Venture Capital - Bulgaria

Bulgaria

Highlights

The country in Bulgaria is expected to see the Total Capital Raised in its Venture Capital market market reach US$32.23m by 2024.
In Bulgaria, the Early Stage market is projected to dominate the market with a market volume of US$23.96m in 2024.
When compared globally, the United States is forecasted to generate the most Capital Raised, amounting to US$136.6bn in 2024.
Bulgaria's Venture Capital market is gaining traction with increased investments in tech startups, positioning the country as a rising star in European innovation.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Bulgaria has been experiencing significant growth in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Bulgarian entrepreneurs are increasingly looking for external funding sources to support their innovative ideas and business ventures. This is partly due to the limited availability of traditional bank loans, which often require collateral and have strict lending criteria. As a result, many entrepreneurs are turning to Venture Capital firms as a viable alternative for financing their startups. Additionally, there is a growing interest among Bulgarian investors to diversify their investment portfolios and participate in the high-risk, high-reward nature of Venture Capital investments.

Trends in the market: One of the key trends in the Venture Capital market in Bulgaria is the emergence of specialized funds focusing on specific industries or sectors. These funds provide targeted support and expertise to startups operating in niche markets, which can help them overcome industry-specific challenges and accelerate their growth. Another trend is the increasing involvement of international Venture Capital firms in the Bulgarian market. This is driven by the country's favorable business environment, skilled workforce, and growing reputation as an innovation hub in the region.

Local special circumstances: Bulgaria benefits from several local special circumstances that contribute to the development of its Venture Capital market. The country has a strong pool of highly educated and skilled professionals, particularly in the fields of technology and engineering. This talent pool, combined with the relatively low cost of labor, makes Bulgaria an attractive destination for startups and Venture Capital investors. Additionally, the Bulgarian government has implemented various initiatives and incentives to support entrepreneurship and innovation, including tax breaks and grants for startups.

Underlying macroeconomic factors: The growth of the Venture Capital market in Bulgaria is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has created a favorable environment for startups and Venture Capital investments. Additionally, Bulgaria's membership in the European Union provides access to a larger market and opportunities for cross-border collaborations. The country's strategic location in Southeast Europe also makes it an attractive destination for foreign investors looking to expand their presence in the region. In conclusion, the Venture Capital market in Bulgaria is developing rapidly due to customer preferences for alternative financing options, trends such as specialized funds and international involvement, local special circumstances including a skilled workforce and government support, and underlying macroeconomic factors such as economic growth and EU membership. These factors collectively contribute to the growth and maturation of the Venture Capital ecosystem in Bulgaria, creating opportunities for both entrepreneurs and investors alike.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.