Mapping Central and Eastern Europe’s VC ecosystem

Russia’s invasion of Ukraine has been disastrous for Central and Eastern Europe, yet the region’s startup ecosystem remains resilient.

In the midst of geopolitical instability and harsher market conditions, startups in CEE have secured €2.4 billion (about $2.5 billion) across 312 deals so far this year, according to PitchBook data. In terms of capital raised, the region is already two-thirds of the way to last year’s record total.

Although much smaller than other European venture markets, CEE is known for its strong digital economy and startup-friendly governments. As the region produces more unicorns and high-profile tech companies like Skype and Bolt, investors are becoming increasingly open to funding startups from the area.

Estonia is leading the region in terms of capital raised, but other countries like Poland and Croatia are attracting more attention. On the other hand, Russia has seen VC capital decrease significantly this year as the war with Ukraine causes investors and companies to distance themselves from the country.

Here’s a snapshot of the CEE venture ecosystem, exploring highlights across dealmaking, fundraising and exit activity.
 

 

Featured image by Juanmonino/Getty Images