Bulgaria has strengthened its position as a leader in the Balkans for startup creation, climbing to 37th globally in the 2024 Global Startup Ecosystem Index and maintaining its rank as 23rd in Europe. Sofia, the country’s capital, is the highest-ranked startup city with 86% of Bulgaria’s startups.
In the second half of 2024, the Bulgarian startup scene saw its largest seed round to date, closed by Team-GPT. Additionally, in October, Ampeco secured €24.7 million in a Series B funding round. Both companies managed to attract international investors, indicating the growing investor confidence in Bulgaria’s tech sector.
Venture capital landscape
Bulgaria has emerged as a leading country in Southeast Europe for venture capital activity, managing approximately €500 million in capital through locally established VC funds, according to the Bulgarian Venture Capital Association’s 2024 report.
The emergence of numerous VC funds is a trend significantly influenced by the establishment of the Fund of Funds (FoF). The FoF allocates targeted public funds from EU programs and national co-financing through various financial instruments.
In January 2025, the FoF has selected three fund managers for the implementation of the financial instrument (FI) “Entrepreneurship Fund” with a total budget of €100 million.
The selected fund managers include Vitosha Venture Partners II, Morningside Hill II, and Bayena Ventures, but finalizing the agreements will take time due to objections filed against the selection.
Legal framework encouraging innovation
The introduction of the Variable Capital Company (VCC) was made possible through amendments to the Bulgarian Commercial Act in August 2023. Designed to merge the flexibility of a limited liability company with features of a joint-stock company, the VCC provides a streamlined option for startups and small businesses. With the technical infrastructure for VCC registration in place since December 15, 2024, this corporate structure is now available to entrepreneurs and investors.
It is focused towards SMEs that employ fewer than 50 employees and have an annual turnover or assets not exceeding BGN 4 million (€2.05 million).
Driving investments and connections
Events like Start Up, Bulgaria! and The Bridge – the flagship initiative of Power of BG – play a key role in connecting different stakeholders in the entrepreneurial ecosystem, as well as aiming to accelerate the growth of Bulgarian companies globally.
“I shared with young entrepreneurs at the Start Up, Bulgaria! conference that even in my new role as mayor of the capital, I continue to think like an entrepreneur and investor. It is important for startups to receive support from the government, from all politicians in parliament, as well as at the local level, because this will help the entire ecosystem,” shared Vassil Terziev, current mayor of Sofia and notable ecosystem builder.
According to their data, Start Up, Bulgaria! facilitated €284,000 in investments through term sheets, letters of intent, and service agreements. The conference hosted over 2,000 attendees over three days, 108 speakers, and 50 sessions, including a highly successful B2B sales forum and workshops.
Upcoming events
The Scale UP edition of Start Up, Bulgaria! will take place on 13 February in Sofia, focusing on global sales from Bulgaria to international markets. Key topics include designing and launching successful products and businesses.
“Turning Tides: Launching #BreakingGrounds 2025” will take place as a side event, presenting the achievements of #BreakingGrounds so far and outlining the vision for 2025.
