Ecosystem Overview
The Bulgarian startup ecosystem has undergone a significant transformation over the past decade. From a niche market with limited funding, it has evolved into a mature ecosystem with numerous successful exits and a growing volume of investment:
- 37th place in the global Startup Ecosystem Index — a leading position in the South-Eastern Europe region.
- Approximately EUR 9 billion total ecosystem value, comprising active companies and realised exits.
- Over 1,000 active startups, concentrated primarily in Sofia but with a growing presence in Plovdiv, Varna and Burgas.
- Over $91 million annual funding raised by Bulgarian startups (including international rounds).
- Strong sectors — fintech, SaaS, artificial intelligence, healthtech, defence/security and gaming.
The adoption of the euro from 1 January 2026 further enhances Bulgaria's attractiveness to international investors by eliminating currency risk and facilitating cross-border transactions.
Venture Capital and Investment Landscape
The Bulgarian VC market manages approximately EUR 1 милиард under management, distributed among several key funds and platforms:
| Fund / Platform | Focus | Typical Investment |
|---|---|---|
| Eleven Ventures | Pre-seed, Seed | EUR 100K for a 12 % stake (accelerator model) |
| LAUNCHub Ventures | Seed, Series A | EUR 500K – EUR 3M |
| Neveq | Growth, Buyout | EUR 2M – EUR 10M |
| BrightCap Ventures | Seed, Series A | EUR 500K – EUR 5M |
| SeedBlink | Equity crowdfunding | EUR 100K – EUR 1M (syndicated investments) |
In addition to local funds, an increasing number of international VCs are investing in Bulgarian startups, particularly at later stages (Series B+). The presence of European funds such as Earlybird, Credo Ventures and others contributes to the internationalisation of the ecosystem.
Government Support and Institutions
The Bulgarian government provides various instruments to support startups and innovation:
- Sofia Tech Park — the first science and technology park in Bulgaria, providing infrastructure, laboratories and co-working spaces. Host to numerous startup events and acceleration programmes.
- Fund of Funds (Fund Manager of Financial Instruments in Bulgaria) — manages public funds invested through selected VC funds. A significant portion of local funds' capital originates from these programmes.
- Bulgarian Development Bank (BDB) — provides credit lines and guarantees for SMEs and startups, including programmes for innovative enterprises.
- EU Structural Funds — Bulgaria absorbs funds from programmes such as "Competitiveness and Innovation", Horizon Europe and Digital Europe to support innovative enterprises.
- Startup Visa — since December 2025, Bulgaria has introduced a special visa for startup founders from third countries. The requirement is a minimum investment of BGN 100 000 (approximately EUR 51,130) and an approved business plan. The visa grants the right to long-term residence and conduct of business activities.
Legal Form for Startups
EOOD — The Standard Choice
The single-member limited liability company (EOOD) remains the most popular legal form for starting a business in Bulgaria. With a minimum capital of EUR 1, fast registration (3–7 business days) and limited liability for the owner, the EOOD is the ideal starting option for most entrepreneurs.
DPK — The Innovative Alternative
The Variable Capital Company (DPK), introduced in December 2024, is specifically designed for the needs of startups and technology companies. Key advantages include:
- No minimum capital — no initial capital required upon incorporation.
- Flexible capital — capital changes do not require registration in the Commercial Register, significantly facilitating fundraising rounds.
- Built-in vesting support — the DPK allows issuance of shares with vesting rights, which is the standard practice for startup compensation of co-founders and key employees.
- ESOP (Employee Stock Option Plan) — the form facilitates the creation of employee option plans, a critical tool for attracting and retaining talent.
- Different share classes — possibility of issuing ordinary and preferred shares with different rights (voting, dividends, liquidation preferences).
The DPK is expected to gradually become the preferred form for startups planning to raise venture capital.
Tax Incentives
Bulgaria offers some of the most attractive tax conditions in the EU for startups and technology companies:
| Indicator | Rate | EU Comparison |
|---|---|---|
| Corporate tax | 10 % | EU average: 21.27 % |
| Personal income tax (PIT) | 10 % | Flat tax — no progression |
| Dividend tax | 5 % | Final withholding tax |
| Social security (employer) | ~18–19 % | Total ~33 % (employer + employee) |
The combination of low taxes and relatively low social security contributions makes Bulgaria exceptionally competitive for high-value-added companies with moderate salary costs.
Talent and Human Resources
The Bulgarian startup ecosystem relies on strong engineering and technology talent:
- Strong sectors — software engineering, artificial intelligence (AI), fintech, cybersecurity. Bulgarian universities (SU, TU, NBU) produce a significant number of IT specialists annually.
- Average remuneration — for a software developer: EUR 2 500–4 500 per month (gross), which is 2–3 times lower than Western Europe at comparable quality.
- Brain drain vs. remote work — the emigration of talent remains a challenge, but the growing trend of remote work allows Bulgarian companies to reach international talent, and Bulgarian specialists to work for local startups from abroad.
- Multilingualism — high level of English proficiency, especially among IT specialists and the younger generation.
Accelerators and Support Organisations
The Bulgarian startup ecosystem has a well-developed network of accelerators, incubators and support organisations:
- Eleven Ventures — the leading startup accelerator in Bulgaria and South-Eastern Europe. The programme provides EUR 100 000 for a 12 % stake, mentorship, networking and follow-on investments.
- Sofia Tech Park — in addition to physical infrastructure, the park organises innovation acceleration programmes, including access to laboratories and research equipment.
- #FutureUnicorns — a San Francisco-based programme connecting Bulgarian startups with Silicon Valley — mentorship, networking and access to American investors.
- BESCO (Bulgarian Entrepreneurship Center) — an industry organisation uniting startups, investors and mentors. Organises annual conferences and startup weekends.
- Campus X — a co-working space and startup community in Sofia, providing office infrastructure, events and networking.
Successful Exits and Notable Companies
The Bulgarian startup ecosystem boasts a number of remarkable successes that inspire new generations of entrepreneurs:
- Payhawk — a fintech company for corporate expense management, reaching a valuation of over EUR 1 billion (unicorn status). Founded in Sofia, Payhawk is among the most successful fintech startups in South-Eastern Europe.
- Gtmhub / Quantive — a strategy and OKR (Objectives and Key Results) management platform that attracted significant funding and was acquired at a high valuation.
- Chaos Group — a global leader in 3D visualisation software (V-Ray). Founded in Sofia, the company was acquired by Enscape at a valuation of over $1 billion.
- Telerik — a developer tools company acquired by Progress Software for $262,5 милиона in 2014 — one of the first landmark exits in Bulgarian startup history.
These successes demonstrate the potential of the Bulgarian startup ecosystem to produce world-class companies, particularly in the fintech, SaaS and deep tech sectors.
Frequently asked questions
Need assistance?
The Innovires team specialises in legal services for startups — from incorporating DPK and EOOD entities to structuring investment rounds, ESOP plans and regulatory compliance.