Past unicorn glories won't save us: Why the Estonian startup ecosystem needs fresh blood

TALLINN - The Estonian startup sector, frequently lauded for its record-breaking concentration of unicorns per capita, is facing a critical bottleneck: a deficit in raw numbers of new, active builders.

Sitting down on the sidelines of the Latitude59 conference in Tallinn, Tim Vaino, an early-stage investor with Practica Capital, discusses why the ecosystem cannot survive on past trophies alone, how targeted grassroots initiatives are trying to bridge the gap, and why hackerspaces are crucial for the next generation of builders.

The Numbers Game: Moving Beyond the Legacy Narrative

Tarmo Virki: What’s the biggest problem you see in the Estonian startup scene today?

Tim Vaino: I feel like I'm repeating myself on this, but we spend a lot of time talking about our past successes — how many unicorns we have per capita, what we built years ago, and so on. Don’t get me wrong, that legacy is incredible, and it’s a crucial part of the Estonian narrative.

But we need to deliver more. We need to get more people actively involved in the industry to create the next wave of success stories. Right now, the passion and the raw energy are there, but the sheer volume of new builders is missing. At the end of the day, innovation is a numbers game.

Sourcing Hidden Talent in a Shrinking Nation

Tarmo Virki: The nation’s population isn't exactly booming. Where do you actually find these new people?

Tim Vaino: The people are out there. A great recent example is Ruum, the hackerhouse launched in Estonia last autumn. It brought a massive wave of completely new faces into the ecosystem — people nobody had heard of before. They were university students or hobbyists who had been quietly building things at home or in school.

So, the issue isn’t a lack of people. The issue is that they aren't integrated into the community yet. They haven't developed the habit of turning their ideas into scalable tech businesses. That is what we need to get better at. As an investor, my goal is to find them, back them, show them the ropes, and help them start building.

Grassroots Actions: "Kolmapäev" and Summer Residencies

Tarmo Virki: That’s the big-picture challenge. What practical steps are you taking right now to bring these young people into the fold?

Tim Vaino: Outside of my day-to-day work with Practica Capital, I dedicate my free time to finding and supporting this younger demographic. Right now, I’m launching a new initiative called Kolmapäev (Wednesday). We are running it as a pilot for the next month, with plans to officially re-launch it full-time in September if it succeeds.

The concept is simple: in partnership with Startup Garage and TalTech University, we gather every second week at the Telliskivi Hub. We bring enthusiastic youth into the room alongside established mentors from the Estonian Founders Society who willingly share how they got their start. It’s a free-form format designed for inspiration, discussion, and direct integration. Startup Estonia has been a massive help in getting this off the ground.

Tarmo Virki: Ruum originally ran in Krulli last autumn. Are you evolving that format into a summer program now?

Tim Vaino: Yes, we are launching a summer residency at the same location, but it’s going to be significantly bigger and better. Skaala is backing us by providing even more physical space. We've also brought on a heavy-hitting lineup of venture partners, including 2C Ventures, Specialist VC, and Practica Capital.

This time, we’ve secured the entire fourth floor. While the previous Ruum setup could only accommodate 30 people, we can now fit about 120.

Our strategy this summer is also broader. We want to create the ultimate environment where anyone can come and deliver. We are working closely with all the major institutions—TalTech, Tallinn University, Tartu University, BFM, and the Estonian Academy of Arts—to spread the word. There is honestly no better time than the summer break for university students and high school graduates to come out, get their hands dirty, and give entrepreneurship a real shot.

To learn more or apply for the summer residency, visit www.ruumtallinn.com