Art of endurance: How to build a startup in 2026

People often say luck is the biggest factor in startup success. But is that really the whole story? What are the actual benchmarks of a successful venture? 

These questions and many more are at the heart of this Innovantage podcast episode, where its host and Sigli’s CBDO, Max Golikov, speaks with Povilas Žinys, Director of Plug and Play Tech Center in the Baltics. Povilas works closely with startups from pre-seed to Series B and helps founders prepare for the demands of venture-scale growth.

Povilas’s professional journey

Povilas’s own path into startups was shaped by a gradual shift away from traditional business. He studied accounting during his bachelor’s degree. But he quickly realized it wasn’t the right fit. He pivoted toward innovation and technology management during his master’s studies and deliberately sought out the most cutting-edge industries he could find.

That search led him first to the space sector. He worked at a satellite operator, analyzed market trends, and advised leadership on investment directions. The industry itself seemed exciting. Nevertheless, the corporate environment felt limiting. Later, Povilas moved into cybersecurity and joined a company as a product manager. There, he deepened his expertise through a master’s degree in cybersecurity, helped introduce agile practices, and launched new products.

After the company entered an acquisition phase, the work became increasingly focused on internal politics, not on execution. At this moment, Povilas and his colleague decided to start their own company. The idea was born from a simple but widespread problem.

They wanted to help businesses manage corporate spending across distributed teams. Their startup aimed to streamline purchases, approvals, payments, and documentation for finance teams. Revenue was expected to be generated through card interchange fees.

During this period, Povilas relocated from Luxembourg to Lithuania and joined the Wise Guys accelerator. The company went on to complete additional accelerator programs, raise close to €1 million in funding, launch a product, acquire clients, and reach recurring revenue. However, the startup ultimately struggled due to unreliable banking infrastructure providers. Scaling issues and repeated provider changes led to client losses. The product was eventually sold.

One of the startup’s investors was Plug and Play. Later, it offered Povilas the opportunity to establish and lead its Baltic operations. This role provided him with a new perspective. This time, he could take a look at the business world from the investor’s side of the table.

What is a startup accelerator?

A startup accelerator is designed to help founders move faster and avoid costly mistakes on the path to growth. At its core, an accelerator brings a founding team to the next stage by combining structured learning and access to capital.

Accelerators vary by focus. But most of them share common elements, like hands-on mentorship, practical workshops, shared knowledge, and a strong community of peers. Many also offer co-working space. However, the two most critical components are access to a powerful network and early-stage investment. Together, these elements help startups raise their next funding round, enter new markets, or prepare for rapid scaling.

Plug and Play works with a wide range of companies at very different stages. Some startups are still in deep R&D or clinical trials without a product on the market. Others already serve thousands of customers.

In the Baltics, Plug and Play represents a significant milestone. It is the first Silicon Valley-based venture capital firm to establish a permanent presence in the region. The initiative was launched in collaboration with the Lithuanian government. This reflects a broader trend in Central and Eastern Europe. There, public institutions increasingly support innovation. Meanwhile, similar programs in Western Europe are more often driven by corporate partners.

Lithuania and the wider Baltic region offer strong foundations for startups and also serve as an effective testbed for validating products at a smaller scale. However, true growth requires thinking beyond local markets. Plug and Play helps founders go international as early as possible. 

Challenges for startups in 2026

Today, at Plug and Play in Lithuania, startups range from first-time founders with no capital raised to companies that have secured several million euros. The ecosystem also attracts international teams. There are startups from the US, UK, and Asia that rely on Lithuania as a base for their European operations.

Lithuania has emerged as a practical hub for launching in the EU. It ensures lower operating costs, strong technical talent, an active startup community, and an approachable government. All this makes it easier for companies to get started and test new ideas. For many international startups, it offers speed and flexibility that are harder to find elsewhere in Europe.

Despite these advantages, the core challenges remain largely the same. Fundraising is consistently the biggest hurdle. Among others are entering foreign markets, building the right partnerships, developing a strong product, and scaling teams with the right people. Finding talent is not just about skills. It is also about commitment. The process of building a startup requires deep trust and long-term belief from every person involved.

What every successful founder should have

From an investor’s perspective, resilience is one of the most important founder traits. Startups rarely succeed quickly. And failure is often part of the journey. 

What matters is how long founders can keep going. Many successful companies struggled for years before finding product-market fit. In reality, fundraising alone can take nine months or more, despite the common myth of overnight success.

Startup life has nothing in common with the stability of corporate roles. There are no guaranteed weekends, no clear work-life balance, and no short-term rewards. Founders often sacrifice income and personal time. They do all this to bet on a future that is far from guaranteed.

Those who succeed are usually the ones who endure the longest. They stay focused through slow progress and repeated rejection.

Povilas believes that the startup experience offers founders the ultimate combination of freedom and responsibility. It demands tough decisions but allows them to pursue something that is truly their own. 

The experience itself provides invaluable lessons that shape future careers and personal growth. The relationships established along the way are equally important. Connections made in a startup environment are often deeper and more meaningful than in traditional jobs.

How VCs make choices

For venture capitalists, the team is the single most important factor for startup evaluation. Povilas explained that investors look for founders with proven expertise in their industry, a strong work ethic, organizational skills, and the ability to collaborate effectively. 

Other factors that matter are:

• Product quality;
• Technology;
• Intellectual property;
• Scalability;
• Market potential;
• Competition. 

Nevertheless, they are secondary. A strong team can navigate challenges and adapt. Without it, even the best product may fail.

Being an expert in every domain isn’t necessary for investors, especially in a global VC like Plug and Play. With a network of 200 venture specialists across industries and regions, Povilas can rely on colleagues for insights into specific markets or technologies. 

Moreover, it’s crucial to bear in mind that startup evaluation is always context-dependent. A company may be an excellent fit regionally but lack global potential.

Startup failure: Is it possible to avoid it?

Startup failure is common. Roughly 90% of startups fail within their first year. Many more collapse in the following two years. The likelihood of survival often depends on the stage of the company. 

In Lithuania, most startups are at the pre-seed stage, and access to later-stage funding (Series A and beyond) is limited locally. This encourages founders to expand abroad. The global approach is essential for building companies capable of reaching unicorn status.

Despite high failure rates, there are some indicators of above-average startups:

• Adaptability;
• Networking;
• Persistence. 

Success is not solely measured in revenue. Learning from failure, gaining experience, building networks, or making a broader impact also count as achievements. Many founders who experience multiple startup failures can eventually find significant successes. They demonstrate resilience and knowledge that often outweigh early financial outcomes.

The best age for founding a startup

Many successful founders are not in their 20s. They tend to be older, often over 40. They bring years of industry experience to their startups. Povilas explained that this unique experience gives them a crucial advantage. After having worked within an industry, they can identify real problems firsthand and envision practical solutions.

While there are exceptional younger founders, statistically, there are more experienced professionals who succeed. They recognize meaningful gaps and execute effectively. Their deep understanding of the industry allows them to move faster and make better decisions. Moreover, they can address problems with insight that comes only from real-life experience.

Rethinking startup success

Success in startups is often misunderstood. Raising a large amount of capital (€20 million, for example) is frequently seen as an automatic success. But as Povilas highlighted, it also brings enormous responsibility.

Investors expect a return, and the pressure to deliver can be immense, especially for young founders. Smaller funding rounds often carry lower obligations and allow startups to grow more sustainably.

The ultimate measure of success is the ability to finance growth organically. Using their own resources, founders take responsibility for their outcomes and build a business that is under their control.

From an investor's perspective, startup funding is a numbers game. Predictable returns require a diversified portfolio. When you invest in just a few companies, it may feel just like gambling. 

Venture capital remains a high-risk, high-reward asset class, which is typically a small portion of wealthy investors’ portfolios.

Launching startups today

According to Povilas, establishing a startup in Lithuania and the Baltics has never been easier. Abundant EU funding and support programs make it simpler to raise an initial €500K than ever before. Early-stage launch has become more accessible compared with just a few years ago, when founders often had to rely on personal budgets or limited accelerator support.

However, building and scaling a successful business remains challenging. While AI and modern tools have lowered development costs and reduced the need for large engineering teams, competition is fierce.

Investors now expect startups to have sustainable advantages. It could be unique technology, strategic partnerships, strong networks, or first-mover positioning.

Nevertheless, as Povilas explained, competitive advantages are relative. What works in Lithuania may not hold in Europe or globally. Success depends on speed and partnerships. For instance, securing a partnership in a neighboring country and launching quickly can constitute a real advantage.

The scale and intensity of competition also vary by region. In Silicon Valley, rounds and valuations are on a different level. Smaller markets, like Lithuania, are ideal for early-stage testing and prototyping. In such regions, failures are less costly. 

Gap between startups and corporates in Lithuania

Lithuania’s startup ecosystem is growing. But there is a critical gap: corporate engagement. Unlike some countries where companies actively pilot and invest in startups, most Lithuanian corporates treat the ecosystem primarily as a marketing tool. They rely on it to showcase innovation or attract talent. However, they don’t leverage startups to drive real business impact.

This limits startups’ ability to scale solutions internationally and deprives corporations of potential revenue growth or cost savings. Povilas mentioned the example of Mercedes. The company runs numerous pilots annually and integrates new technologies into its products. Such collaborations are still rare in Lithuania.

How Plug and Play helps startups expand internationally

Plug and Play supports Baltic startups in expanding internationally through two main approaches. 

First, it sends startups from Lithuania and the Baltics to programs in other global hubs, like Munich, Silicon Valley, New Jersey, or Texas. This allows them to benchmark against founders in other markets and build more diverse networks. Mixed teams with members from different countries (for instance, Canada and Lithuania) create stronger connections that accelerate growth.

Second, Plug and Play attracts international co-founders and startups to Lithuania. Companies like Red Arrow Technologies from Germany or renewable startups from the broader portfolio can establish operational hubs or secure fintech licenses in Lithuania.

Even if part of a startup’s operation leaves Lithuania, the long-term impact and potential returns benefit the country. 

Emerging opportunities in Lithuania’s startup landscape

Both Max and Povilas agreed that, though the role of AI was largely set aside in their discussion, it is expected to impact nearly every sector globally. 

Beyond AI, Lithuania presents significant opportunities in defense, life sciences, fintech, and cybersecurity.

In defense, proximity to Ukraine and ongoing investments in infrastructure position the country as an attractive hub for innovation (particularly in drones and anti-drone technologies). Lithuania is perceived as close enough to conflict zones to provide relevant market insights. But it is still safe enough to serve as a testing and innovation ground.

Life sciences is another key growth area. The country has strong research capabilities and ambitious government targets, such as generating 5% of GDP from life sciences by 2030. Today, this sector offers potential to transform Lithuania’s economy toward high-value industries. Early successes, such as Vugene and Biomatter, highlight the momentum and investment interest in this field.

Fintech remains a stable sector with continued input and portfolio growth, while cybersecurity represents an untapped opportunity. 

Today, Lithuania has become an excellent launchpad not just for local and international startups. If you want to dive deeper into the nuances of building a startup and doing business in the age of AI and rapid technological progress, stay tuned for more episodes. In the coming weeks, we will bring you fresh insights from leading experts across various industries.