braking and multiple assistance levels.

Designed for quick installation, Rubbee also includes smart connectivity options, allowing riders to monitor performance via a mobile app.

Aiming to promote sustainable urban mobility, Rubbee makes electric biking accessible and affordable, contributing to reduced urban congestion and pollution.

With growing recognition for its innovation, Rubbee continues to expand its product line and market reach, fostering eco-friendly transportation solutions globally.

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CHALLENGES & BARRIERS OPPORTUNITIES

Interview with ECOSYSTEM heroes

FORECASTS Page 15

AUDRIUS MILUKAS

Audrius Milukas is a partner at Open Circle Capital, (OCC). In the area of sustainable investment, OCC stands as a robust Baltic VC fund with a current team size of seven individuals. This comprises four partners overseeing the fund and three professionals managing operational aspects. Looking ahead to 2024, the fund has ambitious plans on the horizon.

Having fully deployed its first fund, OCC is gearing up to launch a second fund dedicated to investments in Health tech, AI, and Enterprise Software across the Baltic and Nordic regions. Fundraising efforts are underway, and the goal is to have the second fund operational by the first half of 2024.

Lithuanian Cleantech Ecosystem 2023 Review

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CHALLENGES & BARRIERS When asked about the challenges associated with cleantech ecosystem growth, Audrius Milukas, partner at OCC, draws a clear correlation between the success of startups and the conditions they operate in. Policies should be geared towards creating favorable market conditions, ensuring startups have the necessary support to thrive, and addressing key factors contributing to startup failures, including the absence of market demand, financial constraints, and weak teams.

“It is an important task for policy builders to work on creating favorable market conditions in order to support innovation through startups. It is also crucial that VC funds do not miss the opportunity to provide funding to solutions with the highest potential” - says A. Milukas.

Lithuanian Cleantech Ecosystem 2023 Review

OPPORTUNITIES

FORECASTS

Highlighting key opportunities for cleantech in Lithuania, Audrius points to global trends in renewable energy, transportation, fast fashion, and agriculture. Notably, the Lithuanian landscape mirrors these trends, with significant attention and funding directed towards the transportation sector.

In offering advice for Lithuanian cleantech founders and entrepreneurs in the coming year, OCC emphasizes active participation in policy discussions and collaboration with policymakers. A transparent and supportive environment is deemed essential for fostering innovation, incentivizing sustainable practices, and accelerating cleantech adoption.

Drawing inspiration from global cleantech adoption examples, OCC sees potential for solar and wind energy advancements in the Baltic region.

Another possible advancement in the energy sector could be related to hydrogen, as the Baltic Sea has abundant reservoirs of hydrogen.

Moreover, there are already governmental directions published on the hydrogen sector’s expansion until 2030.

The success of PVcase, and due to the newly published EU Rooftop Solar Standard, Lithuania and other Baltic countries could follow the same path, and endorse solar energy even more. However, the Baltics could also take advantage of the wind energy by adopting respective legislation. Denmark could be taken as a good practice example and one of the most successful decentralized energy systems in the world, with over half of its electricity generated from wind turbines. The Baltics could use its strong wind resource enabled by the Baltic Sea as a resource as well.

Additionally, founders are encouraged to proactively seek funding, anticipating improved dynamics in 2024, as financial support is pivotal for developing and bringing cleantech products to market.

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VILMA PURIENĖ

Vilma Purienė, Director at the Knowledge and Technology Transfer Centre of Vilnius Gediminas Technical University (VILNIUS TECH), oversees the promotion of R&D commercialization, knowledge and technology transfer, and the development of sciencebusiness partnerships.

Recently VILNIUS TECH established a competence center with a mission Smart and Climate-neutral Lithuania.

Lithuanian Cleantech Ecosystem 2023 Review

The center will create an R&D ecosystem of technology universities and companies based on advanced, climate-neutral production technologies and materials. The main focus will be the development of technologies to reduce greenhouse gas emissions, develop sustainable solutions in the construction sector, and address other environmental challenges.

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CHALLENGES & BARRIERS Despite widespread discussions and initiatives on sustainability, Vilma Purienė says, that challenges persist in theoretical and practical knowledge related to sustainability technologies. Key challenges include: 1. Addressing sustainability issues through data generation, processing, and modeling.

2. Promoting sustainable consumption and recycling.

3. Recycling and reusing materials for prototyping new products.

As a technology university, the goal is to be a competence center aiding government, public organizations, and businesses in adopting sustainability while fostering a culture of environmental responsibility.

Lithuanian Cleantech Ecosystem 2023 Review

OPPORTUNITIES

FORECASTS

Sustainability has been one of the University's strategic goals for many years, and the University has accumulated a wealth of knowledge over the years that it intends to share widely with the public.

Looking to Scandinavian countries like Finland, where bio and circular economy principles are promoted, Lithuania can adopt strategies for regional economic zone development. Examples within Lithuania include material reuse, Big Data for sustainable solutions, and applying circularity principles in the food chain to reduce environmental impact. First of all, we have to continue raising public awareness of innovative sustainable technologies to inspire startups and students. The university's Sustainability centre welcomes the younger generation to explore and implement sustainability solutions.

However, first of all, the concept of sustainability should be explored, making the most of the scientific and technological potential to achieve the Sustainable Development Goals one of the most important challenges of all times - in the fight against climate change.

It is encouraging that the public, science and business are already aware of the importance of this goal and are increasingly active in developing and implementing new solutions related to the environment and sustainability and that business and science are increasingly collaborating on this topic. We cannot afford to get tired. We must stick to the Green Deal and be a climate-neutral economy as early as possible.

It is important to emphasize one thing - the whole world needs as many talented, active, brave people, "new unicorns" in the field of sustainability as possible. I wish them to lead by example and encourage the community to start even more proactively work and create in the field of sustainability & cleantech.

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KRISTINA BABELYTĖLABANAUSKĖ

Kristina Babelytė - Labanauskė, Head of Innovation Office at Vilnius University, is responsible for supporting science-business collaboration, managing knowledge and technology transfer issues as well as facilitation of entrepreneurship at university.

Lithuanian Cleantech Ecosystem 2023 Review

As the largest university in Lithuania with more than 24 000 students and 3400 researchers, Vilnius University offers cutting edge R&D based solutions for partners in business, academic and public domains. Vilnius University is one of the key stakeholders in the cleantech area.

The spectrum of the research within Vilnius University is broad: from chemistry, laser technologies, physics, AI, quantum technologies, life sciences to social sciences and humanities, however the innovation potential lies in the university‘s interdisciplinary approach to solving complex challenges that enterprise face.

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CHALLENGES & BARRIERS When asked to name the main challenges for cleantech hindering the growth of startups and the ecosystem, Kristina Babelytė-Labanauskė points out that technologies tackling climate change challenges are usually research-based.

“This means substantial investments in time, human effort, and finances. However, to spin out technology from a university, we still lack public or private funds, venture capital included, that would be highly risk-taking. This is especially prominent for the solutions that might be developed for higher technology readiness level (TRL). Therefore, there are cases, when researchers simply refuse promising research, not bringing their solutions for further testing or validation, already out of the lab, within the socalled operational environment. This lack of funding is not only stalling the progress of cleantech, but also preventing potentially game-changing solutions from reaching the market”, - says Kristina Babelytė-Labanauskė.

Lithuanian Cleantech Ecosystem 2023 Review

OPPORTUNITIES

FORECASTS

Kristina Babelytė-Labanauskė strongly believes that collaboration between a university and a business company starts with a dialogue on mutual concerns in technology, an integrative outlook towards an entrepreneurial mindset, the current track of activities on each side, and perspectives for partnerships.

We asked Kristina what the best global clean-tech adoption examples could be beneficially adopted in Lithuania. Without hesitation, Kristina pointed out Finland as one of the greatest examples. Ambitious Finnish national climate change policy demonstrates leading results, even though naturally quite severe Finnish climate conditions require huge energy demands.

Referring to the potential of interdisciplinary collaboration, Kristina would reckon that there are plenty of possibilities for integrating data collection instruments and benefiting from big data or AI tools in the cleantech area. “Data analytics, foresight or scenario modeling, based on, for example, machine learning, I believe, would add great value for either water, soil, air pollution treatment, wind and soil asset development or progress of any climate technology related sector,” - says Kristina.

“It is stunning that in Finland, it all starts with education and public discourse, which undoubtedly rewards the society with environmentally-conscious business activities, eco-friendly public sector, as well as cleantech innovations.”

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VIKTORIJA TRIMBEL

CoInvest Capital, that Viktorija Trimbel is leading, in cooperation with groups of business angels or private VC funds invests in start-ups and companies undergoing active development and growth phases.

Fund caps its investment return to 6% annually during the investment period. Excess return is a premium to private investors who co-invest with the Fund.

Lithuanian Cleantech Ecosystem 2023 Review

The Fund is acting as a silent investor and is a major player in the Lithuanian startup market. Founded in 2017, CoInvest Capital is a corporate venture firm and is based in Vilnius, Lithuania.

The firm seeks to invest in the consumer durables, mobile, cleantech and manufacturing sectors. Total CoInvest Capital investments portfolio reached 29 with one exit.

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OPPORTUNITIES Exploring prime opportunities for cleantech in Lithuania, fund’s managing director Viktorija Trimbel points out focus on green finance: the public's heightened interest in green finance, coupled with the establishment of the Green Finance Institute of INVEGA, presents a significant opportunity. This emphasizes the growing importance of sustaina- ble financial practices within the cleantech sector.

Energy independence and resilience is among opportunities, too. Lithuania's strategic commitment to maintaining energy independence and resilience positions cleantech as a key sector. This reflects a broader trend in global cleantech and aligns 100% with Europe's Green Deal, with continent’s countries prioritizing clean energy solutions to enhance energy security and sustainability. The burgeoning areas of waste management, emobility solutions, and innovations for the solar and wind power industries offer substantial opportunities, too.

Lithuanian Cleantech Ecosystem 2023 Review

FORECASTS “With internal funds earmarked for cleantech, greentech, and climatetech investments, the encouragement is for founders to actively apply through the designated Coinvest Capital website.

Proactive scouting for suitable targets will also be undertaken. Our investment approach involves collaboration with business angels and accredited private investors under a profit-sharing scheme.

Additionally, there's an openness to engaging in co-investments with other VC funds, fostering a collaborative ecosystem for the rapid development and scaling of impactful cleantech solutions” says Viktorija Trimbel, managing director of Cionvest Capital. ` “As VC investors, our preference is for startups to originate innovative solutions locally with global scalability. Startups should embody global ambition, staying attuned to industry trends, market needs, and customer pain points”, says Viktorija Trimbel. Leveraging the engineering and IT talent in the Baltics, startups can develop cleantech solutions that align with global demands. Collaborating with strong ecosystems, industries, and major companies allows for co-creation, ensuring swift development and improvement of minimum viable products based on customer feedback.

Additionally, trends such as circular economy practices, digitalization of energy, and advancements in energy storage technologies globally underscore the need for Baltic cleantech companies to align with these evolving paradigms. This involves integrating smart technologies for efficient waste management, harnessing data for optimizing energy consumption, and exploring cutting-edge energy storage solutions.

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DMITRIJ SOSUNOV

FIRSTPICK is a high-speed VC fund and an accelerator for tech startups in the Baltics. The fund is quite a new player on the market but already has an impressive track record. Founded at the end of 2022, FIRSTPICK managed to back 19 technology companies - alone in 2023.

Dmitrij Sosunov is a partner at FIRSTPICK, and owns a bold track record of businiess development and investing.

Lithuanian Cleantech Ecosystem 2023 Review

At the beginning of 2024, FIRSTPICK team comprised 7 full-time members, complemented by up to 10 dedicated external experts and advisors providing daily support. Looking ahead to 2024, FIRSTPICK is actively deploying a €20 million fund earmarked for early-stage investments in the Baltics over the next three years. The team aims to engage in 45 deals, with a specific emphasis on cleantech.

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CHALLENGES & BARRIERS

“Addressing challenges in the cleantech sector, we anticipate a shift in the Baltic market towards a more sustainable ethos. Consequently, we foresee fewer impediments to the adoption of cleantech. The key lies in fostering education and promoting sustainable business models, practices, and technologies,” - says Dmitrij Sosunov, a partner at FIRSTPICK. Regarding environmental commitment, the fund advocates for the measurement and improvement of the environmental impact of startups annually. This stance is reinforced by a growing investor demand for environmental accountability, even in the early stages of development where resources may be limited. As an investment firm, FIRSTPICK actively assists companies in adapting to this paradigm shift.

Lithuanian Cleantech Ecosystem 2023 Review

OPPORTUNITIES

FORECASTS

Identifying opportunities in Lithuanian cleantech, the team's focus centers on the realization that disruptive technology is not a prerequisite for addressing global concerns.

“Looking ahead, we advise and wish for the Lithuanian cleantech ecosystem to recognize that cleantech is not merely a buzzword. There will be a concerted push for tech founders to reasess their business models and prioritize sustainability moving forward” - Dmitrij Sosunov says.

Sustainable development, optimizing long-term value for both shareholders and stakeholders, can be achieved by reevaluating how tech companies in the ecosystem finance, design, produce, supply, and price their products or services. Examining global cleantech adoption, according to FIRSTPICK partner, notable examples from the Baltics include HeavyFinance's mission to eliminate 1 gigaton of CO2 emissions by 2050, PVcase's solution facilitating a faster transition to clean energy on a global scale, and Vinted's transformative approach to consumer behavior and wardrobe consumption.

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KAROLIS MIRINAVIČIUS

Karolis Mirinavičius is the Innovation Team Lead at Ignitis Innovation Hub. Innovation Hub plays a pivotal role, and is a prominent and innovative force in the Baltic region's business landscape. Positioned at the intersection of local infrastructure, funding channels, strategic partnerships, and valuable data, the Hub actively supports the expansion of the EnergyTech ecosystem.

Lithuanian Cleantech Ecosystem 2023 Review

In 2023, Ignitis Group strategically entered the realm of private equity by investing in the "World Fund" venture capital fund. Over the next decade, the group plans a comprehensive investment of approximately €25 million through this venture.

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CHALLENGES & BARRIERS

OPPORTUNITIES

FORECASTS

Cost Competitiveness: Sustainable technologies face challenges in achieving cost competitiveness when compared to well-established conventional technologies.

Energy Efficiency in Buildings: Cleantech solutions targeting improved energy efficiency in buildings, including smart heating/cooling systems and energy-efficient appliances, present significant opportunities.

Political and Regulatory Uncertainty: The absence of certainty in political support and regulatory frameworks poses obstacles to long-term planning and investment.

Renewable Energy Development: With Lithuania actively increasing its share of renewable energy, cleantech can play a crucial role in addressing the intermittent nature of renewable sources. This includes contributions to the development of energy storage, P2X technologies, and smart grid solutions.

Exploring global cleantech adoption examples beneficial for the Baltics, Denmark's global leadership in wind energy, with wind power contributing 55% to its energy consumption, serves as an inspiring example. While Lithuania is progressing with a new offshore wind farm, there is a need for stronger commitments in Latvia and Estonia to fully tap into their higher wind energy potential.

Technological Uncertainties: The innovative nature of cleantech technologies introduces uncertainties, making it challenging to comprehensively understand their effectiveness, scalability, and longterm sustainability in the early stages.

Lithuanian Cleantech Ecosystem 2023 Review

Smart Meter Integration: Lithuania's deployment of smart electricity meters, totaling approximately 670,000 units, opens doors for cleantech to leverage smart meter data. This can enhance energy efficiency, optimize grid operations, and facilitate the integration of renewable energy sources.

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