The spotlight shined bright on Tallinn tonight as the Estonian Startup Awards celebrated a pivotal year of resilience. It was a night that signaled a changing of the guard for the Baltic tech powerhouse. Kaarel Kotkas, founder of Veriff, took top honors as Founder of the Year, cementing his status as a titan of industry. Yet, the biggest news happened off the stage. Triin Hertmann officially stepped up as President of the Estonian Founders Society and launched FOMO Observer. This bold media outlet promises to strip away the PR gloss and expose the gritty reality of building companies.
Celebrating Resilience and New Leadership
The Estonian Startup Awards have evolved beyond a simple pat on the back. They now serve as a barometer for the health of a digital nation. The community selected winners from over 500 nominees.
This year’s ceremony highlighted a shift from celebrating paper valuations to honoring sustainable growth. Kaarel Kotkas accepting the Founder of the Year award represents this maturity. Veriff has transitioned from a high-growth startup into a global identity verification leader.
The event was co-organized by LIFT99, the Estonian Founders Society, and Startup Estonia. It brought together the heavyweights of the region.
Key Partners Supporting the Ecosystem:
- Bolt: Mobility and delivery giant.
- Swedbank: Financial infrastructure.
- Nordic Ninja: Deep tech investment.
- Estonian Ministry of Defence: Highlighting the new focus on security.
Triin Hertmann is the new face leading this powerful group. She is a veteran operator with two decades of experience.
She was the second hire at Wise, formerly TransferWise. She helped build the unicorn from the ground up. Later, she became a prolific angel investor with over 35 companies in her portfolio. Her move to President of the Founders Society signals a focus on practical operational excellence over hype.
Triin Hertmann speaking at Estonian Startup Awards stage
A New Voice for the Ecosystem
The most intriguing development of the night was the launch of FOMO Observer. Estonia has long been a darling of international tech press. However, it lacked a dedicated local voice that understood the nuances of the sector.
Hertmann co-founded the publication with seasoned journalist Tarmo Virki. Their mission is to hold up a “mature mirror” to the industry.
Mainstream broadsheets often miss the mark. They focus on funding rounds and big exits. They rarely capture the near-death experiences that define entrepreneurship.
Hertmann explained the critical gap in the market.
“The media is part of the infrastructure of an ecosystem. If you remove it, you weaken the whole system.”
FOMO Observer aims to fix this. It will feature contributions from actual founders and operators. These are people writing to share lessons rather than to secure a headline. The publication will operate in both English and Estonian. This dual approach ensures local relevance while maintaining global visibility.
What FOMO Observer Brings to the Table:
- Deep Dives: Going beyond the press release.
- Founder Stories: First-person accounts of failure and success.
- No Paywalls on Wisdom: Focus on value over clickbait.
- Community Co-creation: leveraging the network of top founders.
From Hype to Hard Revenue
The mood of the event reflected a broader economic reality. The era of “growth at all costs” is dead. The Estonian ecosystem is adapting faster than most.
Funding rounds have stabilized or dipped slightly over the last three years. This sounds like bad news on the surface. However, the underlying metrics tell a stronger story.
Revenues are up. Companies are converting investor capital into actual profit.
Hertmann calls this a healthy shift. Customer money is always superior to venture capital. It proves the product works. It builds resilience against market downturns.
This maturity has allowed new sectors to flourish. Defense technology is now a primary pillar of the Estonian economy.
Why Defense Tech is Booming:
- Geopolitics: Proximity to Russia makes security a tangible necessity.
- Ukraine Ties: Strong cooperation and support for Ukraine’s defense.
- Government Support: Active engagement from the Ministry of Defence.
Founders are no longer just building apps for convenience. They are building hardware and software to protect democratic values. Growth in this sector is seen as a form of national resilience.
The Rise of Shadow Builders
A fascinating trend emerged from the discussions at the awards. The next generation of unicorns is currently invisible.
Hertmann noted that many founders are working in “stealth mode.” The tools for building have changed dramatically. Artificial Intelligence and low-code platforms have lowered the barrier to entry.
Small teams can now achieve what once took an army of engineers.
The “Shadow Builder” Phenomenon:
- Lean Teams: Two people can build a global product.
- Less Capital: Lower need for massive pre-seed rounds.
- Quiet Traction: Gaining customers without seeking press attention.
This creates a “different startup society.” These companies do not need the validation of a TechCrunch headline to survive. They focus purely on value creation.
Hertmann’s goal as President is to find these builders. She wants to connect them to the wider community before they surface on their own.
Diversity is also expanding. The ecosystem is moving beyond simple SaaS solutions. Deep tech, energy, and hardware are gaining traction.
Investors are looking for conviction rather than following the herd. Hertmann herself is bullish on energy. She sees it as the foundation of structural change. The days of chasing the latest crypto trend are fading. Investors now want niche expertise and profound impact.
This variety makes the ecosystem more complex. It also makes it more robust. Estonia is proving it is more than just a “land of unicorns.” It is a land of sustainable, hardened businesses ready for a tough global climate.
The Estonian Startup Awards celebrated more than just winners tonight. The event marked the graduation of an entire ecosystem. The focus has shifted from seeking validation to building legacy. With leaders like Triin Hertmann at the helm and FOMO Observer telling the honest stories, the future looks bright. It is a future built on revenue, defense, and resilience.
What do you think about the shift from high-growth unicorns to sustainable “cockroach” startups? Share your thoughts in the comments below! #EstonianMafia #StartupAwards2025
