In the first quarter of 2025, Estonian deep tech startups saw their total turnover increase by 10%, surpassing the €100 million mark. At the same time, these companies paid €15.4 million in taxes, a 14% rise compared to the same period last year.

The success of deep tech companies is largely due to their increasing ability to attract investment. Since the development cycle of research-intensive products can take up to ten years, rapid access to funding—both from private capital and public innovation support—is critical. In recent years, more than half of all startup investments have been directed specifically toward deep tech development. This has helped companies reach revenue growth faster. By the end of Q1 2025, there were 167 deep tech startups operating in Estonia.

The top revenue-generating companies included Milrem (€18.8 million), Defsecintel (€17.5 million), Threod Systems (€8.6 million), Starship Technologies (€6.1 million), and Cleveron (€5.9 million). Defense tech, artificial intelligence, and green energy solutions remain among the most active areas. In total, deep tech startups raised €23.4 million in funding during the quarter. The largest investment went to a hydrogen technology company (€11 million), followed by firms in energy solutions and industrial technology.

During the same period, these startups paid €16.2 million in labor taxes and employed 2,415 people—17% of Estonia’s entire startup workforce. The largest employer was Milrem with 308 employees, followed by Starship, Threod Systems, Skeleton, and Cleveron. The revenue figures for deep tech startups are based on quarterly VAT declarations, not annual financial reports.

Estonia’s deep tech sector is steadily progressing. Growth in turnover, strong investment capability, and a rising impact on the labor market show that this is no longer just an experimental field but a solid and expanding industry.