The Startup Ecosystem of Georgia

Georgia provides a good model for an open and transparent economy in Central Asia. The Ministry of Economy and Sustainable Development is focused on supporting startup ecosystem development, especially through its subdivision Georgia’s Innovation and Technology Agency (GITA). Startup Georgia is a good example of an active organization pushing the local ecosystem forward. Some initiatives of the organization include pre-acceleration and acceleration programs, bootcamps and community events for startups and investors. Furthermore, Startup Georgia continuously gathers data about investments, fundings, failures and exits of Georgian tech startups to showcase the state of the ecosystem in a reliable way. Several innovative centers and laboratories have opened in the country, as well as more than twenty Fab-Labs. There are several business support platforms and organizations, such as Startup Factory by the University of Georgia, Batumi Business incubator (Batumi is the administrative centre of the Adjara republic, a Georgian autonomy), and Startup Grind Tbilisi. Another hub that supports the business environment for entrepreneurs is the new Centre of Entrepreneurship by the International Chamber of Commerce.
Notable accelerator programs and coworking spaces include Impact Hub in Tbilisi, FasterCapital (a branch of an international online incubator and accelerator), and the acceleration program 500 Startups, launched with the support of the World Bank.
Georgia is also becoming increasingly popular with expats and digital nomads, which will add to its future knowledge base and talent pool.
Georgia benefits from same day registration for business and startup friendly tax laws. The country is affordable and accessible, with low labor costs and market access to Europe. More than 60% of the country’s population is English speaking.
The main challenges of Georgia’s startup ecosystem are a lack of experienced entrepreneurs and a small consumer market. A small market is expected from a country with such a small population, and pushes local entrepreneurs towards the global market. There is also less access to financial capital from both foreign and domestic investors. Startups mostly receive funding from state programs and competitions, and different banks have their own investing programs.
Georgia’s startup ecosystems have been very active with all the supporting initiatives implemented in the country, which helps young entrepreneurs develop and launch their innovative business ideas. The next phase will require results on the ground, which will have to be produced by Georgia’s entrepreneurs.