The startup ecosystems of Belgrade and Novi Sad have reached a significant milestone in 2023, achieving their highest valuation to date at $1.116 billion. This marks a remarkable 66% increase compared to the previous year, solidifying their position as the leading startup ecosystem in the Western Balkans and ranking 10th in Central Europe.
Belgrade and Novi Sad’s ecosystem stands out not only for its impressive valuation but also for the level of financial support it provides in the early stages of innovation. It surpasses other European ecosystems, including Vilnius, Prague, Warsaw, and Ljubljana, in this regard.
Founder Demographics and Global Ambitions
The average age of founders in the Belgrade and Novi Sad ecosystem is 35 years, which is notably younger than the European average by three years. Additionally, the ecosystem boasts a higher-than-average percentage of women in founding teams, exceeding both European and global averages. Notably, 64% of startups in the region target the global market for their innovative products, demonstrating a strong international focus.
Transitioning from Activation to Globalization
The ecosystem is on the cusp of a significant transition, moving from the activation phase to the globalization phase. A key indicator of this progress is that 33% of startups are led by serial founders, reflecting a growing entrepreneurial mindset geared toward the development and commercialization of innovations.
Successes and Recommendations
The Startup Genome 2024 report highlights several successes of the Belgrade and Novi Sad startup ecosystem:
- Record-high ecosystem valuation
- A rapidly growing community with a high percentage of professionals
- A robust talent pool that fosters the formation of diverse companies and teams
- Experienced founders returning to the ecosystem as either founders or investors
- Strong early-stage financing resilience
- A pronounced global mindset and initial market traction
- Notable advancements in technologies such as artificial intelligence
The report also offers recommendations for further ecosystem development, including the continued gathering of key stakeholders to build a stronger community, the establishment of more venture capital funds, and the attraction of foreign startups to the region to enhance experience and knowledge.
Strategic Recommendations for Ecosystem Growth
The research suggests that ecosystems with a dedicated coordination body responsible for tracking progress and making improvement recommendations tend to see higher exit values and a greater number of startups reaching Series A financing. Establishing such a body in Serbia could significantly contribute to the evolution of its startup ecosystem, helping it transition fully from activation to globalization.
The full Startup Genome 2024 report will be officially released on June 10, 2024, during London Tech Week. This event will offer further insights into the progress and strategies of startup ecosystems worldwide.
