STARTUP ECOSYSTEM
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
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.
