TLDR:
Key Points:
- Venture investment in Eastern Europe fell in 2023 but is expected to rebound, with a focus on AI and innovative technologies.
- Top-performing countries included Poland, Greece, Lithuania, Czechia, Estonia, and Romania.
Summary:
The “Venture in Eastern Europe Report” indicates a decline in venture investment in the region in 2023, following a challenging year for tech start-ups globally. However, there are signs of recovery, particularly in AI and other innovative fields related to the green and digital transition. Key countries such as Poland, Greece, Lithuania, Czechia, Estonia, and Romania emerged as top performers in terms of venture deals.
The report emphasizes the maturation of the startup ecosystem in Central and Eastern Europe, with a shift towards sustainable business models and profitability. Late-stage investments, especially in series A and series B financing, remained robust in 2023, demonstrating potential for high-growth and profitable startups in the region. Western investors showed interest in Central and Eastern Europe for its stability and growth prospects.
Greece and Poland led in follow-on rounds, with significant contributions to the total investment volume. The report highlights the success of AI-related startups in securing major venture deals in 2023, with companies like ElevenLabs achieving unicorn status and serving as inspiration for the region. Other innovative industries drawing investment included solar energy, 5G technology, data streaming services, and biotechnology.
The report predicts a healthy outlook for 2024, with the startup ecosystem in Central and Eastern Europe expected to continue maturing. Increased international investments and a focus on innovation could transform the region into a global player in the tech industry. With a strong base of tech talent and promising startups, the next few years are likely to see a wave of industry-leading companies emerging from Central and Eastern Europe.
