Venture Capital - Montenegro

Montenegro

Highlights

The country in Montenegro is expected to see Total Capital Raised in the Venture Capital market market reach US$45.47m by 2024.
In Montenegro, the Early Stage market is set to dominate the market with a projected market volume of US$20.03m in 2024.
When compared globally, the United States is anticipated to lead in Capital Raised, generating US$136.6bn in 2024.
Montenegro's emerging tech scene is attracting increasing venture capital interest, positioning the country as a promising investment hub in Southeast Europe.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Montenegro, a small country located in Southeast Europe, has been experiencing a significant growth in its Venture Capital market in recent years.

Customer preferences: Entrepreneurs and startups in Montenegro are increasingly turning to venture capital as a source of funding for their innovative ideas and projects. This preference can be attributed to the fact that venture capital provides not only financial support, but also strategic guidance and industry connections. Entrepreneurs are attracted to the potential for rapid growth and scalability that venture capital can offer, as well as the opportunity to work with experienced investors who can help them navigate the challenges of building a successful business.

Trends in the market: One of the key trends in the Montenegrin venture capital market is the increasing number of local and international venture capital firms setting up operations in the country. These firms are attracted by the country's growing startup ecosystem, which is supported by a favorable regulatory environment and government initiatives to promote entrepreneurship. This influx of venture capital firms has led to an increase in the availability of funding for startups, as well as a greater diversity of investment options for entrepreneurs. Another trend in the market is the focus on technology and innovation. Montenegro has seen a rise in startups in sectors such as fintech, e-commerce, and software development. These startups are leveraging advancements in technology to create innovative solutions and disrupt traditional industries. Venture capital firms are actively seeking opportunities in these sectors, as they offer high growth potential and the possibility of significant returns on investment.

Local special circumstances: Montenegro's small size and relatively underdeveloped economy present both challenges and opportunities for the venture capital market. On one hand, the small market size limits the potential customer base for startups, making it more difficult for them to achieve scale and attract significant investment. On the other hand, the country's size also means that startups have the opportunity to quickly establish a strong presence in the market and gain a competitive advantage. Additionally, Montenegro's tourism industry, which is a major contributor to the country's economy, presents unique opportunities for startups. The demand for innovative solutions in the tourism sector, such as online booking platforms and travel tech, has attracted the attention of venture capital firms. Startups in this sector have the potential to tap into a large and growing market, both domestically and internationally.

Underlying macroeconomic factors: The Montenegrin venture capital market is also influenced by several macroeconomic factors. The country's stable political environment and commitment to economic reforms have created a favorable business climate, attracting foreign investors and venture capital firms. Additionally, Montenegro's strategic location and its membership in the European Union accession process have further enhanced its appeal as an investment destination. Furthermore, the government of Montenegro has implemented policies and initiatives to support entrepreneurship and innovation. These include tax incentives for startups, funding programs, and the establishment of incubators and accelerators. These measures have helped to create a supportive ecosystem for startups and have contributed to the growth of the venture capital market. In conclusion, the Venture Capital market in Montenegro is developing rapidly due to the increasing preference for venture capital as a source of funding, the influx of venture capital firms, the focus on technology and innovation, the unique opportunities presented by the country's small size and tourism industry, and the underlying macroeconomic factors such as the stable political environment and government support for entrepreneurship. These factors are driving the growth of the venture capital market in Montenegro and creating opportunities for entrepreneurs and startups to thrive.

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.