The first half of 2024 has proven to be a difficult period for startups in Serbia and the wider Western Balkans, contrasting sharply with the growth seen in other parts of Europe. According to an analysis by The Recursive, while Central and Eastern Europe (CEE) is experiencing a surge in investments, the Western Balkans, including Serbia, are struggling to attract the same level of funding, highlighting the region’s ongoing challenges.
Central and Eastern Europe: A Flourishing Startup Hub
Despite facing global challenges like the pandemic, geopolitical tensions, and economic instability, Central and Eastern European countries have managed to build resilient startup ecosystems. Nations like the Czech Republic have emerged as leaders, drawing significant investments and demonstrating a mature and vibrant startup culture. The success of Czech startups, bolstered by strong investor confidence, underscores the potential of the CEE region as a growing powerhouse in the tech world.
Poland and Greece are also seeing positive trends, attracting stable investments across various smaller funding rounds. Although these countries may not match the investment volumes of the Czech Republic, their ability to draw consistent funding is contributing to the sustained growth of their tech sectors. Notable successes, such as Croatia’s Verne and the Czech Republic’s Rohlik, highlight the impact of state incentives on fostering a supportive environment for startups.
Western Balkans: A Struggling Market
In contrast, the Western Balkans, particularly Serbia, have not experienced similar growth. The region remains at an early stage of market development, with significantly less capital invested in startups compared to their CEE counterparts. While countries like Romania, Hungary, Bulgaria, and Slovakia continue to see activity in smaller funding rounds, the Western Balkans are lagging behind, reflecting the ongoing challenges in the region.
Despite the overall gloomy outlook, there are some success stories. For instance, Native Teams from North Macedonia secured €6.3 million in funding, and Collabwriting, a Serbian startup, has raised €1.4 million so far. These examples provide a glimmer of hope, suggesting that with the right support and investments, the Western Balkans could begin to close the gap with more developed startup ecosystems in Central and Eastern Europe.
Moving Forward: A Call for Collaborative Effort
For Serbia and the Western Balkans to make significant progress, a concerted effort is needed to attract more investments, nurture local talent, and create a favorable environment for startup growth. This will require collaboration between governments, investors, and the startup community to overcome the barriers that have hindered the region’s progress so far.
With the right strategies and support, the Western Balkans could eventually emerge as a competitive player in the European startup scene, but the road ahead is challenging. The success of neighboring regions serves as both a benchmark and a motivation for what could be achieved with the right focus and determination.
