Last year was a success for startups in Estonia. Total sector turnover increased by 43%; companies attracted record investment, employment, and taxes paid. Seven companies were sold during the year, and another unicorn firm was established in Estonia, i.e. it is estimated by investors to be worth more than a billion dollars.
It was a particularly good year for Pipedrive, founded in Estonia, which develops sales management software, said Rangar Sass, a company co-founder. Pipedrive sold its majority stake in Vista Equity Partners at the end of the year, making it a unicorn.
All economic indicators confirm that the sector is becoming taken seriously by the industry. According to Startup Estonia’s chief executive Eva Peterson, the sector’s total turnover increased by almost 40% to €800 million. The amount of labour taxes rose by almost a quarter to €100 million.
According to the Ministry of Finance, the entire information technology sector and several other sectors were successful last year. Ministry of Finance analyst Madis Aben stated that demand for information and communication services and goods increased due to the specifics of the coronavirus crisis. “For several years now, the sale of software and especially export has been a strong supporter of the Estonian economy. Public administration, health, education – places with more work – also have a positive impact. Wages and employment declined in areas where there was less work”, Aben noted.
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