Unicorn Companies in Estonia in 2024

Skype

• Valuation: $8.5B
• Industry: Telecommunications
• Investors: eBay, Silver Lake Partners, Microsoft
• Unicorn Milestone Date: 09/12/2005

About

Skype is a telecommunications application that revolutionised online communication. Founded in 2003 in Estonia by Niklas Zennström and Janus Friis, Skype quickly became one of the country's first unicorn startups, making it a notable example among unicorn companies in Estonia. It provides voice calls, video calls, instant messaging, and file sharing services over the internet. Skype's innovative peer-to-peer technology initially allowed it to offer free Skype-to-Skype calls, disrupting traditional telecom services.

Target Audience

Skype targets a broad audience, including:

• Individual users seeking free or low-cost communication options.
• Small to medium-sized businesses requiring cost-effective conferencing solutions.
• International users looking for affordable long-distance communication.
• Remote workers and distributed teams needing collaboration tools.
• Educational institutions for distance learning purposes.

Business Model

Skype operates on a freemium model, offering basic services for free while charging for premium features:

• Free Services: Skype-to-Skype voice and video calls, instant messaging, and file sharing.
• Skype Credit: Pay-as-you-go option for calling landlines and mobiles worldwide.
• Subscription Plans: Unlimited or fixed-minute plans for calling specific countries.
• Skype Numbers: Virtual phone numbers for receiving calls from non-Skype users.
• Skype for Business: Advanced features for corporate clients.
• Advertising: Display ads and sponsored content within the application.
• Hardware Partnerships: Collaborations with headset and phone manufacturers.

Key Offerings

• Voice and video calling
• Instant messaging
• File sharing
• Screen sharing
• Group video conferencing
• Skype Number service
• Skype Translator for real-time language translation
• Skype for Business (enterprise solution)
• Mobile applications for various platforms

Key Management

• Niklas Zennström: Co-founder
• Janus Friis: Co-founder

Playtech

• Valuation: $2.4B
• Industry: Online Gambling
• Investors: Publicly traded on London Stock Exchange
• Unicorn Milestone Date: 09/10/2019

About

Playtech, founded in 1999 by Israeli entrepreneur Teddy Sagi in Tartu, Estonia, is a leading provider of software and services for the online gambling industry. It is recognised as one of Estonia's first unicorns and has grown to become the world's largest international designer, developer, and licensor of web and mobile application software to the digital gaming industry. Playtech offers a comprehensive suite of products including online casino, poker, bingo, sports betting, and live dealer games, among others. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Target Audience

Playtech targets:

• Online gambling operators
• Land-based casinos transitioning to online platforms
• Governments and regulated agencies
• Players seeking a seamless and engaging gambling experience

Business Model

Playtech operates primarily on a B2B model, providing technology and services to gambling operators. The company employs a revenue share model, where it earns a percentage of the revenue generated by its software and services. This model includes structured agreements that bundle platform, content, and services. Playtech also invests heavily in research and development, allocating around 20% of its B2B revenue to innovate and enhance its offerings.

Key Offerings

• PAM+ (Player Account Management): A platform that integrates player engagement and promotion tools, responsible gaming features, and out-of-the-box integrations with other providers.
• Online Casino: A diverse portfolio with over 1000 games developed by eight global content studios.
• Sports Betting: Comprehensive solutions for both retail and online sports betting, including a fully integrated omnichannel offering.
• Live Dealer Games: Real-time, interactive gaming experiences with multiple studios and branded gaming rights.
• Bingo and Poker: Software solutions for online bingo and poker rooms.
• Mobile Gaming: Applications and platforms optimized for mobile devices.
• Financial Trading: Services through its TradeTech Group, offering financial trading platforms.

Key Management

• Mor Weizer: CEO
• Andrew Smith: CFO

Wise

• Valuation: $2.4B
• Industry: Financial Technology
• Investors: Publicly traded on London Stock Exchange
• Unicorn Milestone Date: 09/10/2019

About

Wise, formerly known as TransferWise, is a fintech company based in Estonia that specialises in international money transfers. Founded in 2011 by Taavet Hinrikus and Kristo Käärmann, Wise aims to make global money transfers cheaper, faster, and more transparent compared to traditional banks. As one of the prominent unicorn companies in Estonia, Wise has grown rapidly, achieving unicorn status and listing directly on the London Stock Exchange in July 2021.

Target Audience

Wise primarily targets:

• Individuals: People who need to send money internationally, such as expats, travellers, and those with family abroad.
• Small Businesses: Companies that conduct international transactions, pay overseas employees, or manage suppliers in different countries.
• Freelancers and Self-Employed: Professionals who receive payments from clients in different currencies.

Business Model

Wise's business model revolves around providing low-cost, transparent international money transfer services. Unlike traditional banks that often add hidden fees and markups to exchange rates, Wise uses the real mid-market exchange rate and charges a small, upfront fee. The company's key strategies include:

• Local Accounts: Wise holds bank accounts in various countries. When a user sends money, it is transferred to Wise's local account in the sender's country, and then an equivalent amount is paid out from Wise's local account in the recipient's country. This avoids cross-border fees.
• Volume and Scale: By handling a large volume of transactions, Wise can keep costs low and pass the savings onto customers.
• Technology and Efficiency: Wise uses advanced technology to automate and streamline the transfer process, making it faster and more efficient than traditional banks.

Key Offerings

• Personal Money Transfers: Send money internationally at low cost with transparent fees.
• Wise Business Account: Manage international payments, hold multiple currencies, and pay invoices globally.
• Multi-Currency Account: Hold and convert between multiple currencies, and receive payments like a local in various countries.
• Debit Card: Spend money globally with the Wise debit card, which automatically converts currencies at the real exchange rate.

Key Management

• Kristo Käärmann: Co-founder and CEO
• Taavet Hinrikus: Co-founder and Chairman

Investment Timeline

• 2011: Founded and launched with initial investment of €2,000.
• 2014: Raised $25 million in Series B funding led by Peter Thiel’s Valar Ventures.
• 2015: Secured $58 million in Series C funding.
• 2017: Raised $280 million in Series E funding.
• 2019: Reached a valuation of $3.5 billion after raising $292 million.

Bolt

• Valuation: $7.4B
• Industry: Mobility
• Investors: Sequoia Capital, Fidelity Management, Didi Chuxing, and Daimler
• Unicorn Milestone Date: 05/13/2018

About

Bolt is an Estonian technology company founded in 2013 that has evolved into a "super-app" offering various mobility and delivery services. Originally launched as a ride-hailing platform, Bolt has expanded its offerings to become one of Europe's fastest-growing technology companies. The company's mission is to make urban mobility more affordable, convenient, and environmentally friendly.

Target Audience

Bolt caters to a diverse audience, primarily focusing on urban dwellers and travellers aged 25-34. Its services are designed for:

• Commuters seeking affordable transportation options.
• Individuals looking for convenient food and grocery delivery.
• Businesses requiring efficient delivery solutions.
• People interested in micro-mobility options like e-scooters and e-bikes.

Business Model

Bolt operates on a platform-based business model, connecting service providers (drivers, couriers, restaurants) with consumers. The company generates revenue through various channels:

• Commission: Bolt takes a percentage of each transaction made through its platform, whether it's a ride, food delivery, or scooter rental.
• Surge Pricing: During high-demand periods, prices increase to balance supply and demand.
• Subscription Services: Bolt offers subscription plans for frequent users, providing discounts and benefits.
• Advertising: Partnering restaurants and businesses can promote their services within the app.
• B2B Services: Bolt provides business travel solutions and delivery services for companies.

Key Offerings

• Ride-hailing services (Bolt, Bolt XL, Bolt Plus)
• Food delivery (Bolt Food)
• Grocery delivery (Bolt Market)
• Micro-mobility solutions (e-scooters and e-bikes)
• Car-sharing services
• Business travel solutions

Key Management

• Markus Villig: Founder and CEO
• Martin Villig: Co-founder

Investment Timeline

• 2020: Raised €100 million in funding
• 2021: Secured €600 million in funding, valuing the company at over €4 billion
• 2022: Raised €628 million, increasing valuation to more than €7.4 billion

Pipedrive

• Valuation: $1.5B
• Industry: Customer Relationship Management
• Investors: Vista Equity Partners, Bessemer Venture Partners, Insight Partners, Atomico, DTCP, Rembrandt Venture Partners
• Unicorn Milestone Date: 11/14/2020

About

Pipedrive is a cloud-based customer relationship management (CRM) software company founded in 2010 in Estonia. It became a unicorn in 2020, reaching a valuation of over $1 billion, adding to the roster of successful unicorn companies in Estonia. Pipedrive's CRM platform is designed specifically for sales teams, focusing on simplicity and ease of use to help businesses manage their sales pipelines more effectively.

Target Audience

Pipedrive primarily targets small to medium-sized businesses, particularly sales teams and professionals looking for an intuitive and efficient CRM solution. Its user-friendly interface and sales-focused features make it especially appealing to companies that want to streamline their sales processes without the complexity of more extensive enterprise CRM systems.

Business Model

Pipedrive operates on a software-as-a-service (SaaS) subscription model. Customers pay a monthly or annual fee to access the CRM platform, with pricing tiers based on features and the number of users. This recurring revenue model provides Pipedrive with a stable income stream and allows for continuous product development and improvement. The company also generates revenue through add-ons, integrations, and premium support services. Pipedrive's focus on user experience and sales-specific functionality helps in customer retention and word-of-mouth marketing, reducing customer acquisition costs over time.

Key Offerings

• Sales pipeline management.
• Lead and deal tracking.
• Email integration and automation.
• Customisable dashboards and reports.
• Mobile apps for iOS and Android.
• AI-powered sales assistant (Pipedrive Insights).
• Integration with third-party tools and apps.
• LeadBooster add-on for lead generation and qualification.

Key Management

• Dominic Allon - CEO
• Agur Jõgi - CTO
• Timo Rein - Co-founder

ID.me

• Valuation: $1.5B
• Industry: Digital Identity Verification
• Investors: Viking Global Investors, PSP Partners
• Unicorn Milestone Date: 03/23/2021

About

ID.me is a digital identity verification company that achieved unicorn status in 2021. Co-founded by Estonian Tanel Suurhans, ID.me provides a secure online identity network that allows individuals to prove their identity once and then use that verified credential across multiple platforms and services. The company's technology meets federal guidelines for consumer authentication and is approved as a NIST 800-63-3 IAL2 / AAL2 credential service provider.

Target Audience

ID.me serves various groups, including:

• Consumers seeking simplified online identity verification
• Government agencies
• Healthcare organisations
• Retailers and e-commerce businesses
• Military personnel, veterans, students, teachers, nurses, and first responders looking for exclusive discounts

Business Model

ID.me operates on an "identity interchange" model, where they monetise trust and convenience. The company verifies user identities and allows users to control their data, deciding which organisations can access it. ID.me charges businesses and organisations for using their identity verification services, while offering free accounts to consumers. They also generate revenue through partnerships with retailers, providing verified group-specific discounts (e.g., military, student, teacher discounts) and taking a cut of the transactions.

Key Offerings

• Digital identity verification
• Single sign-on capabilities across multiple platforms
• Group affiliation verification (e.g., military, student, teacher)
• Exclusive discounts for verified group members
• Identity Gateway for organisations to integrate multiple third-party IDPs
• Multi-Factor Authentication
• Document Verification
• Compliance Monitoring

Key Management

• Blake Hall: Co-founder and CEO
• Matt Thompson: Co-founder
• Tanel Suurhans: Co-founder and CTO

Gelato

• Valuation: $1B
• Industry: E-commerce Technology
• Investors: Insight Partners, SoftBank Vision Fund 2, Dawn Capital
• Unicorn Milestone Date: 04/18/2020

About

Gelato is a Norwegian-Estonian unicorn startup that provides a global print-on-demand platform for e-commerce businesses. Founded in 2007 by Henrik Müller-Hansen, Gelato became Estonia's eighth unicorn in April 2020. As part of the growing list of unicorn companies in Estonia, the company offers a software solution that enables businesses to produce and deliver customised print products globally without owning any fixed assets or inventory.

Target Audience

Gelato caters to creators, entrepreneurs, small businesses, startups, enterprises, freelancers, nonprofit organisations, and government entities looking for a fulfilment partner to sell customised products online to global customers.

Business Model

Gelato operates on a print-on-demand model, connecting e-commerce sellers with a vast network of local print providers worldwide. Here's how it works:

• Integration: Sellers integrate their online stores with Gelato's platform using various e-commerce integrations.
• Product Creation: Sellers design custom products using Gelato's tools or upload their designs.
• Order Processing: When a customer places an order, it's automatically sent to Gelato.
• Local Production: Gelato routes the order to the nearest print partner in its network, reducing shipping times and costs.
• Fulfillment and Delivery: The local print partner produces and ships the product directly to the end customer.
• Payment: Gelato handles payments, taxes, and cross-border issues.

Key Offerings

• Apparel (T-shirts, hoodies, sweatshirts)
• Wall art (posters, canvas prints, framed prints)
• Mugs
• Photo books
• Cards and calendars
• Notebooks
• Business stationery
• Phone cases
• Tote bags

Key Management

• Henrik Müller-Hansen: Founder and CEO

Veriff

• Valuation: $1.5B
• Industry: Identity Verification
• Investors: Tiger Global, Alkeon, IVP, Accel
• Unicorn Milestone Date: 01/26/2022

About

Veriff is an AI-powered identity verification startup based in Estonia. It recently achieved unicorn status by raising $100 million in Series C funding, making it Estonia's ninth unicorn. Veriff specialises in providing comprehensive identity verification solutions to combat fraud and ensure secure user onboarding for businesses globally.

Target Audience

Veriff's target audience includes:

• Financial institutions: Banks, credit unions, and fintech companies needing secure customer verification.
• E-commerce platforms: Online retailers requiring identity checks to prevent fraud.
• Telecommunications: Companies needing to verify user identities for service activation.
• Sharing economy: Platforms like ride-sharing or home-sharing services requiring user authentication.
• Gaming and gambling: Online gaming and betting sites needing to verify player identities.
• Healthcare: Providers needing to verify patient identities securely.

Business Model

Veriff operates on a B2B (business-to-business) model, offering its identity verification services to other businesses. The company provides a range of pricing plans tailored to different business needs, from small startups to large enterprises. Veriff's revenue is generated through subscription fees and usage-based pricing, where businesses pay based on the number of verifications performed. The company emphasises scalability, security, and compliance with international regulations, making it an attractive solution for businesses across various industries.

Key Offerings

• Instant Verification: Quick and accurate identity verification processes.
• Document Coverage: Extensive database covering various types of identity documents.
• Language Support: Verification services available in 48 unique languages and dialects.
• Automation: 98% check automation rate powered by AI.
• User-Focused: 95% of genuine users get verified successfully on their first try.
• Compliance: Adherence to CCPA/CPRA, GDPR, SOC2 type II, ISO 27001, and WCAG Accessibility Guidelines.
• Streamlined Onboarding: Data extraction and pre-filling forms during user onboarding.

Key Management

• Kaarel Kotkas: Founder and CEO
• Janer Gorohhov: Co-Founder and Chief Product Officer

Investment Timeline

• Series A: Raised $7.7 million in 2018.
• Series B: Raised $15.5 million in early 2020.
• Series C: Raised $100 million in January 2022, achieving unicorn status.

Glia

• Valuation: $1B
• Industry: Digital Customer Service
• Investors: Insight Partners, Wildcat Capital Management, RingCentral Ventures
  
• Unicorn Milestone Date: 03/21/2022

About

Glia is an Estonian-American unicorn startup that provides a digital customer service platform for financial institutions. Founded in 2012, Glia reached unicorn status in 2022, becoming Estonia's tenth unicorn with a valuation exceeding $1 billion. Joining the ranks of notable unicorn companies in Estonia, the company offers a unified interaction platform that combines various communication channels to enhance customer service experiences in the digital-first world.

Target Audience

Glia primarily serves financial institutions, including banks, credit unions, and insurance companies. Their platform is designed for organisations committed to providing exceptional customer service using cutting-edge technology.

Business Model

Glia operates on a Software-as-a-Service (SaaS) model, offering its digital customer service platform to financial institutions on a subscription basis. The company's value proposition lies in its ability to streamline customer interactions across multiple channels, reducing costs for businesses while improving customer satisfaction. Glia's platform integrates with existing financial systems, allowing for seamless management of digital, voice, and AI interactions without losing context. By providing a unified solution that combines human touch with AI capabilities, Glia helps financial institutions enhance their customer experience, increase efficiency, and drive conversions.

Key Offerings

• Messaging, Video, Voice, and CoBrowsing capabilities
• AI-powered virtual assistants
• Seamless channel transitions (ChannelLess™ technology)
• Screen sharing and co-piloting features
• Integration with online/mobile banking providers
• Business logic and contextual insights for identifying high-value prospects
• Unified reporting and analytics

Key Management

• Dan Michaeli: CEO and Co-founder
• Justin DiPietro: COO and Co-founder