Fresh data out of Estonia's startup sector has shown that the country's e-Residency programme has become an integral part of its startup ecosystem: about 48% of startups founded in recent years were connected to an e-resident.
In 2024 and 2025, Estonian e-residents founded 77 startups. Altogether, around 1,500 startup companies are currently operating in Estonia, 43% of which are connected to e-residents. Most e-resident startups operate in the IT sector, with programming being the most popular business area. A company is considered to be connected to the e-Residency programme if it was founded by an e-resident or if an e-resident has served as a member of its management board.
Liina Vahtras"Estonia is the preferred choice for many startup entrepreneurs with bright ideas precisely because of e-Residency, which allows a company to be launched quickly, completely digitally, and with minimal bureaucracy."
"No other other country currently offers such a convenient way to establish and manage a company at this scale, especially when the founders are located in different countries and the goal is to start operating internationally right away," commented Liina Vahtras, managing director of the e-Residency programme and member of the management board of Enterprise Estonia (EIS).
According to Vahtras, the e-Residency programme is focused specifically on high-growth-potential companies, so-called "future large businesses," in order to increase the program’s economic value for the country.
"The primary goal of startup entrepreneurs among e-residents is to grow their companies quickly. Estonia’s tax system, along with its highly effective startup and business services ecosystem, is a major advantage here. Having opened the door to foreign talent and capital through e-Residency, we are continuing to work toward ensuring that these companies remain in Estonia to grow, create jobs, and generate profits that contribute to our economy," Vahtras added.
In 2025, startups founded by e-residents or connected to e-Residency also attracted significant investments.
According to data collected by the Estonian Founders Society, Estonian startups raised more than €91 million in funding in the first quarter of 2026. Of the 18 startups involved, seven were either founded by e-residents or connected to e-Residency. These include Flashka, where two out of three founders are e-residents and which raised €1 million in pre-seed funding, and Validfor, a provider of document validation software, which raised over €1 million.
Deeptech startup Softquantus has also raised more than half a million euros. Funding was also secured by defense technology companies founded by e-residents, including Farsight Vision, MaXon Systems, and Babayte.
"Foreign founders are not just an addition to our ecosystem, they are its growth engine. Estonia's startup community has always been international, but now we are seeing something new: foreign founders with proven business models, including Ukrainians who have built truly resilient companies under difficult circumstances, are reaching Estonian investors faster than ever before," says Madis Lehtmets, managing director of the Estonian Private Equity and Venture Capital Association (EstVCA).
Madis Lehtmets"Farsight Vision is a great example. This defense technology startup has raised over seven million euros from international and Estonian funds. This is no coincidence: investors have realized that a startup with foreign founders operating in the European market through Estonia is currently one of the most attractive bets."
According to Vahtras, investments in artificial intelligence as well as defense and dual-use technologies show no signs of abating. "This is also a priority for EIS and e-Residency is contributing to the development of this sector by attracting international talent and capital," Vahtras underscores.
Some AI companies that have recently raised funding also include Maxon Systems, Babayte, and Softquantus, Vahtras notes. And although defense technology startups founded by Ukrainians may not always publicly disclose the amounts raised, their success confirms the strategic importance of the sector.
Liina Vahtras"To support innovative startups, we also launched an innovation loan this year, enabling developers of innovative technologies to borrow up to five million euros in order to give new development projects an additional boost for growth."
A good example of international reach is this year’s Latitude59 startup pitching competition: out of 465 applications received, 67 teams included at least one e-resident. Getpin, founded by e-residents, was included in the TOP 7.
E-Residency was launched at the end of 2014 with the aim of providing foreign nationals secure access to Estonia's e-services and the ability to establish and manage Estonian, and therefore European, companies. Estonian e-residents establish every fifth new company in the country annually, and over time, e-residents have created more than 40,000 Estonian businesses.
The total economic contribution of the e-Residency programme to date has been €433 million (including labor taxes, special income taxes paid by companies founded by e-residents, and state fees). In addition, entrepreneurs who are e-residents spend more than €15 million annually in Estonia by consuming business services offered by local companies. The e-Residency programme is implemented by Enterprise Estonia.
