At this year’s Bits & Pretzels in Munich, Germany – Bulgaria is making waves. With a delegation of 50 founders, VCs, corporate leaders, and government officials, Bulgaria is positioning itself as Europe’s next tech powerhouse, ready to attract German investments.
Co-founder of Bits & Pretzels, Bernd Storm vans Gravesande, echoed this sentiment, stating, “Bulgaria’s dynamic presence at this year’s event has been nothing short of remarkable. It’s clear that the country is rapidly establishing itself as a vital player in Europe’s tech landscape, and the enthusiasm from investors proves Bulgaria’s tech ecosystem is on the rise.”
Leading the charge is the #BreakingGrounds initiative, spearheaded by The Recursive’s Storytelling Studio, which aims to put Bulgaria and the SEE region in the global spotlight. The initiative focuses on driving investment and technological development while connecting key investors and industry leaders. #BreakingGrounds envisions Bulgaria as a deep tech hub by 2027 and is well on its way to realizing this ambitious goal.
Why the world should be watching Bulgaria’s tech boom
Bulgaria is emerging as a regional leader, driven by its entrepreneurial spirit and an unprecedented rise in startups. In the last five years, tech startup creation in the country has grown 100x, making Bulgaria one of the most dynamic ecosystems in Southeast Europe. According to McKinsey & Co., Bulgarian startups exhibit 5.6x higher capital efficiency compared to their U.S. counterparts, placing Bulgaria on the map as a formidable contender in the global tech race.
Top initiatives showcasing Bulgaria’s tech prowess:
-
- Payhawk: Bulgaria’s First Unicorn. In 2022, Payhawk made history by becoming Bulgaria’s first unicorn. The company expanded into Germany and raised one of the largest EU seed rounds, backed by Earlybird Digital East Fund.
- Fund of Funds: A VC Powerhouse. Bulgaria’s Fund of Funds is set to inject over 500 million EUR into local startups, ensuring the country remains a leading funding market in Southeast Europe.
- Deep Tech Surge. In the last five years, over 1 billion EUR has been invested in deep tech startups in Bulgaria, driving innovation in sectors like AI, automation, and aerospace.
- Diversity in Innovation. One-third of all startups in Bulgaria are founded by non-Bulgarians, reflecting the country’s growing reputation as a global talent hub.
German connections: a strategic partnership for tech growth
Germany has been a longstanding partner in Bulgaria’s technology journey. Major companies like SAP, Bosch, and SUSE operate large IT hubs in Bulgaria, employing thousands of software engineers.
With over 500,000 Bulgarians speaking German, the language and cultural ties further strengthen the partnership potential between the two nations.
Additionally, Chaos, a global leader in 3D visualization, was founded in Bulgaria and now operates out of Karlsruhe, Germany, symbolizing the growing synergy between these two tech ecosystems.
Simon Wittmann from Invest in Bavaria, where he handles Investor Services, Energy & Startups noted, “Bavaria is a natural partner for Bulgaria’s fast-growing tech sector, and we believe this partnership will open doors to new collaborations and innovations across Europe.”
Bits & Pretzels 2025: Bulgaria’s impact
For the first time, Bulgaria shared the stage with tech powerhouses like Sweden and France at the opening ceremony of Bits & Pretzels 2025. Teodor Antonio Georgiev, co-founder of #BreakingGrounds, introduced Bulgaria’s tech ecosystem to a global audience, following in the footsteps of past speakers such as Barack Obama and Arnold Schwarzenegger.
In addition, one of Bulgaria’s fastest-growing scale-ups, Evrotrust, delivered a 90-second pitch, presented by Konstantin Bezuhanov, the CEO of the digital identity company, further solidifying Bulgaria’s tech boom and its potential to attract global investments.
Bulgaria & Germany: innovation and investment opportunities
The delegation left a lasting impression with a cutting-edge masterclass titled “The Innovator’s Dilemma: How to Revolutionize Business Value Using Today’s AI Technology.” The event explored the pivotal role of AI in shaping the future of business value with some of Bulgaria’s top industry leaders. Petar Dimov, CTO of Integrator JSC, Todor Todorov, CEO of Bronia, Philip Balkanski, CEO of Codery, and Stephane Gantchev, Partner at LAUNCHub Ventures demonstrated how Bulgarian companies are not just adopting technology but are using it to transform industries.
The event “Entering the German Tech Market: Opportunities for Southeast Europe,” co-hosted by Invest in Bavaria and Creandum, attracted over 100 participants, including industry heavyweights like BlackRock, McKinsey, and Intel.
“Bulgaria’s tech ecosystem is rapidly becoming a force in Europe. The country’s deep tech capabilities and entrepreneurial spirit make it an ideal partner for German investors and corporates looking to scale innovation,” commented Jakob Stein, VP of Creandum.
Bulgarian tech is ready for the global stage
With a flourishing ecosystem, strategic partnerships, and growing international recognition, Bulgaria’s tech sector is making a significant impact on Germany’s economy and beyond.
“Bulgaria is at a pivotal point. We are harnessing the power of AI, deep tech, and innovation to drive value, and we’re ready to take our place on the world stage, concluded Iskren Krusteff, CEO of Integrator JSC, main partners of #BreakingGrounds.
The next wave of innovation and investment may very well be coming from Southeast Europe, and Bulgaria is ready to lead the charge.
