In this episode of the Startup Ecosystem Podcast, we’re traveling back in time by revisiting an old recording to explore the state of Bulgaria’s startup ecosystem in 2022. This episode features an interview by Eli David Rokah, CEO of StartupBlink, with Momchil Vassilev, the Managing Director of Endeavor Bulgaria, discussing how different stakeholders’ engagement in startup ecosystems can transform it. Learn more about startup ecosystems around the world by downloading the StartupBlink Global Startup Ecosystem Index for an analysis of 100 countries and 1,000+ cities.
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Bulgarian Startup Scene in 2022
By 2022, Bulgaria’s entrepreneurial ecosystem had matured significantly, boasting over 17 active local venture capital funds that spanned all stages of business development. This robust network of funds played a crucial role in nurturing startups from inception through to growth and expansion. The availability of diverse funding options helped address the critical need for capital during the growth phase, enabling startups to scale their operations effectively. The collaborative efforts within the community, including mentorship and strategic support from seasoned investors, fostered a vibrant and dynamic startup environment that attracted both local and international attention.
Recently, Momchil Vassilev reflected on the advancements in the ecosystem:
“Based on its strong fundamentals, the Bulgarian entrepreneurial ecosystem sustained its growth trajectory even during the relative slowdown in global investment activity and the political turmoil of the last couple of years. Solid local capital supply and a robust entrepreneurial support infrastructure have positioned the country as a leader in SEE in terms of VC investment per capita, deals per capita, and the total number of funded start-ups, according to a report commissioned by the EIB and BVCA and produced by PwC. The share of the digital economy reached almost 12% of GDP in 2023.
There is still much work to be done in improving growth-stage capital supply, streamlining, and implementing an innovation- and investor-friendly legal framework. The next big challenge for our region is to develop effective connectivity within and among our ecosystems, thereby positioning SEE as the next entrepreneurial and innovation hotspot.”
Support Infrastructure
The support infrastructure in Bulgaria was well-developed and multifaceted, catering to entrepreneurs at various stages of their journey. Organizations like Innovator and Junior Achievement were instrumental in inspiring and educating young minds in schools, while Able worked closely with universities to nurture entrepreneurial talent. Incubators and accelerators, such as the Founders Institute, provided essential resources, mentorship, and networking opportunities to early-stage startups, helping them refine their business models and accelerate growth.
Media Involvement
Media outlets such as Recursive, Forbes Bulgaria, Bloomberg, and Capital Daily played an important role in building an entrepreneurial culture in Bulgaria. By extensively covering entrepreneurial activities, success stories, and industry trends, these media platforms helped raise awareness and generate enthusiasm for the startup ecosystem.
Government Involvement
The Bulgarian government took significant steps to bolster the startup ecosystem by establishing dedicated structures and policy-making organizations. The creation of the Ministry of Innovation and Growth underscored the government’s commitment to fostering innovation and supporting entrepreneurial ventures. Organizations like BESCO (Bulgarian Startup Association), IBA (Investment Promotion Agency) and BSMEPA (Bulgarian SME Promotion Agency) played key roles in advocating for favorable policies and providing strategic support to startups.
Policy Advancements
Bulgaria made notable policy advancements to enhance its startup ecosystem, including the development of a special stock exchange segment tailored for startups. This initiative simplified fundraising procedures, making it easier for startups to raise capital. Additionally, legal reforms such as the introduction of a startup visa and the simplification of the blue card regime aimed to attract skilled non-EU talent to the country.
With many steps towards the right direction, Bulgaria continues to yield positive results in the Global Startup Ecosystem Index. In the latest startup ecosystem rankings, Bulgaria increases by one spot to rank in the 37th position and maintains the 23rd position in Europe. Sofia, the top city in Bulgaria, has a total score that is 20 times greater than Varna, the 2nd ranked, signaling the centralization of the startup ecosystem in the capital.
The growth of Bulgaria’s startup ecosystem illustrates the importance of cohesive stakeholder engagement, from entrepreneurs and investors to policymakers and media outlets. The synergy created by these diverse contributors has enabled Bulgaria to position itself as a dynamic hub for innovation and entrepreneurship in Southeast Europe. As the ecosystem continues to evolve, fostering cross-border collaborations and ensuring continued support for growth-stage companies will be essential to maintaining momentum and achieving long-term success in the global innovation landscape.
