The AI sector in the Western Balkans has seen fluctuating investment levels over the past two years. 2023 was a record-breaking year, with AI startups in the region raising €33M, led by substantial rounds from Anari AI (€3.3M), Rolla (€6.3M) and Trickest ((€1.4M) . However, in 2024, AI funding has slowed significantly, with only €3M secured in early-stage rounds. Despite this downturn, the region continues to foster new AI startups, indicating long-term growth potential.
The information in this article is based on The Recursive’s State of AI in 2024 report. Download it here and get the latest insights about the CEE startup ecosystem.
Funding landscape: A sharp decline from 2023 to 2024
The €33M raised in 2023 positioned the Western Balkans as an emerging AI hub, attracting attention from both local and international investors. However, 2024’s funding has dropped significantly, with only €3M secured so far, mainly from Collabwriting (Serbia) and Lupa Technology (Serbia).
Startups to follow in the Western Balkans
Despite the funding slowdown, innovative AI startups continue to emerge. Some of the most promising ones include:
- Lupa Technology – A startup developing a cloud-based SaaS platform for data management, expert analytics, and AI-driven insights in the construction and legal industries.
- Trickest – A cybersecurity company specializing in offensive security automation, helping organizations with Attack Surface Management (ASM), Vulnerability Scanning, and Dynamic Application Security Testing (DAST).
- Collabwriting – A Serbian startup enhancing online research and collaboration through a browser extension that allows users to highlight, comment, and organize web content.
VCs and investment trends
Venture capital activity in the region remains active, even with lower overall investment levels. In 2024, Fifth Quarter Ventures (5QV) announced fresh funding of €18.4M, signaling continued interest in AI startups.
While 2024’s funding numbers indicate a slowdown, the Western Balkans continues to develop a growing AI ecosystem with a rising workforce, promising startups, and ongoing VC interest. The next challenge will be attracting more investment to sustain long-term growth and innovation in the region.
