Bulgaria Frequently Asked Questions

Q: How long does it take to start a business in Bulgaria?

A: It takes approximately 3 to 5 days to start a business in Bulgaria, with low setup costs and a straightforward registration process, making it an attractive destination for entrepreneurs.

Q: What is the average cost to start a business in Bulgaria?

A: The average cost to start a business in Bulgaria is relatively low, with registration costs around BGN 55 (approximately €30), making it an appealing destination for entrepreneurs.

Q: Which sectors are most attractive for venture capital in Bulgaria?

A: The most attractive sectors for venture capital in Bulgaria include FinTech, Healthcare Tech, E-commerce, SaaS, AI, and telecommunications, with a strong emphasis on early-stage investments in these areas.

Q: What is the average investment size by Bulgaria’s venture capital funds?

A: Bulgaria’s venture capital funds typically invest between €50,000 and €3.5 million, depending on the stage and sector of the startup. Funds like Morningside Hill and Sofia Angels Ventures target early-stage investments in sectors such as FinTech, Healthcare Tech, and E-commerce.

Q: How does Bulgaria’s venture capital market compare to other European countries?

A: Bulgaria’s venture capital market has been growing, with over 50 active VC funds. However, while the market has potential, it still faces challenges such as relatively low R&D spending (about 0.73% of GDP in 2022) compared to other EU countries, which limits its ability to fully compete with more advanced ecosystems.

Q: How much did Bulgaria invest in digital skills and infrastructure in 2024?

A: In 2024, Bulgaria allocated €2.2 billion (about 2.3% of GDP) to achieve the EU’s Digital Decade objectives, focusing on enhancing digital skills, improving infrastructure, and expanding digital services.

Q: What are the key challenges for investors in Bulgaria’s tech ecosystem?

A: The main challenges include high competition in the tech sector, with many startups vying for limited funding. Additionally, sectors like consumer applications and deep tech remain underrepresented, presenting both challenges and opportunities for investors.