Silicon Valley of the Balkans? Inside Bulgaria’s Tech Startup Boom
Once known primarily for its history and hiking trails, Bulgaria is now gaining attention for something far more modern: tech innovation. Over the past decade, Sofia has quietly transformed into one of Eastern Europe’s fastest-growing tech hubs — earning the nickname “Silicon Valley of the Balkans.”
From agile startups to global IT outsourcing giants, Bulgaria’s tech scene is thriving — and it’s attracting investment, talent, and attention from far beyond the region.
Sofia’s Strategic Advantage
Sofia, the capital city, has become the epicenter of this boom. With a well-educated, multilingual workforce, a cost of living far lower than in Western Europe, and EU membership benefits, Bulgaria offers a compelling package for tech companies.
The country produces over 5,000 IT and engineering graduates annually, many from top local institutions like Sofia University and the Technical University. “Bulgaria’s tech talent is world-class — and available at a fraction of London or Berlin costs,” says Martin Keller, a German investor who has backed two Sofia-based startups.
From Outsourcing to Innovation
For years, Bulgaria was best known for its role in IT outsourcing — hosting service centers for companies like HP, SAP, and VMware. But recently, the focus has shifted toward building homegrown startups.
This shift is supported by a new generation of Bulgarian entrepreneurs returning from abroad with global experience and local ambition. Startups like Payhawk (corporate expense management), Telerik (developer tools, acquired by Progress Software for $262M), and OfficeRnD (workspace management software) have proven that success stories can start — and scale — from Sofia.
Startup Ecosystem and Government Support
Bulgaria’s startup ecosystem has matured rapidly, helped along by EU-funded programs, early-stage VCs like Eleven Ventures and LAUNCHub, and public initiatives such as the Bulgarian Small and Medium Enterprises Promotion Agency (BSMEPA).
Co-working spaces like Campus X and innovation labs like Sofia Tech Park offer not only infrastructure, but also mentorship, accelerators, and community support.
“The ecosystem is still small compared to Western Europe, but that’s its strength,” says Elena Hristova, founder of a health-tech startup in Plovdiv. “It’s collaborative, open, and hungry.”
Global Reach from the Balkans
The COVID-19 pandemic, and the remote work revolution it triggered, further benefited Bulgaria’s tech scene. With teams now distributed across time zones, being based in Sofia is no longer a limitation.
Payhawk, for example, has expanded into the UK, Germany, and the US, recently achieving unicorn status. Meanwhile, startups like Gtmhub (OKR software) and Dronamics (cargo drones) are gaining traction on global markets.
What’s Next?
Challenges remain — from red tape to brain drain — but the momentum is real. The Bulgarian government is investing in digital skills, 5G infrastructure, and incentives for R&D. EU funds continue to flow into innovation and green tech.
The country may not yet rival Silicon Valley — but it doesn’t need to. Bulgaria is carving out its own space in the global tech map: fast, focused, and full of potential.
As Keller puts it: “In five years, people won’t ask ‘Why Bulgaria?’ — they’ll ask why they didn’t come sooner.”
