The Baltic startup ecosystem raised a total of €340 million in venture capital and growth equity during Q2 2026, according to data compiled by Startup Lithuania, Startup Estonia, and the Latvian Startup Association. The figure represents a 28% increase over Q2 2025 and marks the strongest quarterly fundraising result for the region in three years, driven primarily by AI-integrated service companies and climate technology ventures.
Lithuania led the region with approximately €165 million across 47 disclosed deals, followed by Estonia at €120 million across 39 deals, and Latvia at €55 million across 22 deals. The deal count increase was more modest than the capital increase, indicating that average deal sizes grew — consistent with the maturing of several companies that raised seed rounds in 2023-2024 and are now executing Series A and B rounds.
AI integration was a theme across virtually every sector represented in the quarter's deals, but the clearest standalone category was AI-native B2B services, with eight companies in this segment raising a combined €89 million. Fintech, logistics, and HR technology applications were the most common domains, with use cases ranging from automated compliance checking to freight matching and candidate screening.
Climate technology attracted €78 million across 14 deals, with the largest single investment being a €35 million Series B for a Lithuanian grid flexibility software company that helps utilities manage variable renewable energy supply. The EU's climate targets and associated subsidy programs continue to create a favorable environment for climate-adjacent startups, with regulatory tailwinds substituting for the commercial revenue that more mature sectors would require to justify similar funding.
International investor participation remained high, with Nordic and German funds accounting for the majority of capital by volume. US-based venture investors participated in four deals — a marked increase from 2025's one or two per quarter — reflecting growing awareness of the Baltic region's engineering talent pool and relatively competitive company valuations compared to Western European equivalents.