• How To Web and partners unveiled their Venture in Eastern Europe 2024 Report
• The presentation took place on February 19th in London, symbolizing the bridge between the East and the West
• For the 4th time, How To Web’s experts highlighted the key trends in the region’s VC/startup scene
• The Report’s authors share their exclusive takes that didn’t make it to the final text of the Report

On February 19th, Canva HQ in London hosted the launch event of How To Web’s Venture in Eastern Europe 2024 Report. The launch event was made possible through collaboration between How to Web and Infobip, in partnership with Underline Ventures, BCR Seed Starter Romania, Metis Ventures, and with the support of Global Tech Connect, UK/Romania Business, Endeavor Romania, Romanian United Foundation, Launch Romania.

The Report and Its Launch Event as a Milestone for CEE’s Startup Scene

Staged in London, the event marked a major milestone in connecting Eastern Europe’s vibrant startup ecosystem with Western innovation and investment networks. Designed to offer a comprehensive overview of the region’s startup landscape, the event showcased key trends, successful ventures, and significant venture capital activities, as revealed in the Report.

Launched in 2021, the Venture in Eastern Europe report initially focused on analyzing Romanian venture deals. Over time, its scope expanded to cover the entire Eastern European startup ecosystem. The 2024 edition provides in-depth insights into the growth of tech startups, tracking their journey from pre-seed funding to successful exits and IPOs.

The launch event became an interactive platform for investors, industry leaders, and entrepreneurs to discuss the future of Eastern Europe’s startup scene. Attendees had the opportunity to engage in meaningful discussions, explore emerging opportunities, and forge strategic collaborations that could shape the region’s innovation landscape. With a growing global interest in Eastern European startups, this event plays a crucial role in fostering connections that drive growth and investment in the region.

Key Insights of the Report

The Report was made publicly available on February 20th. You are welcome to find the full report, including its interactive data sets, here. Putting it very briefly, the key highlights are as follows:

• Record Investment Growth – EUR 3.89B invested across 1,286 deals, marking a 16x increase since 2017.
• Mature Ecosystem – Late-stage investments (Series A-C) dominated, making up 63% of total funding.
• Top Investment Destinations – Turkey, Poland, and Greece led the region, each surpassing EUR 500M+ in investments.
• Romania’s Consistency – Achieved EUR 130.7M in venture deals, its fourth consecutive year exceeding EUR 100M.
• Local Capital on the Rise – Growing domestic investor confidence alongside strong international interest.
• Seed vs. Late-Stage Balance – Seed funding (EUR 634M) closely matched Series A investments (EUR 633.7M), showing early-stage growth.
• Challenges in Pre-Seed Funding – Pre-seed rounds still struggling, with only EUR 104.6M raised.
• Follow-On Rounds Dominated – 92.8% (EUR 3.6B) of total investments were follow-on rounds, reflecting sustained investor confidence.
• Top 20 Deals Led Market – Top 20 startups raised over EUR 2B, accounting for 51.6% of total funding.
• Eastern Europe’s Global Role – The region is emerging as a key tech powerhouse, attracting top investors worldwide.

Bonus Insights

ITKeyMedia suspected that some of the authors’ ideas and insights didn’t make it to the final report. So we approached How To Web’s CEO Alexandru Agatinei and investor relationship manager Nicoleta Pîrvu for a deeper dive:

Are there any Eastern European countries that you see as overlooked next big investment hotspots?

Nicoleta Pîrvu: Eastern Europe is increasingly drawing investor interest, with several countries on track to become major investment hubs. This momentum is fueled by a rapidly growing tech sector and a mix of untapped potential and competitive advantages. While much of the attention in Eastern Europe has traditionally gone to countries like Poland and Estonia, several other markets are quietly positioning themselves as the next big investment hotspots. Romania, for instance, continues to gain momentum, with a growing number of startups securing international funding, including FintechOS’s EUR 54M Series C round in 2024. Bulgaria is also emerging as a key player in energy and deep tech, with startups like AMPECO raising EUR 23.4M and proving the country’s potential. Similarly, Slovakia is also attracting more investors, particularly in deep tech and fintech, with EUR 129.8M in venture investment in 2024, reflecting increasing confidence in its startup ecosystem.

Alexandru Agatinei: Eastern Europe is increasingly recognized as a fertile ground for investment, with several countries poised to become the next major hotspots. This surge in interest is driven by a combination of factors, including the region’s burgeoning tech sector. Notably, established economies like Poland, with their dynamic cities of Warsaw and Krakow, are attracting significant attention due to their undervalued markets and expanding international appeal. Romania, with its rising cultural and economic influence in cities like Bucharest, Cluj-Napoca, and Timisoara, is also gaining traction, especially within the technology sector. Beyond these more established players, countries like Bulgaria are emerging as compelling VC destinations.

Are there any underrepresented tech verticals in Eastern Europe that investors should watch?

NP: Eastern Europe presents promising opportunities in several underrepresented tech verticals that investors should monitor closely. Notably, the region’s geopolitical context makes defense and cybersecurity increasingly critical, with a growing demand for innovative solutions in these sectors. The energy sector, particularly smart grids, energy storage, and advanced nuclear technologies, also hold significant potential, driven by the need for sustainable and secure energy solutions. Furthermore, deep tech and robotics, while still nascent in the region, are poised for growth, leveraging Eastern Europe’s strong engineering talent and research capabilities.

Which areas within AI are receiving the most attention from investors?

AA: The areas that spark the most investors’ attention apparently are dual-use/defense and/or industrial applications.

NP: Artificial intelligence continues to make its mark across various industries, certain areas are emerging as particularly attractive for investment, especially in sectors with high strategic importance. Among these, dual-use AI technologies, those that can serve both defense and industrial applications, are receiving growing attention. Given the increasing demand for enhanced security, automation, and efficiency in both military and industrial contexts, AI is playing a pivotal role in shaping the future of these sectors. Investors are particularly focused on how AI can drive innovation in defense and industrial applications, offering significant opportunities in the years to come

Despite the growth, are there critical funding gaps at certain startup stages?

NP: Despite the ongoing growth and innovation in the startup ecosystem, there are still critical gaps in funding at certain stages, particularly in the pre-seed phase. This stage is crucial for early-stage startups, but it also represents one of the most challenging times to secure capital. In 2024, while there was a slight recovery in pre-seed investments, reaching EUR 104.6M up from EUR 99.8M in 2023, it remains well below the EUR 140M seen in 2022. However, the slight recovery in 2024 may indicate a potential turning point, indicating a gradual return of investor confidence in early-stage startups.

How strong is the push toward sustainability and ESG-driven investments in CEE compared to other parts of Europe?

NP: There’s a growing awareness of ESG factors and increasing interest in impact investments in CEE, but the region’s venture capital ecosystem is still maturing compared to Western Europe. Western Europe has a longer history of ESG investing, more established regulatory frameworks, and greater investor pressure for sustainable practices. However, CEE has the potential to catch up quickly. The region has a strong talent pool, a growing tech sector, and increasing interest from international investors who prioritize ESG.

How well-represented are female entrepreneurs in Eastern European startup funding compared to other parts of Europe?

NP: Female entrepreneurs in Eastern Europe face a persistent challenge in securing startup funding, lagging significantly behind their Western European counterparts. While there’s a growing recognition of this disparity and increasing efforts to promote gender diversity within the region’s startup ecosystem, women still receive a disproportionately small share of venture capital. However, positive trends are emerging, with a rise in female investors and programs specifically designed to empower women founders, indicating a gradual shift towards greater inclusivity.

How do startup exit trends compare to those in Western Europe or the US?

NP: Startup exit trends in Eastern Europe generally lag behind those in Western Europe and the US, reflecting differences in market maturity and investment ecosystems. While there’s a growing number of successful startups, exits through acquisitions or IPOs are less frequent. Eastern European startups often face challenges in attracting large-scale investments and navigating complex regulatory environments, which can hinder their growth and exit potential.

Can you say that there are more international co-investments between Eastern and Western European VCs than we had before?

NP: We can definitely say that there has been a noticeable increase in international co-investments between Eastern and Western European VCs in recent years. This trend highlights a growing sense of collaboration and a shared recognition of the opportunities that span both regions. VCs from the East and West are now more actively partnering, pooling resources, and sharing expertise, which ultimately strengthens the funding landscape and creates more opportunities for cross-border growth. This wasn’t as common in previous years, but it’s becoming more of a defining feature of the current investment environment.

How significant is the role of corporate venture capital in the region’s startup growth?

AA: CVCs represent still just a tiny portion of the total volume of investment, but seeing new funds such as BCR’s recent BCR Seed Starter Romania and Bitdefender’s Voyager Ventures shows signs of a new wave of strategic investments in the upcoming years.

NP: Corporate venture capital has traditionally represented a small portion of the total investment volume in the region’s startup ecosystem. However, we’re beginning to see signs of change as more companies recognize the strategic value of investing in startups to fuel innovation and stay competitive. While CVCs still make up only a small portion of overall investments, recent initiatives such as BCR’s BCR Seed Starter Romania and Bitdefender’s Voyager Ventures do reflect a growing interest in strategic corporate investments.

Which Eastern European governments have the most effective startup-friendly policies, and how?

NP: Several Eastern European governments have implemented effective startup-friendly policies to foster innovation and entrepreneurship. Estonia stands out with its e-Residency program, offering global entrepreneurs the ability to establish and manage businesses digitally, along with a 0% corporate tax on reinvested profits. Poland is also notable for its expanding ecosystem, supported by government initiatives promoting innovation and funding. Lithuania focuses on attracting fintech startups with its regulatory sandbox and favorable licensing, while the Czech Republic emphasizes innovation and technology transfer through dedicated programs.

In Summary

To conclude in the words of Infobip’s Chief Business Officer Ivan Ostojić, ‘The Report highlights how Eastern Europe is evolving into a global tech powerhouse fueled by deep engineering expertise, capital efficiency, and growing cross-border collaboration. Companies like UiPath, Bolt, and Infobip have already demonstrated the region’s potential, and with initiatives like Infobip Startup Tribe and Infobip Shift, the ecosystem is stronger than ever. As the region’s startups and scaleups embrace ambition over modesty, they attract unprecedented investment and redefine Europe’s role in global innovation. The time to invest in and collaborate with this thriving ecosystem is now. Eastern Europe is no longer just an emerging market—it is a force shaping the future of technology.’

How To Web’s Venture in Eastern Europe 2024 Report clearly traces how Eastern Europe’s startup ecosystem continues to evolve into a dynamic and competitive player in the global venture market. With record-breaking investments, a maturing funding landscape, and increasing local capital participation, the region is proving its potential as a thriving hub for innovation. While challenges remain, particularly in pre-seed funding, the steady rise of late-stage investments and strategic international interest signal sustained growth. As Eastern European startups gain global recognition, the region is poised to cement its role as a powerhouse for technology and entrepreneurship.