10 Estonian startups to keep an eye on in 2026 and beyond!

Estonia continues to be a hotbed of tech innovation in Europe, with a thriving startup ecosystem attracting attention. Known for its digital-first approach and supportive e-government initiatives, the small Baltic nation is home to promising young companies. These startups are leveraging advanced technologies, from AI to defense, to address global challenges. BetterPic, founded in Tallinn in 2023, is an AI-powered platform for generating professional headshots. The platform allows users to create studio-quality images from a few selfies, with over 150 visual styles available, delivering 4K images in under an hour. The startup has secured €2.1 million in funding. BetterPic places a strong emphasis on privacy and data protection, encrypting images, never using them for AI training, and permanently deleting them after delivery. Frankenburg Technologies, established in Tallinn in 2024, is a defense technology startup focused on air defense and missile systems. The company aims to reduce costs and accelerate production times, designing systems for faster and large-scale manufacturing. Frankenburg Technologies combines missile system design with an AI-based situational awareness and targeting platform. They have raised €5.5 million to support product development and expand engineering and production capabilities. Estonia's success in attracting and nurturing startups demonstrates the region's commitment to digital transformation. These emerging companies are likely to contribute to Europe's broader digital economy, particularly in AI applications and defense technology. They also show potential for impacting digital sovereignty by providing European alternatives to US tech companies.
Curated and translated by Europe Digital for our multilingual European audience.
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Mangopay
Mangopay is a payment infrastructure provider specializing in payments for marketplaces and platforms. It offers virtual wallet technology for managing funds, enabling features such as split payments, multi-currency support, and KYC/AML compliance. Key functionalities include automated payouts, transaction monitoring, and customizable payment flows. This service is primarily aimed at businesses that manage marketplaces, crowdfunding platforms, and sharing economy models and require complex payment solutions. Mangopay distinguishes itself by offering a flexible and scalable payment solution specifically designed for platform-based business models, allowing them to control cash flows and streamline payment processes.
Scaleway
Scaleway is a European cloud computing provider offering a range of services, including servers, storage, and networking solutions. Key features include bare metal servers, virtual machines, object storage, and managed Kubernetes. It's suitable for developers, startups, and businesses seeking cloud infrastructure for web applications, data storage, and various other workloads. Scaleway distinguishes itself through competitive pricing and a focus on European data sovereignty, with data centers in France and the Netherlands.
