In recent years, Lithuanian startups have secured several significant investments from U.S. venture capital funds. Funding rounds raised by companies such as Nord Security, Cast AI, Ovoko, and other fast-growing technology businesses demonstrate that Lithuania’s startup ecosystem is increasingly visible to global investors. However, according to Innovation Agency Lithuania, U.S. investors typically enter at later stages rather than during a startup’s early development, investing once companies have validated their business model and are ready to scale internationally.

“Investments from U.S. venture capital funds are an important indicator of the maturity of Lithuania’s innovation ecosystem. They demonstrate that technologies and businesses developed in Lithuania are capable of competing globally and meeting the highest expectations of international investors. This is why the Ministry has brought together a dedicated team to implement initiatives that create even better conditions for ambitious startups to grow in Lithuania, enabling them to attract not only capital but also strategic partners who can accelerate international expansion, create high-value jobs, and strengthen the country’s economy,” says Edvinas Grikšas, Lithuania’s Minister of Economy and Innovation.

U.S. Investors Enter at Later Stages

According to Karolina Urbonaitė, Head of Startup Lithuania at Innovation Agency Lithuania, the investment strategy of U.S. venture capital funds differs significantly from that of local and regional investors.

“At the earliest stages of a startup’s journey, the key role is played by local and Baltic venture capital funds, business angels, and accelerators. They help founders validate their ideas, build their teams, acquire their first customers, and prepare for the next stage of growth. U.S. capital usually comes into the picture once a startup has achieved clear product-market fit, built an international customer base, assembled a strong team, and developed a business model that can scale rapidly,” says Urbonaitė.

As a result, U.S. investors most often participate in Series A, and especially Series B and Series C funding rounds. Since many American venture capital firms manage funds worth hundreds of millions or even billions of dollars, it is more efficient for them to make larger investments in a smaller number of companies that have already demonstrated strong growth potential.

In 2024, Lithuanian startup Ovoko, which develops e-commerce solutions for used car parts, announced a €20 million Series B investment led by U.S.-based venture capital firm Smash Capital.

According to Saulius Česnulevičius, late co-founder of Ovoko, investors were attracted not only by the company’s rapid growth but also by its clear competitive advantage.

“Smash Capital became interested in our company from the very beginning. Their partner, Brad Twohig, already had experience with fast-growing marketplaces, including Vinted, so he understood our business model very well. What particularly stood out was that Ovoko is much more than a marketplace. Our model combines an online marketplace, warehouse management software for sellers, and logistics. These components reinforce one another and create a clear competitive advantage. In addition, the European used car parts market remains highly fragmented,” says S. Česnulevičius.

According to the S. Česnulevičius, choosing the right investor was primarily about finding a strategic partner.

“It was important for us to find not only an investor but also a long-term partner who shared our vision for the company’s growth. In the marketplace business, one player eventually dominates the category, which means you need to invest boldly in product development, technology, logistics, and customer trust to become the market leader. Our vision aligned perfectly with Smash Capital’s. Their investment allowed us to expand across Europe more quickly and grow our team to more than 300 employees.”

From AI to Defence Tech: What U.S. Investors Are Looking For

According to K. Urbonaitė, U.S. investors are particularly interested in sectors where the addressable market is global from day one, including artificial intelligence, SaaS, cybersecurity, fintech, cloud infrastructure, and defence technologies.

One of Lithuania’s biggest advantages is that startups are forced to think internationally from the outset. Because the domestic market is small, founders quickly begin working with international customers, testing sales across multiple markets, and building globally competitive products.

Another important advantage is capital efficiency.

“In Lithuania, companies can build strong engineering teams, develop products, secure their first international customers, and prepare for larger funding rounds with significantly less capital than would typically be required in Western Europe or the United States. This is a major competitive advantage from an investor’s perspective,” says K. Urbonaitė.

She also notes that U.S. investors have already backed Lithuanian startups across a wide range of sectors—from marketplaces and consumer platforms such as Vinted and Ovoko, to cybersecurity, artificial intelligence, and infrastructure SaaS companies including Nord Security, Cast AI, and Oxylabs, as well as deeptech, biotechnology, and climate technology companies such as Atrandi Biosciences and PVcase.

U.S. Investors Bring More Than Capital

According to K. Urbonaitė, the value of U.S. investors extends well beyond funding.

“For many Lithuanian startups, the U.S. is one of the most important target markets. An investor’s network can significantly accelerate access to customers, strategic partners, and potential acquirers. In addition, American investors have extensive experience scaling technology companies globally—from preparing for future investment rounds and international expansion to executive recruitment and even IPO readiness.”

S. Česnulevičius agrees, emphasizing that one of the greatest benefits is having regular access to people who have already helped build globally successful technology companies.

“Smash Capital introduced us to businesses across the U.S. and Europe that became valuable partners for discussions on marketing, sales, and business strategy. Brad Twohig’s extensive investment experience has been particularly valuable in strategic discussions, especially when evaluating different growth scenarios and exploring new business expansion opportunities.We see their contribution as that of a true strategic partner rather than simply a financial investor.”

How Do U.S. Investors Discover Lithuanian Startups?

According to K. Urbonaitė, Lithuanian startups most often come onto the radar of U.S. investors through local venture capital funds that know the founders and can make introductions, as well as through international conferences, accelerator programmes, relationships with U.S. customers, and strategic partnerships.

“U.S. participation in a Lithuanian startup’s funding round is usually a sign of maturity. These investors step in when a company has moved beyond the idea stage but still has significant growth potential ahead. At this point, they provide not only larger investments but also something money alone cannot buy—market access, strategic expertise, valuable connections, and opportunities to accelerate global growth,” K. Urbonaitė concludes.

Speaking about how Lithuanian startups can attract U.S. investors, S. Česnulevičius stresses that results matter more than the pitch itself.

“The strongest signal to investors is solid business performance and clear evidence that your product works beyond Lithuania. Founders need to explain in simple terms why their company has the potential to become a market leader. Warm introductions through existing investors, fellow founders, or business partners certainly help open doors more quickly, but after that, everything depends on the quality of the business. It’s also important not to approach as many funds as possible, but rather those whose investment stage, experience, and philosophy truly align with your company’s vision.”