STARTUP ECOSYSTEM
Bulgaria Funding volume
Bulgarian Venture Capital Market and Investment Size
In 2024, Bulgaria’s venture capital market is projected to reach US$32.23 million, with the early-stage segment expected to dominate, accounting for US$23.96 million of the total.
The average investment size varies among different venture capital funds operating in Bulgaria. For example:
- Morningside Hill: Invests between €175,000 and €3.5 million per company.
- Eleven Ventures: Provides initial investments ranging from €250,000 to €1 million, with the potential for follow-up investments up to €2.5 million.
- BrightCap Ventures: Offers investments between €50,000 and €200,000 for early-stage startups, and up to €3 million for growth companies.
- NEVEQ: Invests between €300,000 and €3 million per company.
These figures indicate a diverse range of investment sizes, reflecting the varied stages and sectors of startups in Bulgaria’s venture capital landscape.
In 2023, venture capital funding in Bulgaria experienced some volatility, reflecting broader global economic trends. The total investment in the ecosystem was marked by a mix of substantial deals and cautious investor sentiment. Several large funding rounds in Bulgaria included notable companies like the drone delivery startup Dronamics and fintech company Phos, which was acquired by Ingenico to boost global point-of-sale innovation. Other major highlights in the Bulgarian startup ecosystem in 2023 include key acquisitions and expansions in the e-commerce and AI sectors, driven by startups like Chaos Group and euShipments.
Although total venture capital volume wasn’t as high as in previous years, some sectors like AI, B2B software, and fintech attracted significant attention. Early-stage investments remained active, with funding rounds ranging from pre-seed to seed stage, supported by venture capital firms such as Sofia Angels Ventures and NV3. Despite a more cautious approach from investors, these firms continued to invest in promising startups, with typical ticket sizes for early-stage investments between €200K to €500K
Source: Private Investment in Bulgaria & South Eastern Europe 2024
This aligns with the global slowdown in funding, yet Bulgaria’s ecosystem continues to offer opportunities, especially for startups in high-growth sectors like AI and fintech.
Sources:
Bulgaria Funding volume
In 2024, Bulgaria's venture capital market is projected to reach US$32.23 million, with the early-stage segment expected to dominate, accounting for US$23.96 million of the total. The average investment size varies among different venture capital funds operating in Bulgaria.
Bulgaria Innovation index
Bulgaria is making strides in innovation and technology, yet the country still faces challenges in terms of patent filings and research and development (R&D) spending. Despite a relatively modest performance in comparison to other EU nations, efforts are underway to enhance Bulgaria’s position in the global innovation ecosystem.
Bulgaria Export/Import Ratio
Efforts are being made to improve Bulgaria's innovation capacity, especially through targeted initiatives and EU funding programs aimed at boosting R&D activities. However, the country still faces challenges in increasing funding levels and improving the overall effectiveness of R&D. To compete with other EU nations and boost its innovation landscape, Bulgaria will need to significantly increase its investment in research and foster a more conducive environment for scientific breakthroughs and technological advancements.
Bulgaria Startup density
Bulgaria has become an increasingly attractive destination for startups and entrepreneurs, ranking 37th globally and 6th in Eastern Europe for its startup ecosystem, according to StartupBlink. This upward trajectory in fostering innovation, particularly in sectors like software, artificial intelligence (AI), and e-commerce, has positioned Bulgaria as a key player in the region. The country’s dynamic entrepreneurial environment is reflected in the growing number of active startups and continued investment activity.
Bulgaria Investment in key sectors
Bulgaria has been steadily increasing both public and private investments in its technology sector, particularly in cloud technology, artificial intelligence (AI), cybersecurity, and software development. Known for its rich IT tradition, the country has become a leading player in the ICT sector, which is a crucial driver of its economy. In 2023, over 126,000 specialists were employed in the sector, reflecting the expanding demand for skilled professionals and the growing significance of technology in Bulgaria’s overall economic development.
