Venture Capital Investments in Eastern Europe

The European tech ecosystem has significantly transformed over the past two decades, with Eastern Europe emerging as a key player in the venture capital landscape. Once underestimated due to limited funding and infrastructure, the region has now positioned itself as a global contender in the technology and startup scene.

Companies like Skype, Booking.com, and Spotify demonstrated that world-class businesses could emerge from Europe, inspiring a new wave of entrepreneurs. Eastern Europe, in particular, has developed a strong foundation in technical education, resilience, and an increasingly supportive investment climate. The following analysis explores the region's venture capital landscape, highlighting key trends, investment distribution, and the performance of leading countries and companies.

The analysis, made by How To Web and Infobip, shows that Eastern Europe recorded €3.89 billion across 1,286 venture deals in 2024, marking a stabilization after post-pandemic fluctuations. Eight countries accounted for over 90 posto of this volume: Turkey (€1,012.2M), Poland (€592.1M), Greece (€536.6M), Czech Republic (€426M), Lithuania (€367M), Estonia (€342.3M), Romania (€130.7M), and Slovakia (€129.8M). This concentration highlights the region’s uneven development, with mature ecosystems like Turkey and Poland leveraging follow-on funding for scale-ups, while smaller markets such as Albania and Moldova remain nascent.

Late-stage investments (Series A to C) dominated the landscape, accounting for over 63 posto (€2.44B) of total investment volume. Series A attracted €633.7M, Series B received €609.6M, and Series C led with €1.19B. Seed-stage funding was significant, totaling €634M, closely matching Series A investment volume. Pre-seed investments, while still lagging, showed signs of recovery, reaching €104.6M, up from €99.8M in 2023.

Countries like Turkey, Poland, Greece, and the Czech Republic had a broad range of investment deals across all stages. In contrast, nations such as Serbia, North Macedonia, and Moldova had investment deals concentrated in pre-seed and seed rounds. Follow-on investments accounted for 92.8 posto (€3.6B) of the total venture capital volume, highlighting a preference for supporting existing high-growth startups rather than new entrants.

Investment trends indicate a growing preference for deep tech, AI, and fintech sectors, aligning with global technology trends. Finance, aerospace, e-commerce, and marketing were among the leading sectors in venture capital investments. Technical industries such as big data, cybersecurity, and robotics received increasing investor attention, accounting for nearly 50% of the capital raised. Despite notable tech giants like UiPath and Bitdefender, Romania and other Eastern European countries still face challenges in early-stage funding, necessitating further support from investors and policymakers.

Romania continued its streak of surpassing the €100M investment mark for the fourth consecutive year, reaching €130.7M in 2024. The number of transactions increased by 31.1 posto, from 61 in 2023 to 80 in 2024, despite only a minor increase in total investment volume. FintechOS led the Romanian investment landscape with a €54M Series C round, accounting for nearly 41.3 posto of the total volume. Pre-seed investments nearly doubled in 2024, indicating a potential revitalization of early-stage funding in the country.

The region’s fragmented markets—spanning 22 countries with diverse regulations—have inadvertently fostered resilience. Startups like Estonia’s Starship Technologies (€90M Series C) and Slovakia’s CloudTalk (€25.2M Series B) scaled globally by navigating this complexity early. Similarly, Poland’s Kontakt.io (€41.7M Series C) expanded its IoT solutions across 50+ markets, demonstrating the "adaptability advantage" ingrained in Eastern European ventures.

The market has seen a shift towards capital efficiency and sustainability, with investors favoring startups that demonstrate clear traction and validation. Economic factors, including inflation and geopolitical uncertainty, have influenced investment strategies, prompting a cautious approach. The venture capital industry remains a long-term game, with investors looking for high returns on equity investments over time. Follow-on investments continued to dominate, reflecting investor confidence in scaling existing successful companies rather than taking risks on unproven startups.

Eastern Europe needs to address funding gaps in both early-stage and late-stage investments to ensure a steady pipeline of high-growth startups. A more supportive regulatory environment, particularly for cross-border investments and startup-friendly policies, is essential to further accelerate growth. The region should continue fostering vibrant tech hubs and expanding collaboration between local and international investors to drive more funding opportunities. Encouraging deep-tech research and AI innovation will position Eastern Europe as a global leader in emerging technologies.

Last year demonstrated a maturing Eastern European venture capital market, characterized by increased investment volume, strong follow-on funding, and significant contributions from late-stage investments. Countries like Turkey, Poland, Greece, and the Czech Republic emerged as dominant players, with Romania also showing resilience and growth. The market is experiencing a cycle shift, with a renewed focus on disciplined investment, capital efficiency, and sustainable scaling.

Despite these successes, challenges remain, particularly in early-stage funding. Encouraging more pre-seed and seed investments will be crucial for sustaining long-term growth. Investors and policymakers must work together to create an environment that nurtures innovation and attracts both local and international capital.

Ultimately, Eastern Europe is on a path to becoming one of the world's leading startup ecosystems. With continued focus on strategic investments, deep tech, and AI, the region is poised to build globally competitive companies that can drive economic transformation and technological advancements.