Faced with currency volatility, limited late-stage funding, and fragmented markets, Eurasian founders tend to adopt capital-efficient models and regionally adapted tech solutions. This approach contrasts with the more valuation-driven strategies common in the US and Western Europe. As 500 Global launches the 9th edition of its Eurasia accelerator program, Pedro Santos Vieira, Partner at 500 Global, shares with The Recursive why the region’s approach is starting to stand out.
“Eurasian founders inherently build for fragmented markets from day one,” Vieira says. “Unlike Silicon Valley/US founders who scale domestically first, these entrepreneurs develop cross-cultural product adaptation as a core competency — essential for global expansion.”
In a world where regulatory complexity, capital constraints, and market fragmentation are the rule rather than the exception, startups from Eurasia are beginning with what others only learn to handle later. And that, Vieira argues, is why the region deserves more attention from investors.
Why Eurasia, why now
Vieira outlines six key reasons why Eurasia is gaining traction:
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- Cross-Border DNA: Eurasian founders inherently build for fragmented markets from day one. Unlike Silicon Valley /US founders who scale domestically first, these entrepreneurs develop cross-cultural product adaptation as a core competency—essential for global expansion.
- Constraint Innovation: Limited local capital forces founders to achieve product-market with fewer resources. This creates fundamentally more efficient business models that translate exceptionally well globally.
- Strategic Geographic Position: Eurasia sits at the intersection of European regulation, Asian scalability, and emerging market innovation—making it ideal for companies that need to bridge different economic systems and regulatory frameworks.
- Undervalued Technical Talent: The region produces world-class engineering talent at a fraction of Silicon Valley costs, particularly in AI/ML where strong mathematical foundations from educational systems create genuine competitive advantages.
- Government-Backed Ecosystem Development: Unlike in other emerging markets, we see structured government support through partnerships like our work with Georgia’s GITA and the Bank of Georgia, providing stability and institutional backing for startups.
- Investor Evolution: We’re seeing a fundamental shift from viewing Eurasia as an “emerging market opportunity” to recognizing it as a “specialized expertise hub” for complex, multi-jurisdictional challenges that are increasingly relevant in today’s interconnected world.
How it stacks up: Eurasia vs. CEE and the USA
When comparing Eurasia to Central and Eastern Europe (CEE) and the U.S., the distinctions are as much about ecosystem maturity as they are about mindset, points Vieira:
vs. CEE:
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- Earlier-stage, higher-upside investments in Eurasia;
- CEE has clearer exit paths via EU integration;
- Eurasia features more “greenfield” opportunities and stronger government ecosystem support;
- Funding pathways differ: CEE founders may raise from EU VCs at Series A, whereas Eurasian founders often start with support from regional development banks or public-sector initiatives.
vs. USA:
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- U.S. founders optimize for growth in a unified market;
- Eurasian founders optimize for efficiency across fragmented markets;
- Startups in the U.S. often perfect product-market fit locally before expanding;
- Eurasian startups develop multi-country strategies from day one — out of necessity.
And while the U.S. and Western Europe chase valuation milestones, Eurasian founders play a longer game.
“US and Western founders often pursue “unicorn-or-bust” strategies. Eurasian founders exhibit more pragmatic ambition, focusing on building profitable, scalable businesses rather than optimizing purely for valuation milestones. Example: Rather than pursuing rapid growth to achieve unicorn status, some of the most successful ventures (e.g. DDD Invoices) built sustainable revenue streams across multiple countries before raising external capital, creating a more resilient business model.”
Operational edge: Regulation as a feature, not a bug
Eurasian startups also stand out in how they approach regulatory complexity. Founders from Central Asia are architecting payment systems that function across Kazakhstan, Armenia, and Georgia simultaneously — something that requires technical foresight rarely demanded in more homogeneous markets.
“Eurasian founders show greater comfort with regulatory complexity and cross-border operations from inception,” Vieira explains. “They demonstrate ‘strategic patience’, building sustainable businesses that can weather various market conditions while maintaining growth trajectories.”
This strategic patience may just be Eurasia’s secret weapon in the long game of tech.
Where the smart money is headed
Vieira says there is a “strong momentum in fintech (particularly cross-border payments), agtech, logistics optimization, and government services digitization. Less consumer-focused AI but more substantial B2B infrastructure applications.”
As for where the next breakout startups might emerge, Vieira points to three categories:
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- B2B Cross-Border Solutions: Startups that use regulatory arbitrage and capitalize on the region’s trade corridors;
- Vertical AI Applications: Especially in sectors where regional workflows create unique data sets and optimization needs;
- Infrastructure Technology: Platforms that help modernize the region’s still-developing physical and digital infrastructure.
500 Global is adapting right alongside the ecosystem. Their 500 Eurasia program emphasizes cross-border expansion from day one, as well as “regulatory compliance, and connections to development finance institutions rather than just traditional VCs. We’ve adapted our curriculum to focus on multi-market validation and regional scaling strategies,” explains Vieira who leads the program.
The 500 Eurasia Accelerator Program is a 12-week program in Georgia for early-stage tech startups across Eastern Europe, the Caucasus, and Central Asia. It combines in-person and remote phases focused on growth, fundraising, and product-market fit, culminating in a Demo Day. Founders receive mentorship, community support, and potential funding up to $100,000. The program accepts applications on a rolling basis for its 9th batch starting September 2025.
What’s next?
Looking ahead, Vieira is confident in the trajectory of Euroasia startup ecosystem:
“Next 3–5 years:
- Emergence of 1–3 regional champions valued over $1B
- Development of local institutional LP base reducing dependence on foreign capital
- Government-backed sector-specific expertise clusters (fintech, agtech, logistics)
- Increased cross-border M&A creating regional consolidation”
In other words, the pieces are falling into place — not just for individual startups, but for the ecosystem as a whole.
