Traditionally, Bulgarian startups operated on limited resources, relying heavily on bootstrapping. However, the last decade has witnessed a significant shift. Since 2012, Bulgaria has seen the emergence of multiple VC funds, catalyzing the ecosystem’s growth.
Key Players Driving Growth
The Bulgarian VC ecosystem started in 2012 with the help of the European Investment Fund (EIF) and local government efforts.
Despite challenges presented by the pandemic, the Bulgarian growth equity and venture capital ecosystem saw a lot of activity as of 2020. New Bulgaria-based funds launched, and second and third-generation funds successfully closed fundraising rounds.
Fund managers are raising money from mostly private sources and are becoming increasingly regional.
Some of the key venture capital firms include:
- LAUNCHub Ventures: Established in 2012, LAUNCHub Ventures is a prominent early-stage venture capital fund focusing on technology startups in Central and Southeastern Europe (CEE and SEE). The firm supports companies at Seed and Series A stages, with initial investments ranging from €300,000 to €2 million, and can lead funding rounds up to €4 million. In 2021, LAUNCHub raised a €74 million fund, marking one of the largest in the region. Their diverse portfolio includes over 90 startups, such as Quantive, FintechOS, Giraffe360, and OfficeRnD. LAUNCHub focuses on sectors like SaaS, Fintech, Proptech, AI, Digital Health, Blockchain, IoT, Marketplaces, and Big Data.
- Eleven Ventures: Founded in 2012, Eleven Ventures has been instrumental in nurturing early-stage startups in Southeast Europe. With a portfolio exceeding 120 companies, Eleven emphasizes four key verticals: Fintech, Healthcare, Future of Work, and Sustainable Food. They typically invest between €250,000 and €1 million initially, with the possibility of follow-up investments up to €2.5 million. Notable investments include Payhawk, Dronamics, SMSBump, Kanbanize, and NitroPack. Their approach focuses on empowering local entrepreneurs to achieve global success.
- BrightCap Ventures: BrightCap Ventures is an early-stage venture capital firm based in Sofia, partnering with inspiring global founders who leverage local engineering talent. They invest in companies with defensible technology and significant global growth potential, focusing on high-growth sectors like SaaS and deep tech. BrightCap’s portfolio includes companies such as FITE, Vedamo, Cloudpipes, Pliant, Scaleflex, and KardiAI. They offer both early-stage investments, ranging from €50,000 to €200,000, and growth-stage funding up to €3 million.
- Impetus Capital: Founded in 2015 and based in Sofia, Impetus Capital is a venture capital firm that invests across various stages, including seed, early, and later stages. They specialize in private equity investments in small and mid-market Bulgarian companies, providing growth equity and expansion capital.
- BlackPeak Capital: Established in 2014, BlackPeak Capital is a private equity firm focusing on growth equity investments in high-growth small and medium-sized enterprises across Southeast Europe. They target companies led by visionary management with proven track records, preferring export-oriented businesses with niche positions in regional or global markets. BlackPeak Capital’s investors include the European Investment Fund, the European Bank for Reconstruction and Development, and the International Finance Corporation.
- Silverline Capital: Silverline Capital provides mezzanine and equity financing solutions to outstanding mid-market businesses in Bulgaria, supporting both organic growth and acquisition strategies. They focus on partnering with companies that have strong management teams and clear growth potential, offering flexible financing solutions tailored to each business’s unique needs.
- Vitosha Ventures: Vitosha Venture Partners is a €26 million early-stage venture capital fund based in Sofia, Bulgaria. They invest between €25,000 and €1 million in early-stage and growth-stage companies that are based in or related to Bulgaria.
The Bulgarian Private Equity and Venture Capital Association (BVCA) is central to the VC and entrepreneurial community, promoting private investment in innovative startups.
Equity investments in Bulgarian startups are projected to reach record highs by 2030.
The Fund of Funds (FoF) is allocating €100 million in public resources to fund managers, aiming to increase this to €130 million with private capital1. An additional €170 million from the FoF will be available under the same program
Bulgaria has been transitioning from an outsourcing destination into a major innovation hub.
Today, it has over 400 startups, 15 venture capital and growth equity firms, and an increasing number of accelerators, supporting associations, and co-working spaces.
More founders are reaching Series A or later rounds. As of early 2021, there was over €200 million in VC funding available for local entrepreneurs
