Hedman Law Firm is a long-time supporter of the Estonian startup ecosystem. In January 2023, they are supporting the success of the Estonian Startup Awards 2022.
Before we dive into the past, present, and future of our startup scene - how are you doing? How was 2022 for Hedman?
Thanks to our clients, Hedman entered the top 1% of Estonian companies in 2022, achieving business daily Äripäev’s “Gasell” status (a gazelle in Estonian since gazelles are the fourth-fastest land animals) - company’s growth speed, business flexibility, and innovation courage are considered in attributing this status. We are quite proud of that!
What was the most impactful startup case on Hedman’s table in 2022? Can you share any details?
To name just a few:
The €35 million investment advisory work of Katana, a business software start-up serving 1300 manufacturing companies in 80 different countries.
Striga, the first financial technology company in Estonia to be licensed under the new law to operate in virtual currency.
Advising Yaga, Estonia’s preferred new and second-hand goods trading platform, on a €2.2 million investment.
Advising Haut.AI, a developer of a software solution for skin care based on artificial intelligence, in a cooperation agreement with Ulta Beauty, the largest beauty retailer in the US.
KWOTA, the leading Estonian carbon credits marketplace, raised a €1,5 million seed round to digitize the carbon savings from material recycling. The company aims to establish a global standard to validate and trade carbon emissions savings from using recycled materials in production.
At Latitude59 2022, Hedman contrinuted to the prize pool of the L59 Pitch Competition
You are very involved in the startup world - sponsoring and supporting wherever possible. Tell us about an exciting trend that you see coming up in 2023. What kind of change could it bring along?
Based on Atomico + Dealroom’s recent “State of European Tech” report, the number of deals ($100M+) and mega-rounds ($500M+) have increased within the last five years, indicating potential opportunities for large-scale investments.
The findings also revealed that despite the market’s challenges this year, 2022 is on track to fall short of 2021’s record-breaking levels by only a tiny margin. The year-on- year decline was 18%, which is notable in the face of a challenging macroeconomic environment.
Finally, having considered the short-to-mid-term impacts of a financial downturn and the longer-term prospects of the market, 44% of respondents in the study feel more optimistic about European tech now than they were twelve months ago.
The same survey also revealed that Estonia tops European startup charts by investments per 1M people and GDP and startups and unicorns per capita. We hope to see this trend continue!
“The same survey also revealed that Estonia tops European startup charts by investments per 1M people and GDP and startups and unicorns per capita. ”
Another interesting trend we observed concerns crypto - in the light of a few recent scandals - especially the FTX fiasco, the sector quieted down for a minute. But the pace has picked up again, and companies are applying for licenses, etc.
Name a challenge that you see the Estonian startup ecosystem currently struggling with. What could be a solution?
With the forthcoming European Union regulation on markets in crypto-assets, MiCA, the challenge, and opportunity for the Estonian financial sector is to be a leader in the field in the European Union, both in terms of business models and technology development.
If you could pick any Estonian startup to become a major global success overnight, who would it be and why?
Not one but two startups with strong women founders - Gelatex Technologies and LightCode Photonics.
Gelatex is a very forward-thinking startup focusing on material technology and specialized in developing and producing nanofibrous materials for various applications such as cultured meat, wound care, tissue engineering, energy storage, and filtration.
Lightcode is a Tartu-based tech startup developing breakthrough technology for mobility. They aim to change how a robot looks at the world by building a compact LiDAR-class 3D camera that will transform the autonomous mobility sector, particularly autonomous cars powered by satellite navigation.
At The Estonian Startup Awards 2022, you are giving over the award for The Revenue Hack of 2022. How does this category resonate with you?
This category resonates with us because it is essentially for scaleups. And scaleups have already validated assumptions about their market. A scaleup knows that if they invest x into the business, they will receive y in return.
The product/market factor is huge because it gives scaleup companies the green light to scale their operation dramatically with an almost guaranteed return on investment (ROI). And with this award, we are showcasing exciting Estonian scaleups, deservedly so.
Onwards and upwards!
Meet the team! In 2023, Hedman Law Firm celebrates 30 years in business and being the #1 startup advisor for the past decade.
About Hedman Law Firm:
Dedicated to advising technology-driven and digitally-oriented companies, Hedman law firm’s team of 19 works closely with companies, entrepreneurs, and investors in the technology sector. The firm’s key strengths are fundraising, corporate law, mergers and acquisitions, data protection, intellectual property, technology law, virtual currency services, and corporate relocations. Could Hedman Law Firm speed up your journey to success? Head on to their web page to find out and get in touch.
Read more about Estonian Startup Awards 2022.