Central Eastern European (CEE) Startups: A Story of Growth, Challenges, and Promise
The Central Eastern European (CEE) startup ecosystem stands as a testament to the region’s burgeoning innovation and entrepreneurial spirit, with a combined enterprise value soaring to an impressive €213 billion in 2023, marking a remarkable 2.4x growth since 2019.
Key Takeaways
Venturing into the heart of this thriving ecosystem, the latest Dealroom report – Central and Eastern European startups 2024 uncovers a dynamic landscape shaped by the relentless pursuit of innovation and fueled by the vision of pioneering founders. With over 26,000 startups, the CEE region serves as a hotbed of creativity and ingenuity, attracting attention from investors worldwide.
However, beneath the surface of this remarkable growth lies a tale of both opportunity and challenge. While startups and scale-ups backed by venture capitalists have experienced exponential growth, adding €21 billion in value over the past five years, access to capital remains a persistent hurdle for many aspiring entrepreneurs. Despite the presence of over 7,000 VC-backed startups, concentrated primarily in Estonia, Lithuania, and Poland, securing funding continues to pose a significant challenge for startups across the region.
Most promising sectors
Yet, amidst these challenges, there are signs of resilience and progress. Funding into burgeoning sectors such as Climate Tech and Artificial Intelligence (AI) is rising, with AI startups alone accounting for 15% of total CEE VC investment over the last five years. In Q1 2024, AI startups captured 45% of CEE VC investment volume, signaling a growing appetite for cutting-edge innovation within the region.
Furthermore, the CEE startup ecosystem boasts a robust pipeline of early, breakout, and late-stage startups, with over 5,000 ventures embarking on the venture-backed journey in the past decade. While the average conversion rate from Seed round to Series A funding stands at an impressive 35%, indicating a healthy flow of early-stage investment, the median duration of a venture-backed journey for exited companies is a mere four years, underscoring the rapid pace of growth and development within the ecosystem.
Join us at the Tech Tour South East 2024 Investment Programme in Athens on 23 October 2024, to discover thirty of the most promising companies from Southeastern Europe and Israel. Secure your pass now!