LITHUANIAN CLEANTECH ECOSYSTEM

TheambitiousEuropeanNetZeroIndustryActstatesthatby2030, theentireEUindustrymustundergoafundamentalchange,with 40% of its production to be based on environmentally neutral technologiessuchassolar,wind,electricitystorage,heatpumps, geothermal,biogasandothers.

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 mobilisetheirresourcesinaunitedwaytowardsacommongoal.

SUMMARY LAIMABALČIŪNĖ

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 investmentsinLithuaniascleantechmarkethavereachedEUR823.30million.

Lithuanian Cleantech Ecosystem 2023 Review is published by one of the leading stakeholders in Lithuania-SunriseTechPark.Inthereviewweanalyzelocalenergy,mobilityandresourcestartup 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 sectorforthelocaleconomyandpositionLithuaniainthecontextoftheglobaleconomy.

ThisreviewwascarriedoutanalyzingdatafromtheRegistryCenterofLithuania,interviewingLithuanianVCinvestors,startups scaleups&thoughtleaders.ThestudyisbasedontheGlobalCleantechGroupmethodology.

WORD FROM THE national authorities KAROLINAURBONAITĖ

CleanTech startups are vital for addressing environmental challenges and promotingsustainability.Theydeveloptechnologiesthatreducepollution,conserve resources, and mitigate climate change impacts. By driving technological innovation,theyenhanceenergyefficiency,createjobs,stimulateeconomicgrowth, andimprovepublichealththroughcleanerairandwater.

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 fosteringasustainable,healthy,andeconomicallyprosperousfuture.

AccordingtoDealroom,despitetheeconomicuncertaintyandtensegeopolitical situation in 2023, Lithuania's startup ecosystem, including its three unicorns, has continuedtogrowsteadilyandisnowoneofthetopecosystemsinCentraland 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 cleantechsectorhavebeengrowing.

Aswemoveforward,itiscrucialtomaintainandenhancethismomentum,asit marks just the start of an important journey within the Lithuanian cleantech ecosystem.Byupholdingoursharedvisionanddedication,wecanworktowards a sustainable and prosperous future for Lithuania, while also contributing to Europe'sandtheworld'snet-zerogoals.

Cleantechreferstoanarrayoftechnologysolutionsdesignedtoaddresscirculareconomyphilosophyandmitigateglobal environmentalissues.Withinthespectrumofcleantech,wefinddifferenttypesoftechnology,suchashardware,software, IoTandevenfinancialservices.

Cleantech applications span a set of three industriesinLithuania-renewableenergy,mobility & transportation, resources & environment. “Lithuanian Cleantech Ecosystem 2023 Review” analyzes startups from these industries, as well as related engineering scaleups with globally recognizedcleantechproducts&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 globaleconomicdownturn.

The Lithuanian Cleantech Ecosystem 2023 Review underscores the significance of Lithuanias 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 supportorganizationSunriseTechPark.

€110,35M

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.

€92M

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

ACTIVE STARTUPSAND SCALEUPS

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.

The average salary in this sector is 2950 euros, which is currently double theaveragesalaryinLithuania.

INVESTMENT TRENDS

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 mostlyontheoneswithsolidperformancemetrics.

MAIN INVESTMENTS IN RENEWABLE ENERGY

Main cleantech vertical chosen by investors in 2023 was renewable energy(€100m),accountingforover90%oftotalsectorfundingduring the year. The final amount of investment raised last year was mostly influencedbytheeffortsoftheleadingsolardesignsoftwarecompany PVcase which raised €92m, and solar module manufacturing company“SoliTekCells”,whichraised€8m.

ATTENTION TO TRANSPORTATION

Attentiontothetransportationsectorremains,albeitwithasmallpartof totalinvestments.

TOTAL INVESTMENT

The total amount of investment in Lithuanian startups in 2023 was €272m-7%lessthanin2022.Investmentsintocleantechaccountedfor 37%oftotalinvestmentsintoLithuanianstartups.

TOP INVESTMENTS

RAISEDBYLITHUANIANCLEANTECHSTARTUPSIN 2023:

RANKING COMPANY

LITHUANIANCLEANTECHSTARTUPVALUATIONS:

RANKING

MARKET LANDSCAPE

LITHUANIANCLEANTECH ECOSYSTEMATGLANCE

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 roundsin2023.

RENEWABLE ENERGY SECTOR

witnessed significant investments, with two prominent companies - PVcase and SoliTekwithin 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.

MOBILITY SECTOR

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 sectorhas3connectedbusinessnichesthat 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 typesoftransportationrelatedservices.

RESOURCES & ENVIRONMENT SECTOR

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.

COMPANIES TO WATCH:

AtthecoreofLIthuanianrenewablecleantechecosystemareheavilyinnovativestartups,pioneeringnotonlyin the Baltic region, but on a global scale, too. Renewable energy has been by far the most invested Lithuanian cleantechsegmentin2023.Renewableenergyhasalsobeenthefastest-growingcleantechsectorinthepasttwo years.Therewere550+talentsworkinginthisfastgrowingsector.

TheVilnius-basedstartupInionSoftwarehasmanagedto increase its sales to €1m in 2023. With solar power plants rapidly gaining popularity worldwide, Inion Software is nowofferingthecontroltoolstheyneed;andthedemand for the same is growing in line with the need for power plants.

The company’s control systems allow for the monitoring solar plant. The software developed y m 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 predicthowaparticularsolarpowerplantwillworkafew days down the line, and how much of the electricity generatedwillbeused.

InionSoftwaresolutionsarebeingdeployedinthelargest solar parks in Lithuania and Latvia and also in an 18 MW solar park in Sweden. Inion Software has partnered with Abora Solar, o f ccessful hybrid solar compan ania’s most advancedsolarp

tware, ng the equity ed

growth investor Highland E re investor, Energize Ventures, th y’s

quired USA startup Anderson pany 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 operatedalmostexclusivelyfromitsrevenue expandinginto75countries.Thisenabledit i cant cash rese u

An€8mloantoSoliTek,oneofthelargestsolarmodule manufacturersinNorthernEurope,wasalsoconfirmed in2023.Acreditlineworth€8misbeingopenedforthe companyattheStateBankofTaiwan.Thesefundswill allow the company to increase its purchases of Taiwanese components for photovoltaic modules and to obtain better terms for the deliveries of purchased products.

€4,2M 17 MOBILITY & TRANSPORTATION

COMPANIES TO WATCH:

NEW INVESTMENTS: OPERATING COMPANIES:

TheLithuaniansustainablemobility&transportationsectorwasthesecondlargestinbusiness investmentsandthesecondlargestbyamountofengineeringtalents(1200).

Inbala arging solutions and mana has raised €1,3m in 2023. The investment came from the Business Angels Fund II, the Spanish electric mobility fund EIT, the Civinity Group.AccordingtoInbalancegridCEOSimonasStankus, the newly raised investment will be directed towards maintaining the start-up’s technological advantage and further developing technologies in a limited network. uite s EV ging has ging

Vilnius-based wellness & mobility gamification startup Walk15hasraised€500,000inanewfundingroundfrom 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, andmorethan1,300companiesusetheWalk15platform toengageinstepchallenges.

GoRamp announced a €2,7m investment in 2023 to tacklethechallengesfacedbymanufacturersthroughout thesupplychain.ThefundingroundwasledbyLeadVentures, with the participation of existing investors Willgrow, StartupWiseguys,andPrestoVentures.

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 e errors, and operationalinefficienciesa gisticschain. ThroughtheGoRampplatform,companiescanautomate logistics procurement, reduce expenses related to warehouse congestion, and make data-driven decisions that optimizetheentiresupplychain.

RESOURCES & ENVIRONMENT

OPERATING COMPANIES: €3M 29

COMPANIES TO WATCH: NEW INVESTMENTS:

TheLithuanianResources&Environmentsectorhadthemostworkersandskilledtalents(1800).In 2023, it didn't receive much money, mainly because big investments like Vinted (€250m) and Ovoko(€14m)hadalreadybeenraised1-2yearsbefore.

The investment will help the company continue its European expansion currently operating in Poland, Portugal, Lithu ncewillalsouse the f m conventional farming to regenerative practices, to enroll 200,000 hectares of regenerative farmland as part of a carbon farminginitiative,andcreatedirectaccessforbusinesses lookingtooffsettheircarbonfootprint.

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 startupsfinanceplatformisacceleratingtheadoptionof regenerative soil management practices to reduce carbonemissionsoutputthroughoutEurope.

HeavyFinance, a climate tech investment marketplace fortheagriculturalindustry,hassuccessfullyraised€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 agriculturesphere,withthegoalofremoving1gigatonof CO2emissionsby2050.

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 te nd dedicated investors. This nd creates new opportunities for thousands of scrap yards acrossEurope.

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 significantimpactbypromotingbetterconsumerhabitsin thetraditionallywastefulautomotiveindustry.

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 performanceviaamobileapp.

In 2022, Ovoko secured a €14 million investment while headquarteredintheformerVintedofficeinVilnius,andby 2023,thecompany’sworkforcesurpassed100employees. Ovoko, was honored with a "Rising Star" award at the "StartupAwards"awardsceremony.

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 fosteringeco-friendlytransportationsolutionsglobally.

Interview with ECOSYSTEM heroes

FORECASTS OPPORTUNITIES CHALLENGES& BARRIERS

AUDRIUSMILUKAS

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 hasambitiousplansonthehorizon.

Havingfullydeployeditsfirstfund,OCCisgearingupto launch a second fund dedicated to investments in Healthtech,AI,andEnterpriseSoftwareacrosstheBaltic and Nordic regions. Fundraising efforts are underway, and the goal is to have the second fund operational by thefirsthalfof2024.

CHALLENGES& BARRIERS OPPORTUNITIES FORECASTS

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 necessarysupporttothrive,andaddressingkey factors contributing to startup failures, including the absence of market demand, financialconstraints,andweakteams.

“It is an important task for policy builders to workoncreatingfavorablemarketconditionsin order to support innovation through startups. It is also crucial that VC funds do not miss the opportunitytoprovidefundingtosolutionswith thehighestpotential”-saysA.Milukas.

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 transportationsector.

Another possible advancement in the energy sector could be related to hydrogen, as the BalticSeahasabundantreservoirsofhydrogen. Moreover, there are already governmental directions published on the hydrogen sector’s expansionuntil2030.

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. Drawinginspirationfromglobalcleantechadoptionexamples, OCC sees potential for solar and wind energy advancements intheBalticregion.

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 windenergybyadoptingrespectivelegislation.Denmarkcould be taken as a good practice example and one of the most successfuldecentralizedenergysystemsintheworld,withover half of its electricity generated from wind turbines. The Baltics coulduseitsstrongwindresourceenabledbytheBalticSeaas aresourceaswell.

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

VILMAPURIENĖ

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 missionSmartandClimate-neutralLithuania.

ThecenterwillcreateanR&Decosystemoftechnology 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,andaddressotherenvironmentalchallenges.

CHALLENGES& BARRIERS OPPORTUNITIES FORECASTS

Despite widespread discussions and initiatives on sustainability, Vilma Purienė says, that challenges persist in theoretical and practical knowledge related to sustainability technologies.Keychallengesinclude: Addressing sustainability issues through datageneration,processing,andmodeling.

1. Promoting sustainable consumption and recycling.

3.

2. Recycling and reusing materials for prototypingnewproducts.

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 environmentalresponsibility.

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 sharewidelywiththepublic.

However,firstofall,theconceptofsustainability should be explored, making the most of the scientific and technological potential to achieve the Sustainable Development Goalsone of the most important challenges of all times-inthefightagainstclimatechange.

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 andthatbusinessandscienceareincreasingly collaboratingonthistopic.Wecannotaffordto get tired. We must stick to the Green Deal and be a climate-neutral economy as early as possible.

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.

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

RISTINABABELYTĖABANAUSKĖ

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.

AsthelargestuniversityinLithuaniawithmorethan24000 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 thekeystakeholdersinthecleantecharea.

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 challengesthatenterpriseface.

CHALLENGES& BARRIERS OPPORTUNITIES FORECASTS

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 changechallengesareusuallyresearch-based.

“This means substantial investments in time, humaneffort,andfinances.However,tospinout 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 developedforhighertechnologyreadinesslevel (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”,-saysKristinaBabelytė-Labanauskė.

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 outlooktowardsanentrepreneurialmindset,the current track of activities on each side, and perspectivesforpartnerships.

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,foresightorscenariomodeling,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 technologyrelatedsector,”-saysKristina.

We asked Kristina what the best global clean-tech adoptionexamplescouldbebeneficiallyadoptedin Lithuania. Without hesitation, Kristina pointed out Finland as one of the greatest examples. Ambitious Finnish national climate change policy demonstratesleadingresults,eventhoughnaturally quitesevereFinnishclimateconditionsrequirehuge energydemands.

“It is stunning that in Finland, it all starts with education and public discourse, which undoubtedly rewards the society with environmentally-consciousbusinessactivities,eco-friendlypublicsector, aswellascleantechinnovations.”

VIKTORIJATRIMBEL

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 privateinvestorswhoco-investwiththeFund.

The Fund is acting as a silent investor and is a major playerintheLithuanianstartupmarket.Foundedin2017, CoInvest Capital is a corporate venture firm and is basedinVilnius,Lithuania.

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

OPPORTUNITIES FORECASTS

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 globalcleantechandaligns100%withEuropesGreenDeal, withcontinent’scountriesprioritizingcleanenergysolutions to enhance energy security and sustainability. The burgeoning areas of waste management, emobility solutions, and innovations for the solar and wind power industriesoffersubstantialopportunities,too.

“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”saysViktorijaTrimbel,managingdirectorofCionvestCapital.`

“As VC investors, our preference is for startups to originate innovative solutions locally with global scalability.Startupsshouldembodyglobalambition,stayingattunedtoindustrytrends,marketneeds, 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,trendssuchascirculareconomypractices,digitalizationofenergy,andadvancementsin energystoragetechnologiesgloballyunderscoretheneedforBalticcleantechcompaniestoalignwith these evolving paradigms. This involves integrating smart technologies for efficient waste management,harnessingdataforoptimizingenergyconsumption,andexploringcutting-edgeenergy storagesolutions.

DMITRIJSOSUNOV

FIRSTPICKisahigh-speedVCfundandanacceleratorfor techstartupsintheBaltics.Thefundisquiteanewplayer on the market but already has an impressive track record. Founded at the end of 2022, FIRSTPICK managed toback19technologycompanies-alonein2023.

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

At the beginning of 2024, FIRSTPICK team comprised 7 full-time members, complemented by up to 10 dedicatedexternalexpertsandadvisorsprovidingdaily support. Looking ahead to 2024, FIRSTPICK is actively deployinga€20millionfundearmarkedforearly-stage investmentsintheBalticsoverthenextthreeyears.The team aims to engage in 45 deals, with a specific emphasisoncleantech.

CHALLENGES& BARRIERS OPPORTUNITIES FORECASTS

“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 DmitrijSosunov,apartneratFIRSTPICK.

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 ofdevelopmentwhereresourcesmaybelimited.Asan investmentfirm,FIRSTPICKactivelyassistscompaniesin adaptingtothisparadigmshift.

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

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'ssolutionfacilitatingafastertransitionto clean energy on a global scale, and Vinted's transformative approach to consumer behavior and wardrobeconsumption.

“Looking ahead, we advise and wish for the Lithuanian cleantech ecosystem to recognize thatcleantechisnotmerelyabuzzword.There will be a concerted push for tech founders to reasess their business models and prioritize sustainability moving forward” - Dmitrij Sosunovsays.

KAROLISMIRINAVIČIUS

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.

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 millionthroughthisventure.

CHALLENGES& BARRIERS OPPORTUNITIES FORECASTS

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

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

Technological Uncertainties: The innovative nature of cleantech technologies introduces uncertainties, making it challenging to comprehensively understand their effectiveness, scalability, and longtermsustainabilityintheearlystages.

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

Renewable Energy Development: With Lithuania actively increasingitsshareofrenewableenergy,cleantechcanplay a crucial role in addressing the intermittent nature of renewable sources. This includes contributions to the developmentofenergystorage,P2Xtechnologies,andsmart gridsolutions.

Smart Meter Integration: Lithuania's deployment of smart electricity meters, totaling approximately 670,000 units, opensdoorsforcleantechtoleveragesmartmeterdata.This canenhanceenergyefficiency,optimizegridoperations,and facilitatetheintegrationofrenewableenergysources.

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 windenergypotential.

Stay tuned! ssmtp.lt

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