Acorns LT Index: How Lithuania’s Digital “Acorns” Are Shaping the Future Economy

Acorns LT Index: How Lithuania’s Digital “Acorns” Are Shaping the Future Economy

In collaboration with the open data platform Okredo, Aneli Capital has created the Acorns LT Index – a data-based indicator designed to measure the maturity and economic significance of Lithuania’s digital technology and software development sector.

From Acorns to Oaks

Startups are often defined as small, young, innovation-driven companies with high growth potential. However, to capture a broader picture, our analysis includes not only new startups but also older digital businesses. We call them “acorns” – small enterprises that, over time, may grow into strong “oaks,” creating value and contributing to Lithuania’s economy through taxes and innovation.

About the Index

The Acorns LT Index covers 7,633 Lithuanian companies operating in the digital technology and software sectors, founded between 1990 and 2025. It is based on labor taxes per employee and calculated as a weighted average with 2019 as the baseline year.

Between 2019 and 2024, the Index increased from 1,000 to 2,314, indicating that average labor taxes per employee more than doubled. This reflects salary growth and the sector’s success in attracting skilled professionals.

Key Findings

• In 2024, digital companies contributed €854.3 million in labor taxes – 7.9% more than in 2023.

• Their annual sales reached €5.8 billion, growing roughly 12% per year.

• Companies established after 2006 paid 2.4 times more labor taxes than older firms.

• The average “acorn” contributed €120,000 in labor taxes, while mature firms (founded before 2006) contributed €325,000 each.

• Using a standard startup valuation multiple (4× annual sales), the sector’s total estimated value is €23.2 billion, or around 30% of Lithuania’s GDP.

The index reflects how the average amount of labour taxes paid per employee has changed compared to the 2019 baseline.

Maturity and Renewal

The analysis also reveals the natural renewal process of the ecosystem – new companies emerge faster than older ones close. Between 2016 and 2025, new “acorns” made up about 4.17% of all new companies annually, and in 2020 the ratio of new to closed firms reached 10:1.

While younger firms show flexibility and rapid growth, only those older businesses that continue to innovate remain competitive. Continuous renewal is essential – the “forest” must regenerate: weaker trees are pruned, and stronger ones are given space to grow.

Profitability and Growth Challenges

In 2024, the most profitable “acorns” were those founded after 2006, generating €344 million in pre-tax profit, averaging €84,900 per company. Older firms (1990–2006) achieved a higher average profit per company (€197,000) but represented a 12 times smaller group.

However, the sector’s debt ratio reached 61% of total capital, suggesting that many businesses are approaching the limits of debt financing. The next growth phase will likely require a shift toward equity investment to sustain expansion.

Looking Ahead

With the rise of AI technologies and the dawn of quantum computing, Lithuanian “acorns” that invest in innovation today are poised to become tomorrow’s leaders – shaping not just the digital economy, but the nation’s broader economic landscape.

Read more insights and data in the November issue of “Investuok” magazine.

We plan to publish this index on a quarterly basis to continue tracking the evolution of Lithuania’s digital sector. Follow us on LinkedIn to stay updated on future insights and reports.