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# Baltic investments grew 20% in 2025, pre-seed investments in Estonia more than doubled -report
- URL: https://fomo.observer/baltic-investments-grew-20-in-2025/
- Published: 2026-02-04T08:58:59.000Z
- Updated: 2026-04-11T11:32:00.000Z
- Description: Practica Capital and FIRSTPICK published annual funding report for the region
- Author: Tarmo Virki
- Tags: Newsletter, #Migrated-1775906933246, #Import 2026-04-11 11:30

Investments in Baltic startups grew by a total of 20% in 2025, with AI-related investments dominating capital allocation across all stages, according to the 2025 investment report from Practica Capital and FIRSTPICK.

In addition to the AI boom, defence, energy, and infrastructure-adjacent technologies gained traction.

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![](https://storage.ghost.io/c/08/7f/087f88ab-cb17-44cc-928d-9cfca14a3fb9/content/images/2026/04/f91825db-49c4-4118-9bc8-ff4e9b11e21f_1498x716-1.png)

"Structurally, the Baltics are starting to specialise. Lithuania has become the region’s company-formation engine, Latvia is unlocking early-stage capital and fixing the first-cheque gap, and Estonia concentrates scale capital and deep tech + defence tech. Together, that creates a full startup lifecycle across three markets - a clear sign the ecosystem is maturing,” said Tim Vaino, investment manager at Practica Capital.

Estonia did experience a decline in the funding rounds raised in 2025 but we did see some rare but welcomed increase in growth capital rounds most notably Pactum’s $54 million Series C funding round, Starship’s $50 million Series C round and Blackwall’s €45 million Series B raise. The report also signifies that Pre-seed activity has found its footing again after its 2024 downturn and Estonia continued to lead the region in average seed round size.

Defence, energy, and hardware-adjacent software were the darlings of investor interest as deep tech and dual-use companies took a significant share of deployed capital, with companies like Frankenburg, Wayren and LendurAI flying the blue, black and white in that particular category.

After strong revenue growth and continued M&A activity the ecosystem is showing positive signs of maturity with its proof of a sustained pipeline of technically complex, scale-ready companies and experienced founder-led companies with a willingness to build.

You can read the full report [here.](https://practica.vc/media/Baltic%5FStartup%5FFunding%5FReport.pdf?ref=fomo.observer)

[While the U.S. Partied in 2025 Like It Was 2021, Estonia ... Built Factories? TALLINN - If you only looked at the global headlines, 2025 was the year the party returned. According to the latest Dealroom 2025/2026 Global Tech & VC Wrapped report, global venture capital investment surged to $434 billion, a 27% year-on-year increase.![](https://storage.ghost.io/c/08/7f/087f88ab-cb17-44cc-928d-9cfca14a3fb9/content/images/2026/04/5ada50dc-a818-4d51-8d78-b97e6964978a_256x256-49.png)Fomo.ObserverTarmo Virki![](https://storage.ghost.io/c/08/7f/087f88ab-cb17-44cc-928d-9cfca14a3fb9/content/images/2026/04/2b340942-d0c6-42ef-bd28-95a0cc4c724a_942x696.png)](https://www.fomoobserver.com/p/while-the-us-partied-in-2025-like?ref=fomo.observer)

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