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Estonia is one of the best places in Europe to start a tech company 
I got to that conclusion after visiting many times over the past few of years.
Here's why: (thread)
I got to that conclusion after visiting many times over the past few of years.
Here's why: (thread)
Estonia has 1.3 million people and four million hectares, half of which is forest.
After independence in 1991 (!), Estonia built itself up using a digital-first approach under the umbrella of a program and a series of policies called @e_estonia
After independence in 1991 (!), Estonia built itself up using a digital-first approach under the umbrella of a program and a series of policies called @e_estonia
But for a country of 1.3m and a bunch of trees, Estonia has a disproportionately strong tech industry.
- 48 startups per 100k people (9x higher than EU average)
- Every 93rd working person in Estonia has been somehow involved with startups.
- 515m raised from 2014-2019
- 48 startups per 100k people (9x higher than EU average)
- Every 93rd working person in Estonia has been somehow involved with startups.
- 515m raised from 2014-2019
Estonia has some very strong winners ( @TransferWise, @pipedrive, @boltapp, @Veriff) and a surprisingly good tech scene.
No wonder the president went on a humble-bragging spree last year. https://twitter.com/KerstiKaljulaid/status/1012637533925191680
No wonder the president went on a humble-bragging spree last year. https://twitter.com/KerstiKaljulaid/status/1012637533925191680
But why is Estonia punching above its weight?
Four reasons:
1/ The obvious one: their digital identity and the fact that technology runs at its core.
2/ Necessity. No oil, no thriving manufacturing industry and a small, shrinking population.
Four reasons:
1/ The obvious one: their digital identity and the fact that technology runs at its core.
2/ Necessity. No oil, no thriving manufacturing industry and a small, shrinking population.
The perfect example is @e_Residents
The best way to increase a shrinking population is to redefine "population".
The e-Residency program contributed:
- 58,000 e-residents from more than 150 countries,
- 7,200 companies
- +€25m in tax revenue
(2019 data)
The best way to increase a shrinking population is to redefine "population".
The e-Residency program contributed:
- 58,000 e-residents from more than 150 countries,
- 7,200 companies
- +€25m in tax revenue
(2019 data)
3/ Size.
Estonia small, making it an order of magnitude easier to achieve talent density.
The sheer concentration of tech talent in Tallinn is mind-blowing.
If you sit in a random coffee shop in Telliskivi (hipster area) on a Saturday, and everyone around is talking startups.
Estonia small, making it an order of magnitude easier to achieve talent density.
The sheer concentration of tech talent in Tallinn is mind-blowing.
If you sit in a random coffee shop in Telliskivi (hipster area) on a Saturday, and everyone around is talking startups.
4/ Great immigration policy
One of the biggest barriers to a positive talent loop is immigration. Estonia nailed it: a few years ago @startupestonia launched Startup Visa
- Non-EU founders can move and start a company for €1.8k
- Hiring non-EU talent is easy, fast and cheap
One of the biggest barriers to a positive talent loop is immigration. Estonia nailed it: a few years ago @startupestonia launched Startup Visa
- Non-EU founders can move and start a company for €1.8k
- Hiring non-EU talent is easy, fast and cheap
This is the single, most important reason why the Estonian talent loop works.
Whenever you remove restrictions and facilitate entry into a system (a country), the flux of atoms (tech people) will increase
Whenever you remove restrictions and facilitate entry into a system (a country), the flux of atoms (tech people) will increase
Let's be clear: Estonia isn't perfect.
For instance, the lack of Growth capital is a thing. But it's changing.
In 2013, companies raised $24 million. In 2018, they 10x'ed that.
Trajectory trumps lack of capital.
For instance, the lack of Growth capital is a thing. But it's changing.
In 2013, companies raised $24 million. In 2018, they 10x'ed that.
Trajectory trumps lack of capital.
Many things (mostly positive) have been written about Estonia.
But I wanted to surface this anyway because Estonia is much like The Lord of the Rings – widely hyped, but still under-appreciated.
If you are considering a place to start, consider Tallinn.
But I wanted to surface this anyway because Estonia is much like The Lord of the Rings – widely hyped, but still under-appreciated.
If you are considering a place to start, consider Tallinn.
