Small tech countries, in contrast to giant technological countries, have many advantages – a peaceful course of life, leisured and easy-going lifestyle, great prospects for development, etc. Combining these advantages with other attractive conditions, we have studied the world’s small tech countries that have the greatest potential and provide desirable opportunities for startups, investors and entrepreneurs to develop ideas and reach new achievements.
The world is already decentralized, every corner of the world can become the next successful destination for startups and giant firms in terms of technological and business development․ Image credit: Shutterstock.
Combining these advantages with other attractive circumstances, we have studied the world’s small tech companies that have the greatest potential and provide great opportunities for startups, investors and businessmen to develop and achieve new achievements.
The information and communications technology industry has been growing at a fast pace all over the world. Now, when connected technologies allow everyone to create and build solutions without barriers, it’s possible both for developed and developing economies to be a part of digital transformation and bring more solutions to the world.
According to The Business Development Bank of Canada (BDC), businesses are becoming more and more dependent on tech, and investments in the sector keep accelerating. The expected growth in 2022 is 5.3%, and the five-year growth is positive.
In addition to the existing tech companies, innovative startups are appearing to offer more solutions. Statistics show that now there are 1.3 million tech startups around the world compared to 305 million startups in any industry.
These startups are focused on different tech industries. The biggest trend remains software and data. Other startup trends are healthcare, social and leisure, fintech and e-commerce, retail, transportation, and beyond.
The role of new technologies in small countries
Small countries have seen an exponential level of tech growth due to globalization, foreign trade, investments, and improving expertise, in many cases growing into advanced economies. New technologies have a profound effect on the economy, culture, and education of low and middle-income nations which now have the opportunity to not only adopt technologies but to innovate and add value by themselves.
Now, when connected technologies allow everyone to create and build solutions without barriers, it’s possible both for developed and developing economies to be a part of digital transformation and bring more solutions to the world. Image credit: Shutterstock
The tech industry helps people in developing countries improve their lives. Due to the created solutions, people can use better and cheaper products. For example, smartphones and mobile banking allow access to financial services in areas where there are no bank branches.
Another huge benefit is that technology creates high-paying jobs. In this age of globalization, large communication and information tech companies based in more developed countries divide their production process into tasks that can be completed from different parts of the world. Thus, big companies take advantage of lower costs, and small countries expand their job market.
Tech-savvy people and teams from different places come together to bring innovative ideas to life. Due to digital transformation, Silicon Valley isn’t the only place where innovations of global significance happen. Emerging markets are becoming more and more competitive, getting ahead of much bigger countries in some cases.
5 small tech countries where the innovation industry is booming
Small tech countries often become hotspots and leaders of technological innovations, attracting investments and being home to inspiring startups. Let’s look into some of them standing out due to their fast growth and future perspectives.
Estonia
The tech sector has an essential role in Estonia. For the last decade, it has been the most significant aspect of the country’s economic growth. Reports show that the ICT sector has brought 30% economic growth to this Baltic country.
Estonia is one of the small European countries that, having separated from the Soviet Union relatively recently, managed to create such a business environment that attracts thousands of startups and entrepreneurs from all over the world. Image credit: Shutterstock.
Estonia is the fastest growing nation by establishing tech companies in Europe. Estonia has a solid place in our list of top small tech countries and has already attracted many investors and entrepreneurs from all over the world as a country with a steadily growing tech industry. For 5 years, the startup sector here has seen a 30% year-over-year growth. In 2020, Estonian startups raised €1 billion in sales from which €450 M was secured through funding, and the other half was paid by customers for provided products and services.
The government of Estonia supports technological growth and ensures a business-friendly environment in many ways. For example, a government program called “e-residency” allows entrepreneurs from different parts of the world to establish and manage their businesses online. The government approach is one of the main drivers of the growth of world-changing ideas. Among the most successful Estonian startups are:
Veriff
Veriff is AI-powered identity verification and KYC solution which offers online businesses to prevent fraud in a regulatory-compliant way. The company was established in 2015 in Tallinn. According to the latest data, its value is $1.5 billion. In Series C financing closed in January 2022, Veriff raised $100 M.
QANplatform
This is a hybrid blockchain platform that allows developers to build blockchain-based applications and run business processes on blockchain quickly.
The company’s story began in 2019 when a group of blockchain enthusiasts came together around a mission to boost the growth of blockchain use cases.
askRobin
Founded in 2017, askRobin is a credit marketplace built for unbanked people in Latin America. The Estonian startup helps users to find loan offers through an interactive chatbot. AskRobin has over 200 financial entities in Mexico, Colombia, Argentina, and Peru.
Rwanda
According to the World Economic Forum, technology and innovation have been at the heart of Rwanda’s national transformation for more than twenty decades. The country is one of Africa’s leading innovation hotspots. It ranks 8th among the startup ecosystems across the Middle East and Africa, and fourth in Africa in general.
The efforts of the Rwandan government have achieved great results in the last decade. Rwanda is already a well-known tech hub in Africa, creating the kind of tech eco-system that attracts the interest of investors and startups. Image credit: Shutterstock.
Currently, 3% of Rwanda’s annual gross domestic product (GDP) comes from the tech industry. The government plans to increase investments in the information and communications industry to 10% of GDP over the next decade. In 2018, the government of Rwanda and the African Development Fund established Rwanda Innovation Fund to invest in innovative businesses in Rwanda and East Africa by providing capital and business support.
Here are some of the most promising and successful startups in the country:
Kasha
Located in Rwanda and Kenya, Kasha provides e-commerce services for women’s health, personal care, and beauty in emerging markets. The company was founded in 2016 and raised over $3.65 M in Series A funding from SwedFund, FinnFund, DFC, and Mastercard. Kasha’s mission is to transform the way women in emerging economies receive health and personal care products to improve their lives.
OffGridBox
OffGridBox is an all-in-one system with the mission to provide clean water and renewable energy in remote areas. Founded in 2016, the company uses innovative technological solutions for over 2 bln people in the world to access energy and clean water on a daily basis, safeguard water quality and availability, and promote a healthy lifestyle. The company partners with different organizations including USAID, Power Africa, United Nations Development Program, and others.
PesaChoice
PesaChoice is a fintech company founded in 2014 in Kigali. The company allows employees to access their salaries easily. PesaChoice aims to bridge the gap between the salary payout and unexpected expenses for people with limited access to institutional credit.
Luxembourg
Being one of the world’s smallest countries with a population of less than 1 million, Luxembourg still plays an essential role in the global digital transformation. It’s one of the top European countries for ICT specialists. With nearly 7% of the total workforce in 2021, Luxembourg ranks third.
Luxembourg is the most international country in the EU, and poised to stake its claim to European tech industry dominance [Tech.eu]. The technology industry is quite important in the Luxembourg economy and provides large revenues as well as a large influx of human resources. Image credit: Shutterstock.
According to the World Intellectual Property Organization, in 2021, the country ranked 23rd on the global innovation index among 132 economies. The country’s high credit ratings, stable infrastructure, and government programs offer a beneficial environment for entrepreneurs and investors. One of the programs aiming to support the industry is the national research and innovation strategy started in 2019. It aims to encourage research and innovation activities and achieve its Luxembourg 2030 vision. The goal is to become a sustainable, knowledge-driven, diverse, and trusted digital society by 2030.
Luxembourg is the fourth in Europe in terms of startups per capita. And it’s one of the most attractive locations on the list of top small tech countries of the world. The number of startups in the country exceeds 600.
Some of the successful startups in Luxembourg are:
Aiva Technologies
Founded in 2016, Aiva Technologies is an AI platform that assists in the process of music creation. Using the platform, users can create personalized and emotional soundtracks in different styles. Aiva closed its seed financing round in June 2020, raising €1.5 million.
kodehyve
kodehyve is a data-driven collaboration platform to increase the efficiency and transparency of real estate development. The company was founded in 2020 and is one of Luxembourg’s promising startups.
Travelsify
The company offers a Travel Product DNA platform to enable personalized search. Powered by AI, Travelsify characterizes destinations, hotels, vacation rentals, and restaurants based on customer desires through Explainable AI technology. The company has raised €7 million since its foundation in 2016.
Armenia
In Armenia, the information and communications technology (ICT) sector has been growing essentially in recent years. In 2018, the tech sector accounted for 7.4% ($12 bln) of Armenia’s Gross Domestic Product (GDP), while in 2013 tech’s share was 3.6%.
Yerevan, Armenia. In recent years, Yerevan has become the location of famous technology companies, and hundreds of companies are either establishing branches or moving here. Photo by PixMeta.com
Increasing its presence, Armenia has become a new hub in the world’s tech industry. According to a 2021 report by the International Trade Administration, the Armenian ICT industry is growing 20% annually.
The government supports the growth of the tech industry and tech-related education programs in various ways. To improve the competitiveness of Armenian tech companies in the world, government agencies cooperate closely with international donors.
Due to the favorable business environment, human talent, tax incentives and breaks, innovations, operating costs, and other factors the country attracts the attention of investors, entrepreneurs, and foreign companies that open branches in Armenia.
Armenia, being a landlocked country and having closed borders on both sides, has been able to create a technological environment where innovative companies are able to develop without obstacles and attract both investments and large numbers of relocators from different countries. Image credit: Shutterstock.
The tech sector is one of the main drivers of the economy. In April 2022, tech companies employed 20,000 people. Last year tech startups raised $27 M in investments.
Among the most successful startups in Armenia are:
Krisp
Founded in 2017, Krisp is an AI platform that removes all the background noise in online communications with a single click. The company has a mission to empower professionals to hold effective meetings no matter where they work. Krisp has raised $9 M from investors. The platform has won several awards including Golden Kitty on Product Hunt and Webby Awards.
Picsart
Picsart is the largest creative platform in the world with its downloads exceeding 1 billion. It provides editing tools and templates to allow users to create photo and video designs easily. The company was founded in 2011 by Armenian entrepreneurs. Picsart is headquartered in Miami, Florida, and has offices in Yerevan, Beijing, Tokyo, and other locations. In 2021, Picsart reached unicorn status with its valuation hitting $1 billion.
CodeSignal
The mission of CodeSignal is to help companies Go Beyond Resumes and hire high-quality and diversified technical talent. The company was founded in 2015 establishing its first office in Yerevan, Armenia. In several funding rounds, CodeSignal raised $87.5 M in total. Its technical interview and assessment solutions are used by many leading companies such as Uber, Robinhood, Meta, Zoom, Quora, Reddit, and others.
Singapore
Located in South Asia, this small country is one of the most technologically advanced places in the world. According to a survey by KPMG, Singapore ranks first as a global innovation hub outside Silicon Valley.
The phenomenon of Singapore’s development and progress has made many people think. And technology has long been the cornerstone of Singapore’s development, and there is hardly a sector in Singapore that is not integrated with innovative solutions. Image credit: Shutterstock.
The information and communication industry in Singapore is one of the main drivers of the country’s economy. Data shows that in 2021, the sector’s GDP amounted to 28.4 billion Singapore dollars. In 2012, it was 14.01 bln SGD.
The country is beneficial for the tech companies to run their operations, It offers a robust economy, support for startups, low tax rates, and more. The government of Singapore supports the growth of the tech industry through different programs and initiatives. Being part of Startup SG Equity, it co-invests in startups to aid their development.
Singapore has a strong startup economy with a growing number of unicorns. Among the most successful tech startups that originated in the country are:
Matrixport
Matrixport is a digital asset financial services platform founded in 2019. Two years after the launch, in 2021, the company became a crypto unicorn. The platform offers different crypto services such as buying, investing, lending, borrowing, earning interest, and trading.
Advanced Intelligence Group
Founded in 2016, Advanced Intelligence Group is an AI-focused tech company with a mission to build an ecosystem of products and services to serve consumers, enterprises, and merchants. In 2021, the company ranked first on LinkedIn’s Top Startups List in Singapore. Closing its $400 M Series D financing round, Advanced Intelligence Group joined the unicorn club of Singapore.
Carro
Carro is the largest used car marketplace in Southeast Asia. The company offers car ownership services online. Carro is based on AI technologies and pricing algorithms to transform the way of buying and selling cars. The company was founded in 2015 and raised $500 M since then. In 2021, it became a unicorn.
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Our list of top small tech countries can serve as a guide for entrepreneurs, investors and organizations from around the world who want to expand or enter new markets or just relocate to a new calm place to work remotely and organize their non-hurry lifestyle.
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