At this year’s Crossroads by Startup Bulgaria 2025 conference in Sofia, Bulgaria, the message was clear: the country is positioning itself as a strategic hub for early-stage innovation in Central and Eastern Europe. With low operational costs, access to EU funding, and an increasingly skilled talent pool, Bulgaria offers fertile ground for startups, investors, and intermediaries looking to expand their footprint.
As part of Eurocrowd’s ongoing engagement within the region, through Early Stage Investors Launchpad in collaboration with Business Angels Europe, bpifrance and Meta Group, Italy, and other initiatives, we joined discussions on how alternative finance and cross-border investment can accelerate this emerging ecosystem.
Bulgaria’s appeal lies not only in its cost efficiency but also in its growing innovation environment. The country boasts some of the lowest tax rates and operational costs in Europe, enabling startups to stretch their runway and experiment with new ideas. Access to EU innovation programs further strengthens its competitiveness, offering grants and subsidies that help early-stage companies gain traction.
However, the greatest opportunities may lie in addressing the gaps. Many Bulgarian startups still depend heavily on public funding. Venture capital and angel networks remain scarce but are growing, yet crowdfunding remains underdeveloped, a space where early movers could play a transformative role. Our member Tokeportal, founded in Hungary, joined Crossroads with one of its portfolio companies to explore this potential firsthand.
Regulatory complexity remains a challenge, often slowing innovation. Yet, this also creates opportunities for local actors who can simplify compliance or engage in shaping more innovation-friendly frameworks. Likewise, talent development represents an untapped resource: while Bulgaria ranks third in Europe for design excellence, it still trails in AI and deep tech, signalling the need for targeted upskilling and stronger industry-academia collaboration.
Key Opportunities
- Funding: Expand access to private capital through venture funds, angel networks, and crowdfunding platforms.
- Regulation: Develop compliance-as-a-service tools and advocate for startup-friendly legal environments.
- Talent: Support upskilling and incubation in AI, FinTech, and design-driven innovation.
- Cross-Border Collaboration: Strengthen ties with neighboring ecosystems to build a unified Eastern European innovation corridor.
The FinTech and digital finance sectors currently stand out as particularly promising. With regulatory support and an increasingly tech-savvy workforce, Bulgaria is hoped to become a regional leader in digital finance. Drawing inspiration from Estonia’s success, discussions at Crossroads argued that Bulgaria can accelerate its growth through digital government initiatives, venture activity, and innovation hubs.
The path forward calls for public-private partnerships, structural reforms, and sustained investment in high-growth sectors. For founders, investors, and ecosystem builders, now might be the time to engage. With its cost advantages, EU funding, and untapped potential, Bulgaria offers a compelling opportunity to shape the next wave of innovation in Central and Eastern Europe.
This article draws on insights from Crossroads by Start-up Bulgaria 2025, where Eurocrowd’ Selin Gocer joined ecosystem leaders to discuss the future of early-stage finance and innovation across the region.
