Bulgaria’s Rise from Outsourcing to Deeptech Powerhouse
▼ Summary
– Bulgaria is transitioning from an outsourcing destination to a hub for deep tech and innovation, leveraging world-class talent, favorable policies, and a growing startup culture to compete on the European stage.
– The country has attracted global tech giants due to its skilled workforce and cost efficiency, with a notable representation of women in tech, holding 29% of ICT roles, nearly double the EU average.
– Sofia was named the most cost-effective city for fintech in 2019/2020, and Bulgarian startups raised over €264 million in 2023, marking a significant shift towards fostering homegrown innovation.
– Bulgaria’s tech success stories include Telerik and Payhawk, with startups attracting over €1 billion in investment from 2018 to 2023, particularly in AI and deep tech.
– The #BreakingGrounds initiative aims to rebrand Bulgaria as a European deep tech leader by 2027, connecting startups with global investors and generating significant deals, while expanding its reach to showcase Bulgarian tech at major events.
Bulgaria is rapidly transforming from an outsourcing destination into a thriving hub for deep tech and innovation, proving that strategic vision and collaboration can reshape an entire ecosystem. While many nations struggle to establish themselves in the competitive tech landscape, this Balkan country has leveraged its strengths—world-class talent, favorable policies, and a growing startup culture—to emerge as a serious contender on the European stage.
A Strong Foundation for Growth
For decades, Bulgaria has attracted global tech giants like Microsoft, SAP, and Oracle, drawn by its highly skilled workforce, cost efficiency, and flat 10% corporate tax rate. But what truly sets the country apart is its exceptional representation of women in tech, with nearly 29% of ICT roles held by women—almost double the EU average. This inclusive approach has expanded the talent pool and positioned Bulgaria as a leader in diversity within the sector.
The country’s fintech potential was further validated when Sofia was named the world’s most cost-effective city for fintech in 2019/2020. Since then, Bulgaria has shifted focus from outsourcing to fostering homegrown innovation, with startups raising over €264 million in 2023 alone—a fourfold increase from five years prior.
From Local Success to Global Ambition
Bulgaria’s first major tech success story was Telerik, a developer tools company acquired for $262.5 million in 2014. This paved the way for Payhawk, the country’s first homegrown unicorn, which achieved a $1 billion valuation in 2022. Today, Bulgarian startups are attracting significant investment, particularly in AI and deep tech, with over €1 billion flowing into the sector between 2018 and 2023.
Peter Tsatchev, Principal at LAUNCHub Ventures, notes that Bulgarian founders now think globally from day one. “We’re seeing entrepreneurs building products that compete with startups from London or New York,” he says. “The challenge isn’t access to capital—it’s inspiring more people to take the leap into entrepreneurship.”
Rebranding Bulgaria’s Tech Identity
Despite these successes, Bulgaria faced a perception problem—many still viewed it as an outsourcing hub rather than an innovation leader. To change this narrative, the Bulgarian Small and Medium Enterprise Promotion Agency (BSMEPA) launched #BreakingGrounds, a bold initiative aimed at positioning the country as a European deep tech leader by 2027.
Through strategic delegations at major tech events like Web Summit, Slush, and VivaTech, the initiative has connected Bulgarian startups with over 350,000 investors and innovators, generating €16 million in deals and investments. Evrotrust, a digital identity regtech startup, secured €3.3 million after pitching at Bits & Pretzels, crediting #BreakingGrounds for its global exposure.
The Road Ahead
In 2025, #BreakingGrounds will expand its reach, showcasing Bulgarian tech at ViennaUP, GITEX Europe, and Slush. A new regional delegation model will unite Bulgaria with Hungary, Czechia, Latvia, and Austria, presenting Central and Eastern Europe as a unified tech powerhouse.
Teodor Antonio Georgiev, Co-Founder of Storytelling Studio, emphasizes the importance of collaboration: “When we present CEE as a collective force, we attract more investment and attention. Bulgaria is no longer just aspiring—it’s actively shaping the future of European tech.”
With government support, private sector momentum, and a growing pipeline of ambitious founders, Bulgaria’s tech ecosystem is poised for even greater breakthroughs. The country’s journey from outsourcing to deep tech leadership is a testament to what’s possible when talent, strategy, and vision converge.
(Source: The Next Web)
