Venture Capital - Eastern Europe

Eastern Europe

Highlights

The country in Eastern Europe is projected to reach a Total Capital Raised of US$1.23bn in the Venture Capital market market by 2024.
In Eastern Europe, Early Stage dominates the market with a projected market volume of US$529.60m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised (US$136.6bn in 2024).
In Eastern Europe, Poland's Venture Capital market is flourishing, with a surge in investments in tech startups driving innovation and economic growth.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Eastern Europe has been experiencing significant growth and development in recent years.

Customer preferences: Entrepreneurs in Eastern Europe are increasingly seeking venture capital funding to support their innovative ideas and start-ups. This is driven by the desire to access the necessary capital to scale their businesses quickly and compete in the global market. Additionally, entrepreneurs are attracted to venture capital funding for the expertise and networks that investors bring, which can help them navigate the challenges of building a successful company.

Trends in the market: One of the key trends in the Venture Capital market in Eastern Europe is the increasing number of venture capital firms and funds operating in the region. This has resulted in a greater availability of capital for start-ups, as well as increased competition among investors. As a result, entrepreneurs have more options when it comes to choosing the right investor for their business. Another trend in the market is the focus on specific industries or sectors. Venture capital firms in Eastern Europe are increasingly specializing in areas such as technology, healthcare, and renewable energy. This specialization allows investors to develop deep expertise in these sectors and make more informed investment decisions. It also attracts entrepreneurs who are working on innovative solutions in these industries.

Local special circumstances: Eastern Europe has a strong pool of talented and highly educated individuals, many of whom have experience working in multinational companies or leading research institutions. This talent pool has been instrumental in driving the growth of the Venture Capital market in the region. Entrepreneurs with a strong technical background are able to develop innovative solutions that attract venture capital investment. Additionally, the relatively low cost of living and operating a business in Eastern Europe compared to Western Europe or the United States makes the region an attractive destination for entrepreneurs and investors alike. This allows start-ups to stretch their funding further and achieve milestones more quickly.

Underlying macroeconomic factors: The development of the Venture Capital market in Eastern Europe can be attributed to several macroeconomic factors. One of the key drivers is the overall economic growth and stability in the region. As Eastern European countries continue to experience economic development and integration with global markets, there is a growing demand for venture capital funding to support the growth of innovative businesses. Furthermore, government initiatives and policies aimed at supporting entrepreneurship and innovation have played a significant role in the development of the Venture Capital market. Governments in Eastern Europe have recognized the importance of fostering a supportive ecosystem for start-ups and have implemented measures such as tax incentives, grants, and incubator programs to attract venture capital investment. In conclusion, the Venture Capital market in Eastern Europe is experiencing significant growth and development due to the increasing demand for venture capital funding among entrepreneurs, the presence of specialized venture capital firms, the availability of a talented workforce, and favorable macroeconomic factors. This trend is expected to continue as the region continues to attract investment and foster innovation.

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.