Neither Tallinn nor Warsaw may be Silicon Valley, but in both capitals it’s starting to feel like it. The 100 largest technology companies in Central and Eastern Europe, according to the Digital Poland Foundation, are now worth 117 billion US dollars—up 10 per cent in a year.

Arguably, however, the real action is not at the top, where Estonian fintech Wise and Polish e-commerce giants dominate, but among the ‘dragons’—firms valued between 250 million and one billion US dollars, whose collective worth has more than doubled in four years.

Fintech and e-commerce firms continue to dominate, accounting for 57 per cent of the total value of the top 100 companies.

Wise remains the region’s most valuable tech firm, followed by Poland’s logistics enabler InPost and e-commerce platform Allegro. This triumvirate reflects the sector’s focus on solving practical problems for both consumers and businesses across fragmented European markets.

The persistence of fintech and e-commerce at the summit is hardly surprising. These sectors benefit from network effects and the region’s ongoing digital transformation. Polish fintech XTB, which offers online investment platforms, sits comfortably in the top ten, whilst newer entrants like PayPo demonstrate that there remains room for innovation in financial services.

Should we expect IPOs?

Perhaps more telling is the composition of the top tier. Of the ten most valuable companies, only two—Lithuania’s second-hand fashion marketplace Vinted and cybersecurity firm Nord Security—remain privately held. This raises an intriguing question: are initial public offerings (IPOs) on the horizon?

The mathematics of venture capital suggest they may be. Private equity investors typically seek exits within five to seven years, and many of these firms have been maturing in private hands for some time. Vinted, valued at over five billion US dollars, has reached the scale where public markets become an attractive option for both liquidity and growth capital. Nord Security, operating in the fast-growing cybersecurity sector, faces similar pressures.

Yet the IPO environment remains challenging. Public market investors have been less forgiving of loss-making growth companies since 2022, and several regional champions have seen their valuations tumble post-listing. Romania’s UiPath, the robotic process automation specialist, has shed 20 billion US dollars in value since its peak, whilst Allegro has dropped five billion US dollars. These cautionary tales may give private companies pause.

The regional landscape reveals interesting geographic patterns. Poland dominates by sheer numbers, with 39 companies representing 37 per cent of total value. Estonia punches far above its weight relative to population size, hosting 12 companies including the sector leader Wise. This reflects Estonia’s early embrace of digital governance and its success in creating a startup-friendly regulatory environment.

Lithuania’s emergence as a significant player, with companies like Vinted and period-tracking app Flo Health (valued at 1.2 billion US dollars), demonstrates how smaller markets can nurture global champions when they focus on solving universal problems. Croatian sports betting platform Supersport’s inclusion suggests that even traditionally overlooked markets are producing scalable businesses.

Rise of the dragons

The growth of mid-sized companies—those ‘dragons’ worth 250 million to one billion US dollars—tells perhaps the most encouraging story. Their collective capitalisation has more than doubled in four years, increasing by 138 per cent. This suggests a maturing ecosystem where companies can achieve substantial scale without necessarily becoming unicorns, creating a more stable foundation for long-term growth.

“CEE’s digital companies have reached a key inflection point,” notes Wojciech Świercz of consultancy Arthur D. Little. “Their local markets are too small for them to continue growing, so the natural step is for them to expand internationally.”

This internationalisation drive is evident across sectors, from cybersecurity firms serving global clients to e-commerce platforms expanding beyond their home markets.

The sector’s resilience is notable given the broader global economy. Whilst total capitalisation remains 12 per cent below the 2021 peak of 133 billion US dollars, this largely reflects the correction in public market valuations rather than fundamental business weakness. Only three companies departed the ranking due to deteriorating financial conditions—a remarkably low failure rate.

Software-as-a-Service (SaaS) companies represent 31 of the top 100, reflecting the region’s strength in B2B software development. The cybersecurity sector, though smaller with just five companies, showed the strongest growth with a 94 per cent increase in value to 8.3 billion US dollars. This mirrors global trends as organisations prioritise digital security.

Maintaining momentum

The question facing these digital champions is whether they can maintain momentum as they scale internationally. Historical patterns suggest that successful regional tech companies often relocate to larger markets—a brain drain that the region can ill afford.

ElevenLabs and Grammarly, both of which left this year’s ranking due to ownership or headquarters changes, illustrate this challenge.

Yet the signs are encouraging. Companies are increasingly sophisticated in their approach to international expansion, and the region’s competitive advantages—skilled workforces, lower costs, and EU market access—remain compelling.

As Radzym Wójcik of law firm Baker McKenzie observes, regional companies are, “increasingly well prepared to negotiate with international funds, and are receiving bigger funding flows, at richer valuations”.

The next 12 months will likely provide clarity on the IPO question. If public markets stabilise and investors regain appetite for growth stories, Vinted and Nord Security may well test the waters.

Their success—or failure—will influence a generation of entrepreneurs across the region. For now, Central and Eastern Europe’s digital champions continue to build, quietly creating value in a world increasingly hungry for their solutions.

Photo: Dreamstime.