Estonia Has 1 Startup per Every 2364 People — Here’s Their Secret
A combination of low regulation by the government, innovative digital documentation and international appeal.
While the rest of Europe wants to attract big players to their economies, like macro-businesses, international brands, big financial institutions and gigantic market competitors, there is one small country investing heavily in small enterprises and building an attractive ecosystem for promising startups from all over the globe, that nation is Estonia, a champion in its own right.
According to Estonian news website ERR, startups collected €246 million in just the first half of 2018, and also generated 388 new jobs in that same period. All of this while paying €21 million in taxes, this represents an increase of 25 percent when compared to 2017.
Key facts to know about Estonia’s successful run
- There are over 550 startups in the country.
- With revenues of €275 million until June.
- 15 big transactions made since the start of the year.
- €16.3 million is the average size of those transactions.
- Estonia is championing a recent visa for digital entrepreneurs, facilitating the influx of foreign investment.
- Tech is an important sector for Estonian society, so much that kids learn to code since the first grade.
- Internet access is a human right in this Eastern European nation.
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Famous for being the birthplace of companies like Playtech, TransferWise and Skype, the startup rush is taking the country by storm. With only 1.3 million inhabitants and the most unicorns (young companies with more than a billion euros in value) per capita, Estonia wants to position itself as a global leader in technological innovation by fueling the entrepreneurial flame non-stop.
For further reading, follow Adam Rang, Kaspar Korjus, Alex Wellman, e-Residency and make sure to visit the official E-Residency blog on Medium.
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