Baltic FinTech deal activity more than halves in Q1-Q3 2023 YoY

• Baltic FinTech companies raised a combined $177m in Q1-Q3 2023, a 71% reduction from the same period in 2022.
• Baltic FinTech deal activity totalled at 37 deals in Q1-Q3 2023, a 55% drop from Q1-Q3 2022
• Estonia was the most active country in the region with 19 deals

Baltic FinTech has continued to underperform in Q3 compared to the previous year. Baltic FinTech companies secured a total of $177m in funding during the first three quarters of 2023, marking a 71% decrease compared to the corresponding period in 2022. Baltic FinTech witnessed a total of 37 deals in the first three quarters of 2023, reflecting a 55% decline compared to the same period in 2022.

Nord Security, a global leader in internet privacy and security solutions, raised the largest FinTech deal in the Baltics during Q1-Q3 2023 after their $100m investment, led by Warburg Pincus, a premier global growth investor. With this fresh injection of capital, the company intends to diversify its product lineup and accelerate its growth through strategic partnerships and acquisitions. This strategic move is expected to enhance security measures for both individual and business customers. Nord Security offers a wide range of products, including the renowned NordVPN service, NordPass password manager, NordLayer business network access security software, and NordLocker encrypted cloud storage. Before securing external funding, Nord Security operated independently for more than a decade, demonstrating a resilient and diverse revenue model. In 2022, the company expanded its product portfolio by partnering with Surfshark, a prominent player in consumer cybersecurity. Surfshark offers a comprehensive suite of products, including a consumer VPN, Antivirus, Alert online data leak detection system, Alternative ID online identity protection tool, Search private search tool, and Incogni automated personal data removal system.

Estonia was the most active country in the region with 19 deals, a 51% share of deals. This was followed by Lithuania which had 15 deals, a 41% share of deals. Latvia had three deals.

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