EIF IN
LITHUANIA
Investing in the future of Lithuanian SMEs
Small and medium-size enterprises are the heart of the Lithuanian economy.
Representing 99% of all businesses and more than two thirds of the workforce, Lithuania's 275,000 SMEs are responsible for driving innovation as well as spurring on growth, and their daily routine is what ensures the competitiveness of the Lithuanian economy. But to do that, they often need finance.
At the same time, as the smallest actors in the economy, they are often the hardest hit when the economy encounters turbulence, which is why it is so crucial for them to have financial options in order to maintain and eventually grow their businesses.
At the EIF, our mission is to improve access to finance for small businesses across the EU. In addition to building a sustainable venture capital ecosystem through dedicated financial instruments in Lithuania, we have been supporting Lithuanian SMEs using a broad range of instruments, including many tailored to the needs of the Lithuanian market and designed with the Lithuanian government and local authorities.
As a result, we've been able to support more than 7,800 Lithuanian businesses, ranging from companies specialising in graphic design, bespoke printing solutions, and energy-saving solutions for large building, making sure they have the financial fuel they need to pursue their ambitions.
Our intention is to continue to extend this type of support to the Lithuanian market, making access to finance easier as we collectively move towards a greener, digital and more inclusive Europe.
Success stories
The Knotty Ones
Success stories
The Knotty Ones
“Knitting is in our blood, ”explains Akvile Meskauskaite-Dobrajs, Co-founder & COO of The Knotty Ones. “Our mission is to preserve and promote this craft, and at the same time create career opportunities for knitters, doing something they love.”
The Knotty Ones delivers knitwear to global consumers and businesses. What truly sets this company apart is how they do it. Combining their products with both hand-made and machine-made production lines, they hire knitters who live in rural areas, offering a work-from-home opportunity. Knitters receive a package of material and equipment, do their magic and then ship the goods to the warehouse where they are sent off to the end consumers or retailers.
“Our knits are always produced in small batches which could mean less profit for us but ensures we never have leftovers. We only make what we know we’ll sell,” says Akvile. Looking ahead, the company wants to replicate its model of working with local artisans also in the US. “It’s about growing but also about having an even greater impact for artisans,” she adds.
Sector Textile
Purpose Working capital; growth
CGTrader
In an increasingly digitalised world, many businesses need graphic design, augmented reality or 3D modelling to help build their online presence. But 3D modelling can be an expensive, time-consuming, and difficult. “This is where we come in,” explains Dalia Lasaite, co-founder and CEO of Lithuanian 3D model source CGTrader, which offers a stock marketplace of over a million pre-existing models in many sectors (architecture, food, plants, space, vehicles).
With over 8.4 million 3D artists, 2 million 3D models, and 100+Fortune 500 clients on the CGTrader marketplace, the company has grown exponentially since its launch in 2011 and today boasts big name clients (Google, Shopify) and big investors (Intel Capital). Today, CGTrader offers the most commercially attractive royalties for designers, and an open space for talented 3D designers to showcase their work, making the company a truly global community of creators and users.
Sector ICT
Purpose Scale-up, Hiring staff
Saules Graza
Tomas Šimanauskas used to work as a solar engineer in London but returned to his home country of Lithuania to set up Saules Graza, one of the leading electricity companies in the country.
Saules Graza design and install solar power plants, from small household installations to larger industrial solar parks. “Lithuania is a good place to develop solar energy because we have good connections in the country, also connections to Poland, Sweden, Latvia. This infrastructure goes back to the times of nuclear power. At the moment we produce around 30% of our electricity, but in a few years, we could be exporters,” explains Tomas.
In 2023, the company grew 40% and similar growth is expected this year too. “With high electricity prices, everyone now wants solar panels,” Tomas adds. And, there is good reason to be optimistic for the future of renewable energy in Lithuania: “We have lots of land to build solar parks. It’s a country with 3m population and an area twice the size of Belgium, so there’s lots of opportunity.”
Sector Energy
Purpose Cashflow
Laurema
“About twenty years ago, my husband was working in an advertising agency and had a client who needed silk-screen printing services. At that time, there was a lack of such services in Lithuania, so I helped the client with the design side and got thinking about doing this as a living. So, from one idea and one little project, I’ve gone to having lots of ideas and many big projects,” says Jurate Kasperaviciene, CEO and co-founder of Laurema.
Laurema is a design and manufacturing business specialising in printing stickers and labels on different surfaces. “We use silk-screen printing technology to produce heat transfers – textile labels to decorate or mark clothes.” With some of the largest European brands as clients, Laurema prides itself on its cooperative spirit, “We work very closely with our suppliers and clients. Every time that we visit a potential client, we also visit one of our older clients to strengthen our partnership. It helps us to better understand their needs and desires and remain one step ahead of the market,” explains Jurate.
Sector Textile printing
Purpose Cashflow, New equipment
Key figures
Figures as of December 2024
Over
of EIF financing
Transactions with financial intermediaries
Equity investments since inception
Guarantees support since inception
made available for
Lithuanian businesses
Mandates in focus
The EIF continues to deploy capital in Lithuania under a wide range of strategic programmes and mandates. Below are brief summaries of our main initiatives in Lithuania.
UAB ILTE
The EIF is partnering with Lithuania’s national development institution, UAB ILTE, to provide €191.6m to non-bank credit providers for investment in companies across the country. This initiative aims to accelerate the development of capital markets in Lithuania, making joint investments in up to five private credit funds, ultimately generating financing for Lithuanian companies. These planned investments will help foster a senior private credit market in Lithuania, providing an alternative source of financing and diversifying funding options for businesses.
InvestEU
The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It is helping to mobilise private investments for the EU’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU Programme brings together under one roof the multitude of EU financial instruments previously available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
RCR
The EIB’s Risk Capital Resources (RCR) is the core pillar of the EIF’s equity activity. It has enabled us to pursue our equity strategy in the venture capital and growth segments for more than 25 years. In 2024, RCR accounted for about 24% of our equity activity, committing €1.7bn to financial intermediaries.
EFSI
The European Fund for Strategic Investments formed part of the EU’s Investment Plan for Europe, launched by the European Commission in 2015. EFSI addressed market gaps in financing - whether in infrastructure, research, energy efficiency or risk finance for SMEs – and mobilised private investment into these areas. Through EFSI the EIF deployed €10.5bn in resources of the European Commission, the EIB and the EIF to improve access to finance for SMEs and small midcaps.
EGF
The European Guarantee Fund was created by the EIB Group with contributions from Lithuania and other Member States to protect companies struggling in the crisis caused by COVID-19. With almost €25bn in guarantees, the EGF allowed the EIB and EIF to swiftly offer companies, mostly SMEs and mid-caps, access to loans, guarantees, asset-backed securities, capital and other financial instruments. The EGF forms part of the package of recovery measures put in place by the EU, with the objective of providing a total of €540bn to support the hardest hit sectors of the European economy.
REPowerEU
The EU launched REPowerEU in 2022 to reduce dependence on fossil-fuel imports and accelerate the green transition. To support the plan, in October 2022, the EIB Group developed a package of measures focussing on renewable energy, energy efficiency, electricity networks and on deepening its engagement in green innovation and breakthrough technologies. Under REPowerEU, the EIF will invest €4.5bn by 2027 through EIF equity products.
Baltic Innovation Fund
The Baltic Innovation Fund (BIF) is a fund-of-funds initiative of €130m launched by the EIF in close co-operation with the Baltic national promotional institutions – KredEx (Estonia), Altum (Latvia) and Invega (Lithuania) to boost equity investments made into Baltic SMEs with high growth potential. BIF 1 was launched in 2012 and is fully committed. BIF 2, a €156m fund-of-funds initiative building on the success of its predecessor programme, continues to sustain investments into private equity and venture capital funds focused on the Baltic States over a period of 5 years – following its signature in 2019 – to boost equity investments into SMEs with high growth potential.
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