Lithuania’s Startup Scene Shows Resilience in the Face of Looming Russia Threats

Amid Russian threats to punish Lithuania over blocked rail shipments to the enclave of Kaliningrad, Lithuanians today are bracing themselves for retaliation from Moscow. Yet against that backdrop of Russian aggression, Lithuanian startups seem to be managing well, raising millions in funding during the ongoing crisis.

Read more: FinTech-Friendly Lithuania Raises Alarms After Russia’s Invasion of Ukraine

Earlier this month, Vilnius, Lithuania-based EdTech startup BitDegree raised $1 million for its blockchain-powered educational platform Learnoverse. Prior to that in May, Lithuanian fintech kevin, which provides an A2A payment infrastructure intended to replace card transactions, raised $65 million in a Series A funding, only six months after netting $10 million in a seed round.

Related news: Lithuanian FinTech kevin Nets $65M for A2A Infrastructure

Like many FinTechs in Lithuania, kevin uses an electronic money license issued by the country’s central bank to serve other markets in the European Economic Area.

In fact, the digital-forward Bank of Lithuania (BoL)’s liberal licensing regime has been key to the country’s FinTech success. By streamlining the licensing process, and allowing FinTechs to obtain licenses within three months, the BoL has not only supported the country’s homegrown startups like kevin, but also attracted FinTechs from across Europe.

Read also: Blender Buys a Lithuanian Credit Union for $5.8M, Eyes Digital Bank Status

For example, Revolut also runs a large part of its European business through a Lithuanian license, a decision the company made in the wake of the U.K.’s decision to leave the European Union in 2016, similar to other U.K. businesses migrating their EEA-focused operations to the country’s capital, Vilnius.

Learn more: As Brexit Looms, FinTech Firms Scramble For Lithuanian Licenses

Besides Revolut, open banking API startup Yapily also bolstered its presence in the city in direct response to the U.K.’s decision to leave the European Union, while eWallet DiPocket has also found Vilnius to be a fertile environment for FinTech innovation after Brexit.

So, in the face of Russian threats to cut off Europe’s supply of gas, FinTechs and startups in the Baltic states, more broadly, could be some of the first affected if the Kremlin followed through on them.

But Lithuania appears to be coping well so far.

From the country’s role as a strategic license-base for U.K. companies in need of a European foothold to its emerging position as a leader in the field of AML tech for EU compliance, Lithuanians living in the shadow of Russian aggression seem to refuse to allow the Kremlin’s rhetoric to detract from cross-European trade and business collaboration.

Further reading: 5 EU Startups Making Waves in the AML Technology Space

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