Publish date: 8 January, 2024The difficult economic and geopolitical climate in the past year did not stop the development of the native IT ecosystem according to the observations of the job board of H512.com. Technology companies established in Bulgaria or with Bulgarian roots attracted more than $235 million in 2023 (the amounts for some deals were not announced). Although this figure is lower than two years ago, our country continues to provoke serious investor interest.
The annual report for 2023 of the venture capital company Atomico, for example, shows that Bulgaria ranks 24th in Europe in terms of the volume of investments made in startups, which does not include secondary transactions, debt, loans and grants, and according to the annual report of StartupBlink: Global Startup Ecosystem Index 2023 our country ranks first in the startup ecosystems of the Balkans.
In 2023, the undisputed leaders attracting impressive funding include LucidLink ($75 million), Dronamics ($40 million), Plan A ($27 million), Iris.ai ($18.4 million), AMPECO ($13 million) and Endurosat ($10 million).
Cloud Tech = $79 million.
At the end of last year, Bulgarian-American cloud startup LucidLink raised $75 million. The company provides real-time data access and collaboration, and its customers include names like Adobe, A&E Networks, Whirlpool, Shopify, Buzzfeed, Spotify, Paramount Pictures and more. LucidLink will invest the fresh capital in product and engineering updates, expanding the customer portfolio and entering new verticals and geographies.
Romanian startup Kubeark, co-founded by Bogdan Nedelkov and Theophilus Harapkea in 2022, raised $2.8 million. The company is developing a cloud infrastructure management platform that reduces costs for software providers, and will use the investment to accelerate its development and create a global peer network.
Fabrico, a cloud-based system that organizes all the processes of managing manufacturing machinery, received $1.06 million in funding. Fabrico is initially being developed as a product of consultancy Childish, then spun off, and the funds raised will be used to grow the company’s operations in Europe and the US.
Deep Tech = $55 million
The makers of the world’s first unmanned cargo drone, Dronamics, have raised $40 million in funding that will help them launch operations in the UAE. The investment comes three months after Dronamics received €2.5m from the European Commission under the European Innovation Council’s (EIC) ycĸopation programme. The company successfully completed the maiden flight of its Black Swan cargo drone in May 2023 and began commercial operations at the end of the year with Hellenic Post of Greece, along with building a network of drone airports.
EnduroSat, which operates in nano satellite technology and services, raised $10 million. The company will use the investment to increase its market share as well as expand its team, which currently numbers 150 people in offices in Sofia, Luxembourg, Toulouse, Naples, Delaware and Berlin. EnduroSat’s main R&D activity is carried out in Bulgaria, where it has opened a space centre – office space and laboratories for space testing, assembly and qualification.
Transmetrics, which develops AI software to optimize costs in the cargo industry, raised $2.7 million. Since its inception in 2013, Transmetrics has raised nearly €7.5m, and the latest investment will be used for feature optimisation, strategic partnerships, commercial growth, entry into new markets and R&D activities.
INSAIT’s first deeptech startup MLC (The Martian Lawyers Club) attracted $2.2m in investment. The artificial intelligence company was founded by Kamen Brestnicki and Levi Fussell and creates a product that allows developers to customize their games through generative AI for a better user experience.
Startup company D Aerospace, which specializes in designing and manufacturing industrial drones, received $55k in funding to develop and validate its first commercial units.
Sensika Technologies, which uses AI tools to collect, process, and analyze massive volumes of media content, also attracted investment. The exact amount was not disclosed. Sensika plans to use the fresh capital for pre-IPO activities.
Green Tech = $29.3 million.
German company Plan A, founded by Lyubomila Yordanova and specializing in carbon accounting, decarbonization and ESG reporting, raised $27 million. The funds will be used to grow the team to 240 employees, expand market presence in Europe with a focus on France, the UK and Scandinavia, and increase the platform’s functionality.
Hydrogenera (formerly Green Innovation), which develops zero carbon footprint hydrogen production technologies, received $2.2 million in funding. The company has already completed 82 projects in three countries and will use the funding to expand its production capacity and hire new specialists.
In late summer, two more greentech startups attracted funding: the AIOT Cloud ($109k), a real-time energy monitoring and management solution, and Vodoraslo ($33k), the country’s first biological air purifier using microalgae and photosynthesis.
AI = $22.2 million.
Bulgarian-Norwegian AI startup Iris.ai attracted $18.4 million in investment. Iris’ artificial intelligence helps scientists and researchers conduct research by speeding up access to information, mapping and aggregating data from various scientific papers, and the investment will be used to expand the team and further develop the search engine for scientific papers.
Visual content recognition and annotation company Imagga received $2.3 million in funding through the Department of Innovation and Growth’s Recovery and Sustainability Plan. The grant will be used to create an AI-based platform for moderating inappropriate content on the web.
Eilla AI raised $1.5 million in funding, and will use the investment to grow the team and develop the business, which supports M&A, venture capital and private equity professionals by automating processes, analytics and decision-making. The product is used by over 50 banks and venture capital funds.
Mobility Tech = $13 million
In early 2023, AMPECO raised an investment of $13 million. The company, which develops a white-label platform for managing charging stations, will use the funds to accelerate its expansion in the U.S., as well as to expand its engineering and product innovation team. AMPECO works with more than 120 customers in more than 45 markets, and the company’s year-over-year revenue growth has quadrupled.
Tech solutions and services = $10 million.
Over the summer, Bianor Holding, which brings together several software companies, raised BGN 8 million ($4.5 million) from the Bulgarian Stock Exchange. The capital increase helped the group expand through acquisitions (Databreathe, ITIDO) and growth, and its clients include leading companies in the defense, telecommunications, technology and media industries.
Bulgarian SaaS platform TokWise raised $3.3m in funding. It provides an AI-based solution that connects physical assets to electricity markets, serving renewable energy producers, green energy providers, traders and industrial users. TokWise will use the funds to gain a foothold in new European markets.
UPASS raised $1.3 million from the Bulgarian Development Bank’s Equity Investment Fund. The company offers the URBO Studio SaaS management, sales and control solution for the tourism, events and entertainment sectors, and the funds will be used for UPASS’ expansion into CEE and the Middle East, as well as team expansion.
Hybrid
SofiaIcanpreneur, the first Accelerator-as-a-Software, has received an investment of $910k, which it will use to bolster its growth and develop the product. The company’s software system, which is valued at €5 million, helps founders of tech startups start from an initial idea, go through market validation and reach a successful product (product/market fit).
Twisted Technology, founded at the end of 2022, raised $33k. The company is developing a mobile and web platform that connects individuals with verified tech repair shops across the country.
E-commerce = $9.8 million.
In 2023, UK-British diamond company Taylor & Hart raised a total of $4.6 million. The company will use the fresh capital to further develop its blockchain-based gem tracking solution, strengthen its position in the custom order market, and expand internationally.
Bulgaria-based e-commerce company Badu has raised $2.8 million, which it will use for technology development of its online store, including data analytics, dynamic pricing, product recommendations and more. Badu was founded in 2015 and operates in Bulgaria, Greece, Cyprus and Romania, with plans to expand to nine new markets.
NOLD, a technology company for reselling fashion items, raised $1.09 million in funding. The company reduces the fashion industry’s environmental footprint through a platform for reselling sustainable, premium and luxury fashion. The investment raised will be used to further develop the technology and grow the team, with the platform itself expected to launch in the first quarter of 2024.
SaaS automated price and promotions management company Dynamic Pricing has raised $657k. The company’s AI solution helps retailers and brands increase sales and revenue, as well as optimize their pricing policies. Dynamic Pricing will use the investment to expand its team, develop the product and grow its customer base.
Trce Pricing raised $328k to develop the company and its SaaS solution to help online brands and stores analyze the quality of their product pages, track and compare competitors’ products, and get tips to improve content. The product uses a proprietary AI algorithm to detect specific items and their variables.
Ecommerce management platform NEXT BASKET received $219k, which it will use for additional software development. The platform is in the market validation stage of its full functionality and the company is in the process of raising €1m to invest in international expansion.
Nakantara, an online platform for buying and selling movable properties and cars through auctions, raised $109k and Chat Halla, a user behaviour analytics system for online retailers, received an investment of $55k.
Data & Cybersecurity = $8.5 million.
Evrotrust, which offers a remote identity verification and e-signature solution, raised $2.7 million in funding from the Bulgarian Development Bank through the Capital Investment Fund. The investment will help the company strengthen its position in the authentication services sector in Europe, enter new international markets and expand its team by 30%.
The English start-up with Bulgarian roots OutDID raised $2.5 million. The company is developing a solution for identity verification without centralized access, as well as processing and storing personal information. The funds will be used to develop the product and customize it for all sectors that require ID verification.
Tiger Technology received $2.2 million in funding. The startup is developing a data management, workflow and cloud sharing system and will invest the funds to grow the business and develop its Tiger Bridge product, which is used by customers such as NBC Universal, Financial Times, Kodak, HP, Amazon Web Services, IBM, Microsoft and others.
Cybersecurity products company Kikimora.io with subsidiary SoCyber raised $1.09 million. The investment will be used to enhance the vulnerability management solution, attract new IT professionals and marketing activities.
PropTech = $3 million.
Bulgarian-French company Native Spaces received an investment of $2.19 million. The French Riviera space rental platform connects owners of over 1,000 venues with businesses and individuals looking for a venue for their events. The funds will be used for technology upgrades and market expansion for Native Spaces.
Flаtаwаy, a home booking platform for people who travel for business or are digital nomads, attracted $875 thousand in investment. The funds will be invested in expanding the network of property management franchises in CEE and the Middle East, technology enhancements to the platform and development of new features.
Last but not least, Bulgarian real estate technology start-up OfficeRnD, which has clients in 70 countries worldwide, has also attracted a strategic investment. Its size was not announced.
FinTech = $77 thousand.
CashLend, a white-label solution for lending institutions that allows them to raise capital directly from individual investors through a proprietary peer-to-peer lending platform, raised $77k to grow its product.
Health Tech = $27 thousand.
Bulgarian-English digital health company FindMeCure, which is developing the clinical research platforms FindMeCure and TrialHub, made its first startup deal of 2023. The amount was not made clear. The company will use it to solidify its position in the U.S. market as well as expand its technical and sales teams.
Relaxify App, an app to improve productivity and mental health through gamification , received $27k in funding.
Other Tech investments = $5.5 million.
Biotech company Nasekomo was awarded a $2.7 million EU-funded Recovery and Sustainability Plan grant. The company will use it for the first phase of establishing an international network of bioconversion factories.
Plovdiv-based foodtech startup Cupffee, which produces biodegradable and edible cups, attracted a $1.9 million funding round. The company will invest the funds in expanding its business worldwide.
The TouchMenu platform received an investment of $405 thousand. It offers a digital concierge experience for visitors to hotels and ordering, payments and reservations via a mobile device, and the funds will be used to develop additional features and expand into new markets.
Other Bulgarian tech startups that attracted funding in 2023, agriniser – a digital marketplace for grain buyers and sellers, $219k; Pleggi – a recruitment platform using psychometric online profiling games, $55k; Fight Scout – a martial arts app, $55k.; youBhappy – a marketing campaign platform, $55 thousand; PetStay – a pet care platform, $42 thousand; and Diplom.Id – a platform for electronic issuance and verification of educational diplomas and certificates, $38 thousand.
