Bulgaria Startup density

Bulgaria’s Growing Startup Ecosystem: A Hub for Innovation in Eastern Europe

Source: The Global Startup Ecosystem Index Report 2024

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.

Regional Rankings and Ecosystem Value

Bulgaria is gaining recognition in Eastern Europe, with Sofia emerging as a critical hub for innovation. The country’s entrepreneurial landscape has been shaped by notable startups such as Payhawk, which became Bulgaria’s first unicorn in 2022, showcasing the increasing success of Bulgarian-based companies on the global stage.

Today, Bulgaria is home to 440 active startups, contributing significantly to the country’s economic development and regional standing. This vibrant startup ecosystem continues to attract attention from local and international investors, providing ample opportunities for growth and collaboration.

Total Number of Startups and Funding Activity

Bulgaria’s startup ecosystem has witnessed consistent investment and funding activity in recent years. The country is recognized as a leader in Southeastern Europe (SEE), both in terms of investment deal count and investment value per capita.

According to the Bulgarian Private Equity and Venture Capital Association, Bulgaria has been able to secure steady investments, cementing its position as a thriving startup hub. This activity not only supports the growth of local businesses but also enhances the country’s appeal to global investors looking for high-growth opportunities in key industries like FinTech, Deep Tech, and AI.

Bulgaria’s startup ecosystem is on a strong upward trajectory, driven by key cities like Sofia and an increasing number of successful ventures. With strong investment activity and government support for innovation, the country is poised to continue its growth as a leading hub for technology and entrepreneurial endeavours in Eastern Europe.

For entrepreneurs and investors seeking opportunities in the tech sector, Bulgaria offers a dynamic and supportive environment to drive innovation, scale businesses, and collaborate with like-minded partners.

Sources: StartupBlink, The Recursive

Source: Bulgarian National Bank, Private Investment in Bulgaria & South Eastern Europe