![Page / 47 Source:
CEEʼs Software Development legacy is
feeding a new generation of startups,
as tech talents increasingly become
founders.
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Selected startups (co-)founded by former employees of 20+ Software
Development studios, IT outsourcing companies and R&D offices of large
European IT consultancies in CEE.
Selected CEE outsourcing companies & software development studios
Balkans Poland, Hungary,
Czechia & Slovakia
Rest of Europe
Baltics
Ukraine
North America](https://image.slidesharecdn.com/dealroom-googleatomiccredo-cee-20225-240204021106-b3582dc5/85/Central-and-Eastern-European-startups-2022-47-320.jpg)
Central and Eastern European startups 2022
- 1. Third Edition, November 2022 Central and Eastern European startups 2022
- 2. Page / 2 FOREWORD BY Sasha Vidiborskiy Partner at Atomico “Itʼs been a turbulent year for everyone, but nobody has been closer to the epicentre than Ukraine, and more broadly Central and Eastern Europe. Reading the data, it strikes me just how deeply rooted resilience is within our regional DNA. Harnessing this resilience is proving vital to the growth of our technology ecosystem. Despite enormous challenges, technology companies are continuing on a mission of improving the lives of millions. Since its inception is 2006, Atomico has stood firm on an idea that great founders and companies can come from anywhere. Whatʼs becoming obvious, and is starting to be seen through the data, is that CEE has emerged not only as a cradle to great human minds helping others in building products, but also a birthplace of the most innovative and efficient companies. And that those firms are increasingly maintaining a strong presence in the region. Itʼs never been more important to combine ambition with a sustainable approach to growth, so it's no surprise that CEE's approach to company building works. But what excites me is the future potential, as operators in those early success stories re-emerge as founders of the great companies of tomorrow. Itʼs important to share these voices and inspire people to build bolder, faster, and better. We couldnʼt be more excited to take these findings to the world."
- 3. Page / 3 Source: Key takeaways. CEE has shown resilience through uncertain market conditions. CEE has diversified investment into promising new sectors. CEE startups are ranked among the highest in Europe for jobs created per Euro of venture capital invested. The experience in scaling efficiently can be an advantage in aiming to minimize the effects of a market downturn. Combined venture capital investment in CEE has doubled since 2020. The region is on track to break its yearly venture capital investment record and raise €6.2B. CEE has made a name for itself as a pioneering region for Enterprise Software and Gaming companies. As the startup ecosystem matures, CEE is now home to promising startups in many other segments including disruptive technologies such as Web3 and Crypto. 2017 2020 2021 2022 YTD €5.3B Combined venture capital investment into CEE 2.1x 40 30 20 10 CEE DACH Europe Excl CEE Nordics Jobs created by €M raised in venture capital CEE is among the most efficient creators of value in Europe. Dealroom.co Top 5 Industries by venture capital investment, Q1-Q3 2022 Transportation €1.6B | 32% Food Fintech Enterprise Software Security Value Invested % of Total VC Funding €880M | 18% €764M | 15% €337M | 7% €332M | 7% €6.1B €2.5B
- 4. Page / 4 FOREWORD BY You have in your hands the third edition of the Central Eastern Europe (CEE) Report. In last yearʼs report, we saw how the region positioned itself as a solid startup hub, attracting the attention of many local and international investors. This year saw the ecosystem mature and expand its reach by developing and investing in disruptive technologies such as gaming, Web3, and crypto. However, the progress made by CEE founders and investors has been disrupted and challenged by the geopolitical fallout of the invasion of Ukraine. The CEE is a patchwork region of 20+ countries that speak different languages, each with unique political landscapes and complex histories. Each of these countries is also bound together by shared experiences of threats to their livelihoods and their collective fight to gain independence. Weʼve held our breaths watching our Ukrainian neighbors face the same decade-spanning threat once again. The latest edition of the CEE report will shed light on how the tech ecosystem has maintained hopeful resilience during these turbulent times, the investors that did not lose their confidence in the region, the regionʼs strong culture of creating value internally rather than relying on external resources, and the determined CEE founders who stayed focused on innovating their businesses and keeping their employees safe. Having worked alongside CEE founders for the last 10 years, Iʼm humbled by their courage and determination to build global solutions in spite of the dangers they face. This report is a thank you to all the brave CEE founders from our region who do not give up, who believe in their dreams, and are fighting to make them happen. “ Joanna Nagadowska VC and Startups Partnerships at Google for Startups
- 5. Page / 5 Central and Eastern European startups 2022 Ecosystem Overview - Value Creation Pulse check of CEE amid uncertain times. Current & future successes. Rising Stars. CEE startups & investment in context. Resilience. Bootstrapping. Funding. Value creation for entrepreneurs, investors & society. 2. VC activity & exits in CEE The whole picture. Early stage to megarounds. Tallinn to Sofia, via Berlin & San Francisco. 3. Deep dives: Enterprise software, Gaming, Web3 With the support of 4. 1. Spotlight on Ukraine With the support of 5. Co-authors: Table of contents Sasha Vidiborskiy Partner at Atomico Joanna Nagadowska VC Partnerships at Google for Startups Liselore Havermans Head of Research at Dealroom With contributions from: Martin Svoboda Industry Manager at Google Czechia Audrius Janulis Industry Manager at Google Baltics Matěj Micek Associate at Credo Ventures Jakub Krikava Investment Analyst at Credo Ventures Christopher Döbereiner Ecosystem Analyst at Dealroom Maciej Ćwikiewicz CEO at PFR Ventures Skirmantas Januškas Co-Founder & CEO at DappRadar Maciej Gnutek General Partner at Credo Ventures Louis Geoffroy-Terryn Government Research Lead at Dealroom Andrew Wrobel Founding Partner at Emerging Europe
- 6. Page / 6 Source: Dealroom.co. Combined enterprise value by region refers to the sum of the latest disclosed or estimated public and private valuations of companies Headquartered or founded in respective regions. Double counting may occur on a marginal scale. China is excluded from global average in 2022 in order to provide a more accurate picture of the global trend. CEE NORDICS EUROPE AVERAGE 4.0x 3.6x 3.1x CEE is one of the fastest growing regions in Europe by enterprise value. GLOBAL AVERAGE EXCL. CHINA 3.3x $22.8T 2022 $6.9T 2017 $3.4T 2022 $1.1T 2017 $190B 2022 $47B 2017 $468B 2022 $129B 2017 Enterprise value of startups founded since 1990, founded and/or HQʼed in selected regions.
- 7. Page / 7 Source: Dealroom.co. VC activity Investment volume (year-to-date) CEE is one of the fastest growing regions for VC funding in Europe, growing 7.6x since 2017. Growth in VC activity, 2017-2022 (year-to-date) CEE Nordics Europe (excl CEE) DACH 7.6x 3.8x 3.8x 2.9x Europe (excl CEE) DACH region Nordics CEE €84.9B €14.7B €9.0B €5.3B
- 8. 1. Ecosystem Overview - Value Creation
- 9. Page / 9 Source: Combined enterprise value of CEE startups has quadrupled in the last five years, now totalling €190B. Current HQ in CEE Dealroom.co. As part of the CEE ecosystem, Dealroom includes both (1) organizations with current headquarters located in CEE and(2) those founded in CEE that relocated beyond CEE as part of the CEE ecosystem. Combined enterprise value of the CEE tech ecosystem » view online €200B €150B €50B €100B €250B CEE founded, relocated €190B €47B 4.0x €23B €94B 2017 2018 2019 2020 2021 2022 YTD
- 10. Page / 10 Source: Among CEE countries, Croatia, Lithuania & Ukraine have grown fastest since 2017 in combined enterprise value. Ecosystem value, five-year growth (2017-2022) Dealroom.co. Combined enterprise value of companies based in, or founded in, selected countries in Central Eastern Europe in 2017 and 2022. 2017 2022 YTD Value growth #2 Croatia #4 Bulgaria #6 Hungary #5 Romania #1 Lithuania #3 Ukraine €0.6B €0.3B €2.5B €0.6B €1.2B €1.4B 2017 2022 YTD Value growth #8 Poland Rest of CEE Belarus #7 Czechia #9 Estonia €4.7B €4.8B €7.6B €8.1B €10.0B €23.3B €36.3B €20.4B €7.8B €30.2B €36.8B €6.9B €11.4B €11.8B €2.6B €7.7B 16.6x 15.7x 8.0x 6.8x 9.3x 5.4x 3.0x 2.6x 3.2x 3.1x 4.4x
- 11. Page / 11 Source: “Weʼre preparing for different scenarios to both be ready to accelerate and deal with potential global slowdown. We used to have a pure growth mindset, now itʼs changed to cost-efficient growth.” Adam Górniak Chief Revenue Officer at Booksy “Weʼve focused our efforts on the critical path across the board, and put more emphasis on efficiency of the business over short-to-mid-term, setting the right foundation to optimize for the long run when the uncertainty level curtails." Josip Cesic CTO & Co-founder at Gideon “The mindset of growing at all costs has changed, and companies have become more conservative when it comes to financial planning. For businesses operating in the CEE region, strong capitalizing combined with a diverse and global client portfolio are an advantage in the current macroeconomic environment." Kaarel Kotkas CEO and Founder at Veriff Read the full interview “We did not make significant adjustments to the current state of affairs. If the rate of change of company operations due to growth is massively larger than the rate of change of macro; if you have great margins, great NDR, low burn and are operating world-wide, the macro doesn't matter that much.” Juraj Masar Co-founder & CEO at Betterstack Read the full interview Read the full interview Read the full interview Startups in CEE are bracing for uncertain times.
- 12. Page / 12 Source: 2021 and 2022 have been the strongest years for unicorn creation in CEE, with the number of unicorns more than doubling since December 2020. Cumulative number of CEE Unicorns » view online 2015 2016 2017 2018 2019 2020 2021 2022 20 40 44+ 36 21 17 15 11 9 6 8 new Unicorns in CEE, year-to-date » view online AirSlate Founded: Ukraine Industry: SaaS/Legal Rimac Automobili Founded: Croatia Industry: Transportation Nord Security Founded: Lithuania Industry: Security Glia Founded: Estonia Industry: Marketing Payhawk Founded: Bulgaria Industry: Fintech Productboard Founded: Czechia Industry: Enterprise Software Veriff Founded: Estonia Industry: Fintech Unstoppable Domains Founded: Ukraine Industry: Hosting/Web3
- 13. Page / 13 Source: Dealroom.co SofiaBULGARIA RigaLATVIA Unicorns are being created across the region, even outside of major metropolitan areas. Startups-turned-Unicorns in the past 18 months. New CEE unicorn cities in 2022. New unicorns in existing CEE unicorn cities. Existing CEE unicorn cities. ▊ CEE countries with 1+ unicorn. ▊ CEE countries with no unicorn. NEW UNICORN CITY (2022) NEW UNICORN CITY (2022)
- 14. Page / 14 Source: Dealroom.co. Startups verified by Dealroom and currently based or founded in each country are counted. Selected startups shown for each country. Riga LATVIA Nr. of Startups: 600+ Enterprise Value: €2.6B VC Activity 2022: €48M VC Activity Growth: 2.0x Vilnius LITHUANIA Nr. of Startups: 1.1k+ Enterprise Value: €10B VC Activity 2022: €245M VC Activity Growth: 8.6x Sofia BULGARIA Nr. of Startups: 800+ Enterprise Value: €4.8B VC Activity 2022: €181M VC Activity Growth: 22.3x Bosnia & Herzegovina Nr. of Startups: 70+ Belgrade SERBIA Nr. of Startups: 400+ Enterprise Value: €1.1B VC Activity 2022: €44M VC Activity Growth: 16.9x Ljubljana SLOVENIA Nr. of Startups: 600+ Enterprise Value: €2.1B VC Activity 2022: €71M VC Activity Growth: 8.6x Emerging hubs are becoming more relevant in the region.
- 15. Page / 15 Source: Exited Private €1B+ Future unicorns €200M-1B Estonia Poland Romania Hungary Czechia Ukraine Bulgaria Latvia Lithuania Belarus Croatia Rest of CEE CEE is home to many of Europeʼs most renowned unicorns and tech success stories. Dealroom.co. Green outlines represent startups which have transitioned forward between categories since 2021. Grey outlines represent closed startups. Estonia Poland Romania Hungary Czechia Ukraine Bulgaria Latvia Lithuania Belarus Croatia Rest of CEE This list features startups across all industry verticals. Web3 and Gaming companies are the focus of the industry deep dives in chapter 4, further down the report.
- 16. Page / 16 Source: Dealroom.co. Startups in Gaming and Web 3.0 segments have been excluded from this list and highlighted in distinct parts of the report. The region has a strong pipeline of rising stars ready to write its future. Rising Stars <€200M Estonia Poland Romania Hungary Czechia Ukraine Bulgaria Latvia Lithuania Belarus Croatia Rest of CEE This list features startups across all industry verticals. Web3 and Gaming companies are the focus of the industry deep dives in chapter 4, further down the report.
- 17. Page / 17 Source: Nordics CEE Founded Enterprise Value: €1B CEE-founded, relocated 5 Year Funding: €0.3B United Kingdom CEE Founded Enterprise Value: €17B CEE-founded, relocated 5 Year Funding: €1.7B West Coast CEE Founded Enterprise Value: €15B CEE-founded, relocated 5 Year Funding: €2.5B East Coast CEE Founded Enterprise Value: €15B CEE-founded, relocated 5 Year Funding: €2.5B Germany CEE Founded Enterprise Value: €0.5B CEE-founded, relocated 5 Year Funding: €0.1B The Netherlands CEE Founded Enterprise Value: €0.3B CEE-founded, relocated 5 Year Funding: €0.2B 200+ CEE-born, relocated funded startups 17% of CEE startups with €1M+ in funding have moved abroad. Top destinations include the US West and East coasts, and London.
- 18. Page / 18 Source: Although many successful CEE startups move their HQ abroad, they tend to keep a strong presence in the region. Dealroom.co. Analysis based on most valuable companies which relocated HQ outside of CEE. Share of the workforce based in Central Eastern Europe. <25% 50% 100% Selected CEE-born startups which relocated their registered address abroad.
- 19. Page / 19 Source: Dealroom.co Distribution of combined enterprise value, Oct/2022 for CEE startups by place of incorporation Startups relocate as they scale. CEE startups are far more likely to do so than European average, although the picture differs by country. CEE-based CEE born, relocated Enterprise value of CEE startups by place of incorporation 89% Based in Europe Belarus €0.3B Ukraine €22.4B €0.9B Bulgaria Slovenia €1.4B €0.7B Hungary €21.6B €13.2B Latvia Estonia Slovakia Croatia Serbia €30.7B Czechia €3.2B €27.0B Lithuania 76% 96% 68% 64% 63% 60% 45% 34% 30% 11% 8% 7% Share of ecosystem value startups abroad. CEE born, HQ in CEE CEE born, HQ relocated Enterprise value of European startups by place of incorporation Europe-born, Europe based Europe born, HQ relocated HQ in CEE 54% HQ Relocated outside of CEE 46% HQ in Europe 89% Poland €20.6B €3.9B €1.2B €4.9B €2.7B €1.7B €1.0B €14.7B €13.2B €0.5B €0.7B €13.2B €1.6B €3.1B €13.2B €0.3B €0.8B €0.8B €9.2B €34.3B €2.5B 99% Romania 35% €8.5B €2.9B HQ Relocated outside of Europe 11%
- 20. 2. CEE startups & investment in context.
- 21. Page / 21 Source: “Weʼre doing what always needs to be done in times of uncertainty: be smart about what you invest in and realize that innovation is essential, even more than usual. Especially during difficult times, there are opportunities that can boost your growth and redefine how you operate." Michał Borkowski Co-Founder and CEO at Brainly “Behind every successful company is a happy workforce, which is why we focus more on operational efficiency and employee health. We show resilience and kindness, and inspire our team to work together towards our goals that way we can move forward, not backward." Petr Antropov CRO and Co-founder at Lokalise “Although in the short-term there are valid reasons to be cautiously conservative, in the long-term we are optimistic and confident. Currently, weʼre being more margin and profit driven in our approach, while at the same time increasing our innovation efforts. This is the time to build with the emphasis on innovation." Anton Gauffin Co-CEO & Executive Director at Huuuge Games Read the full interview “E-learning adoption was already experiencing hyper growth and global lockdowns have accelerated it. The number of people using the Preply app has grown 4x over the last 2 years, and in many regions overall users have almost doubled year on year. The online language learning market is set to reach $47B by 2025 and Preply is well-positioned to take advantage of this opportunity.” Kirill Bigai & Dmytro Voloshyn Co-founders at Preply Read the full interview Read the full interview Read the full interview Resilience is deeply rooted in CEEʼs entrepreneurial mentality.
- 22. Page / 22 Source: Dealroom.co. Bootstrapped is defined as not receiving publicly-disclosed external funding. Grants are not included in funding. CEE With an active domestic early-stage investment industry, CEE startups get VC backing at the same rate as all of Europe, with 23% of startups venture backed. Active startups funding status, 2022 Bootstrapped startups VC-backed startups 3.6k VC-backed startups 23% 39.1k VC-backed startups 23% 15.7k Bootstrapped startups 77% 170.9k Bootstrapped startups 77% Europe
- 23. Page / 23 Source: Dealroom.co 12 months 18 months 24 months 30 months 36 months Rest of Europe Conversion CEE Conversion 9% Conversion to Series A by time elapsed since Seed round Seed is the 1st round between $1-4M; Series A is the 1st round between $4-15M When they are backed, CEE startups successfully graduate from Seed to Series A at a similar pace and rate compared to the rest of Europe. 16% 21% 25% 29% 30% 21% 8% 15% 26%
- 24. Page / 24 Source: Bootstrapping plays a prominent role in CEEʼs late-stage successes: almost a quarter of unicorns born in CEE are not VC-backed. Bootstrapped unicorns » view online CEE 22% 7% Europe Average Western Europe 5% Dealroom.co. *Edge cases excluded from the bootstrapping analysis. VC-backed (30) Bootstrapped (10) 2022 Unicorns Almost bootstrapped (5)*
- 25. Page / 25 Source: VC activity in CEE has already surpassed every year prior to 2021. At the current rate, 2022 is on track to match the levels of last year as well. Dealroom.co. Annualized VC funding value based on performance up to October/2022. €8B €6B €2B €4B 2017 2018 2019 2020 2021 2022 Combined venture capital investment into CEE » view online Investment into startups founded in CEE with current HQ abroad Investment into startups with HQ in CEE Annualized €6.2B* €6.1B €2.5B €1.3B €5.3B €3.6B 2.1x
- 26. Page / 26 Source: Lithuania €236M VC funding value by country, year-to-date 2022 Dealroom.co Countries with €500M+ VC funding in 2022 Estonia €1.4B Czechia Croatia Poland Romania Bulgaria Ukraine Hungary Slovakia Latvia Slovenia Serbia North Macedonia Belarus Moldova Albania Kosovo Montenegro Bosnia & Herzegovina €1.1B €865M €550M €304M €245M €246M €132M €117M €50M €71M €44M €10M <€5M <€5M <€5M <€5M <€5M <€5M In CEE, 4 countries hold over 70% of total VC funding so far in 2022.
- 27. Page / 27 Source: Europe Average funding per startup is decreasing globally, but is increasing in CEE. Average funding per startup, 2017-2022 Average funding (combined 5-year activity), startups founded and/or HQʼed in selected geographies. Dealroom.co. CEE Global €800k €600k €200k €400k 2017 2018 2019 2020 2021 2022 (Q3) CEE: €260k Europe: €470k Global: €440k
- 28. Page / 28 Source: Dealroom.co. CEE has shown resilience through 2022 so far, especially in early-stage investment. Seed and Series A average round sizes continue to increase. Seed Avg. Round Size 2017 2022 €0.25M €0.5M €0.75M €1.0M €1.25M 2018 2019 2020 2021 Startup Stage Scaling Stage Megarounds Series B Avg. Round Size 2017 2022 €10M €20M €30M €40M €50M 2018 2019 2020 2021 Series A Avg. Round Size 2017 2022 €2.5M €5.0M €7.5M €10.0M €12.5M 2018 2019 2020 2021 Series C Avg. Round Size 2017 2022 €20M €40M €60M €80M 2018 2019 2020 2021 Series D+ Avg. Round Size 2017 2022 €20M €40M €60M €80M 2018 2019 2020 2021 # of Rounds since 2017: 350+ # of Rounds since 2017: 120+ # of Rounds since 2017: 50+ # of Rounds since 2017: 40+ # of Rounds since 2017: 30+
- 29. Page / 29 Source: VC funding is a powerful job creation engine in CEE, and leads to far more job creation in CEE than elsewhere on the continent. Jobs created per M€ raised combined funding 2015-2022, Jobs created as of H1 2022 100 50 U k r a i n e B e l a r u s S l o v e n i a S e r b i a R o m a n i a S l o v a k i a H u n g a r y P o l a n d B u l g a r i a C z e c h i a C r o a t i a E s t o n i a L a t v i a L i t h u a n i a Rest of Europe CEE countries Dealroom.co. Includes CEE countries with 100+ funded startup and known global job creation, as of H1 2022. Startups based in CEE as well as startups relocated abroad are included.
- 30. 3. VC activity & exits in CEE.
- 31. Page / 31 Source: Rounds $100M and above account for 52% of the volume invested in CEE, year to date. Dealroom.co. *Funding rounds over €100M are considered megarounds. Data captured until October/2022. VC investment in CEE founded startups by round size » view online 20% 2016 2018 2020 40% 60% 100% 2014 2012 80% ▊ €0M-€1M (pre-seed) ▊ €1M-€4M (seed) ▊ €4M-€15M (series A) ▊ €15M-€40M (series B) ▊ €40–€100M (series C) ▊ €100–€250M ▊ €250M+ 2010 2022 YTD Selected Top VC-Funding Rounds in CEE, 2022 Bolt Founded: Estonia Round: €628M Series F Rimac Automobili Founded: Croatia Round: €500M Series D Rohlik Founded: Czechia Round: €231M Series D Ataccama Founded: Czechia Round: €150M Series F Green Group Founded: Romania Round: €127M Growth Equity VC Rimac Automobili Founded: Croatia Round: €120M Growth Equity VC Productboard Founded: Czechia Round: €125M Series D Veriff Founded: Estonia Round: €100M Series C Nord Security Founded: Lithuania Round: €100M Late VC
- 32. Page / 32 Source: Megarounds are shaping the funding landscape in CEE, albeit to varying degrees across countries. Share of megaround in national funding landscapes in funding volume, 2017-2022H1 80% 55% 50% 43% 38% 40% 32% 5% Romania Estonia Lithuania Czechia Bulgaria Ukraine Latvia Poland Dealroom.co. Megarounds = rounds above €100M. *estimated transaction values. Top CEE megarounds in the last 5 years » view online Estonia Romania Czechia Lithuania Ukraine Bulgaria Latvia Poland €2.6B €2.3B €758M €678M €432M €130M €125M* €1.0B 48% CEE Average
- 33. Page / 33 Source: Megarounds aside, Poland and Estonia see the bulk of VC funding in CEE. €2.3B €2.1B €1.3B €730M+ €680M+ €640M+ €550M+ €520M+ €275M+ VC funding by country, excluding megarounds 2017-2022 Poland Estonia Czechia Lithuania Hungary Bulgaria Croatia Romania Latvia 52% of CEEʼs VC funding, cumulative 2017-2022, excl. megarounds, is concentrated in Poland, Estonia & Czechia Dealroom.co. Megarounds = rounds above €100M.
- 34. Page / 34 Source: Source: Dealroom.co. Data updated in Oct/2022. International investors have increased their activity in CEE startup funding. Investment into CEE-born companies by investor origin » view online €2.0B €4.0B €6.0B ▊ Domestic ▊ European ▊ US ▊ Asia ▊ Rest of World ▊ Undisclosed HQ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (year-to-date)
- 35. Page / 35 Source: STARTUP DATE LOCATION ROUND INVESTORS Katana Oct/2022 Estonia €35 Series B Kevin. May/2022 Lithuania €65M Series A Ready Player Me Aug/2022 Estonia €56M Series B Resistant.AI Oct/2021 Czechia €17 Series A Seon Apr/2022 Hungary €87M Series B Silent Eight Mar/2022 Poland €40M Series B Tidio May/2022 Poland €25 Series B Selected top rounds with foreign investor participation in CEE. Source: Dealroom.co. Rounds announced in the past 12 months (October 2021-October 2022). sorted alphabetically.
- 36. Page / 36 Source: 2022 is set to match the record breaking 2021 volume of early-stage VC funding in Central and Eastern Europe. Early-stage venture capital investment into CEE founded companies » view online Dealroom.co. *Especially at early stages, there is systemic underreporting in the last 12 months. Early stage rounds considered those under €40M. Early-stage VC funding rounds in 2022 » view online €1.0B €2.0B €1.8B €2.2B 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (year-to-date)
- 37. Page / 37 Source: Seed investments are crucial for the Polish ecosystem, as we need to sow first, to be able to harvest. For years, our young entrepreneurs were lacking capital. Since its inception, PFR Venturesʼ mission has been not to just boost funding, but also to change the mindset. Since 2019, we have been experiencing a major mindset change among young people. They know that they can rely on dozens of early-stage VC teams constantly looking for new start-ups. Itʼs no longer a foolʼs dream to raise a pre-seed round for just an idea in a PowerPoint deck. “ Maciej Ćwikiewicz CEO at PFR Ventures 100+ Polish startups which raised early stage rounds in 2022 » view online poland.dealroom.co Discover the Polish startup ecosystem
- 38. Page / 38 Source: Dealroom.co. *There may occur overlap between industries. **Bolt has been excluded from Food industry. ***Percentage and value of funding based on averages from 2015-2021. Transportation, Fintech & Enterprise Software lead VC investments into CEE. Top 5 Industries in CEE by VC funding Q1-Q3 2022 » view online Transportation €1.6B | 32% Food Fintech Enterprise Software Security Value Invested % of Total VC Funding €880M | 18% €764M | 15% €337M | 7% €332M | 7% Biggest Industries 2015-2021 by VC funding average Enterprise Software Food Fintech Transportation Marketing €1.3B | 33% €440M | 11% €400M | 10% €360M | 9% €240M | 6% Value Invested % of Total VC Funding***
- 39. Page / 39 Source: The record in VC funding raised has already been broken. New funds are born and old funds are raising new funding. Dealroom.co. *2022YTD based on H1 performance. Venture capital funds are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential New VC funds raised by CEE-based investors » view online Number of CEE-based funds announced » view online €200M €400M €600M €800M 2017 2018 2019 2020 2021 2022 YTD 10 20 30 2017 2018 2019 2020 2021 2022 YTD €923M+ €550M €350M €360M €820M 20 31
- 40. Page / 40 Source: Credo Stage IV €75M Prague CZECHIA CEE-based €50M+ funds announced this year. Inovo Ventures Fund III €100M* Warsaw POLAND Eleven Ventures Fund III €60M Sofia BULGARIA Dealroom.co. * reported values as of 10.2022. Debt Fund I €55M Zagreb CROATIA Catalyst Romania Fund II €50M Bucharest ROMANIA Superangel Fund II €50M Tallinn ESTONIA 19 New funds announced across CEE, year-to-date. 990 foreign investors with investments in CEE Market One Capital Fund II €80M* Warsaw POLAND Contrarian Ventures Fund II €100M Vilnius LITHUANIA Trind VC Fund II €55M Tallinn ESTONIA At a glance SPOTLIGHT ON UKRAINE Blue & Yellow Heritage €30M* HCGF IV €125M EIC Ukraine program €20M SCV Technology Fund III €70M* Belgrade SERBIA
- 41. Page / 41 Source: Dealroom.co. *Last 12 months are systematically under reported and may cause lag in values. Confidential exits do not contribute to complete values. Exits are at one of their highest points in CEEʼs history, but it remains unclear how amounts will be affected by this yearʼs market downturn. Number of exits in CEE » view online H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 100 50 83 80 74 69 34 34 44 91 110 118 88* Exit amounts in CEE » view online H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 €40B €30B €20B €10B €630M* €37.2B €42.3B €14.8B €496M €5.3B €822M €5.4B €4.5B €2.7B €1.9B H1 2022 88% of exits have undisclosed values year-to-date.
- 42. Skirmantas Januškas Co-Founder & CEO at DappRadar 4. Deep dives: Enterprise software, Gaming, Web3 With the support of Mariusz Gasiewski CEE Mobile Gaming Lead at Google Maciej Gnutek General Partner at Credo Ventures Web3 Gaming Enterprise software Has contributed on
- 43. Page / 43 Source: Dealroom.co. *There may occur overlap between industries. eCommerce contains Fashion, Home Living & Wellness segments. More on industry definitions can be found here. CEE Enterprise Software startups have a combined valuation exceeding all of their Fintech, Transportation and eCommerce counterparts combined. Top 5 Industries in CEE by combined enterprise value, October 2022 Enterprise Software €80B eCommerce Fintech Transportation Security €30B €19B €19B €15B
- 44. Page / 44 Source: The funding landscape in CEE looks different compared to European average, with Enterprise Software taking up a significantly larger chunk of VC activity in the region. Dealroom.co. *Startups may belong to up to two industries. Overlaps and double counting is reduced organically but may occur at scale. 10% 20% 30% 40% Enterprise software Transportation Fintech Security Health Energy 38% 22% 19% 5% 4% 3% 23% 8% 25% 19% 9% 5% % of B2B VC funding by sector (2016- Q3/2022) ▉ Rest of Europe ▉ CEE
- 45. Page / 45 Source: CEE is home to some of the most promising Enterprise Software startups. Dealroom.co Legal & Accounting Data Management Development Tools Other Security Team Productivity Marketing & Sales Top Rounds 2022 Rising Stars - Identified with
- 46. Page / 46 Source: Source: Dealroom.co Funding into CEE Enterprise Software startups is down on a record-breaking 2021, but is still 2.5x compared to 5 years ago. Select CEE-founded Enterprise Software Funding Rounds of 2022 CEE Enterprise Software VC Funding » view online MANTA Central hub for data flows. Round: €35M Series B H1 2017 H1 2021 H1 2022 €1.0B €500M €662M €919M €264M 2.5x €1.5B €1.1B H2 2021 Synerise AI behavioural data processing. Round: €23M Series B Memsource Automating content translation. Round: €15M Growth Equity VC DRUID Intelligent chat bot. Round: €14.2M Series A
- 47. Page / 47 Source: CEEʼs Software Development legacy is feeding a new generation of startups, as tech talents increasingly become founders. [] Selected startups (co-)founded by former employees of 20+ Software Development studios, IT outsourcing companies and R&D offices of large European IT consultancies in CEE. Selected CEE outsourcing companies & software development studios Balkans Poland, Hungary, Czechia & Slovakia Rest of Europe Baltics Ukraine North America
- 48. Page / 48 Source: 100% 75% 25% 50% CEEʼs Enterprise Software expertise is increasingly supporting innovation in other segments. Dealroom.co. *There may occur overlap between industries. Share of VC funding in CEE by industry 2017 2022 (Q1-Q3) ▊ Semiconductors ▊ Health ▊ Gaming ▊ Marketing ▊ Travel ▊ Energy ▊ Security ▊ Food ▊ Enterprise Software ▊ Fintech ▊ Transportation 36% of CEE VC funding 16% of CEE VC funding Transportation, Mobility & Logistics Fintech Enterprise software Cybersecurity
- 49. Page / 49 Source: Source: Dealroom.co VC funding has grown 5.6x since 2021 for CEE-based Crypto and Web3 startups. Selected Crypto & Web 3.0 CEE VC Funding Rounds, 2022 CEE-based Crypto/Web 3.0 Startups - VC Funding » view online H1 2017 H1 2021 H1 2022 H2 2021 NOW €100M €50M €150M €119M €101M €3M 5.6x Ready Player Me Founded: Estonia Round: €56M Series B BITLEVEX Founded: Estonia Round: €50M Early VC Tenderly Founded: Serbia Round: €40M Series B €21M Tatum Founded: Czechia Round: €41M Early VC Elrond Founded: Romania Round: €40M Early VC NFTPort Founded: Estonia Round: €24.9M Series A Aleph Zero Founded: Poland Round: €14.8M Seed
- 50. Page / 50 Source: Web3 startups to watch out for in Central Eastern Europe. Dealroom.co Selected CEE Web 3.0 startups, using Top CEE Web3 startups to watch out for » view online Tenderly Founded: Serbia Ethereum developer platform for innovative blockchain products. Striga Founded: Estonia Crypto and Banking APIs 3Commas Founded: Estonia Crypto trading platform. DappRadar Founded: Lithuania Decentralized crypto app store. Revuto Founded: Croatia Subscription management with crypto micro-lending and borrowing. Aurora Labs Founded: Ukraine Solution to operate apps on Ethereum-based platform. RMRK Founded: Croatia NFT exchange platform. Single.Earth Founded: Estonia Builds tools to mitigate climate change and biodiversity loss. Change Invest Founded: Estonia Crypto exchange platform. Ramp Founded: Poland Banking APIs to connect crypto with fiat. Coinrule Founded: Romania Automated crypto trading platform Somnium Space Founded: Czechia Social & open world VR platform. Wert Founded: Estonia Crypto currency provider. NFTPort Founded: Estonia NFT infrastructure & API tool for developers. Nexo Founded: Bulgaria Crypto-backed loans.
- 51. Page / 51 Source: Estonia, Slovenia & Serbia concentrate over 70% of combined value of Web3 startups in CEE. Top 5 Web 3.0 hubs in CEE by Enterprise Value » view online Dealroom.co. Combined enterprise value of 585 startups identified on the basis of their product and location of their main center of business. Countries >€100M in combined crypto enterprise value Countries with less than <€100M in combined crypto enterprise value Estonia €1.3B Slovenia Serbia Romania Poland €427M €289M €253M €158M Web3/Crypto now accounts for over 20% of the ecosystem value in Slovenia & Serbia.
- 52. Page / 52 Source: Gaming startups to watch out for in Central Eastern Europe. Dealroom.co Top CEE gaming startups by Dealroom Signal 550+ gaming startups to watch out for » view online Huuuge Founded: Poland InSTREAMLY Founded: Poland Jarvi Games Founded: Ukraine Whimsy Software Founded: Ukraine RedDeer Games Founded: Poland Tips.GG Founded: Ukraine Originalgames Founded: Estonia Gotiva Games Founded: Bosnia & Herzegovina Kool2Play Founded: Poland BeardedBrothers Games Founded: Poland Firebyte Games Founded: Romania Farom Studio Founded: Ukraine
- 53. Page / 53 Source: With over €2B in exits since 2020, CEE has created a streak in Gaming. Combined CEE Gaming Exit Values » view online Biggest CEE Gaming Exits since 2020 Huuuge Exit round: €445M IPO 2021 Nordeus Exit Round: €378M Acquisition 2021 1990-2019 2020+ €1.3B €2.3B Coolbet Exit round: €176M Acquisition 2021 Nanobit Exit Round: €148M Acquisition 2020 Flying Wild Hog Exit Round: €137M Acquisition 2021 Melsoft Exit Round: €100M Acquisition 2020 Dealroom.co Casaulino Exit Round: €46M Acquisition 2022 People Can Fly Exit Round: €43M IPO 2020
- 54. Page / 54 Source: Web3 and Gaming startups are mutually-reinforcing in CEE, leveraging renowned expertise of the region. Dealroom.co Gaming Crypto & Web 3.0 CEE Gaming Landscape » view online CEE Web3 Landscape » view online
- 55. Page / 55 Source: “Just three months after founding DappRadar, the whole crypto industry witnessed a steep decline. Since then, we've been building with the mindset that the next downturn may be around the corner. While we've looked for cost savings, our growth plans - including expansion of our DAO - haven't changed at all. My advice to the crypto community is to do the same. Keep a firm eye on your costs, but stick to your plans to ensure you emerge stronger from the current market.” CEE Gaming & Web3 startups are aiming for efficiency to deal with challenging times. Cash is king in hard times. Thatʼs why weʼre focused on short-term performance. Weʼre fortunate to have a strong financial profile and good profitability, which is the basis for the company's long-term development.” “ Once people struggle with paying basic bills, they will cut their spending on entertainment. At Pixel Federation, we try to keep our costs low and do our best. In the gaming business, long term plans were always bullsh*t, and in this uncertainty they are even bigger bullsh*t.” “ Read the full interview Maciej Zużałek CEO at Ten Square Games Marian Fridrich CEO at Pixel Federation Skirmantas Januškas Co-Founder and CEO at DappRadar Read the full interview Read the full interview
- 56. 5. Spotlight on Ukraine Andrew Wrobel Founding Partner at Emerging Europe With the support of Evgeny Galkin Industry Head At Google Ukraine
- 57. Page / 57 Source: Ukraine is a breeding ground for successful startups. Dealroom.co SPOTLIGHT ON UKRAINE Rallyware BetterMe Revenue Grid BitFury Restream AirSlate Reface DMarket GitLab MacPaw Readdle Preply Grammarly People.ai Aurora Labs Selected Ukrainian startups & Unicorns >> Open access to the Ukrainian Startup Ecosystem Jooble Supported by
- 58. Page / 58 Source: Ukrainian startups are showing incredible resilience in spite of the war and recession, with enterprise value growing 3.3x since 2020. Dealroom.co SPOTLIGHT ON UKRAINE Total combined enterprise value of Ukrainian Startups » view online Total combined enterprise value of CEE » view online 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 10 20 30 €190B €242B €148B €93B €65B €49B €250B €200B €150B €100B €50B €23.3B €27.1B €7.0B 3.3x €6.4B €4.5B €2.9B 1.3x
- 59. Page / 59 Source: This can take a toll on startup teams. “At the moment Russia invaded, one third of the team was in Kyiv, roughly 150 people. Other than the co-founders, none of the leadership team are Ukrainian and they really did their best to manage the business and evacuation process. We organized a team of 10 people working 24/7 to make sure every single Prepler in UA had everything they needed during those weeks, from transportation to accommodation in the west of Ukraine or outside. We also provided financial, and mental health support.” Startups have had to cope with uncertain times. “We extended deadlines for projects we planned to launch in 2022, but we haven't abandoned them. After all, the team lost the ability to work effectively for a few months, and it's impossible to work on the same level of productivity when constantly thinking and living through what's happening to our people and our country (Ukraine).” SPOTLIGHT ON UKRAINE Read the full interview Oleksandr Kosovan Founder and CEO of MacPaw Kirill Bigai & Dmytro Voloshyn Co-founders at Preply Read the full interview
- 60. Page / 60 Source: Ukraine is home to 285 000+ IT professionals(1) , over 2,000 startups and hundreds of service providers and software development studios. The Ukrainian startup ecosystem has shown incredible resilience and continues to provide livelihoods to Ukrainians at home and abroad, as well as innovations to the world. (1) Source: IT Ukraine Association. (2) Source: ukraine.dealroom.co. 500+ foreign startups with recent job openings in Ukraine Ukraine is home to a dense startup & tech ecosystem: there are 1.5k active startups based in the country(2) . Another 600+ startups were founded in Ukraine, or by Ukraine-based founding teams and/or by alumnus of Ukrainian universities. Ukraineʼs tech ecosystem is more than the sum of its startups. SPOTLIGHT ON UKRAINE Foreign startups with ties to Ukraine. View online Companies founded in Ukraine with current HQ abroad Companies (co-)founded by alumni of Ukrainian universities Companies founded by Ukraine-based founding teams Foreign startups & tech companies actively recruiting in Ukraine this year. View online 600+ startups abroad with strong ties to Ukraine 1.5K Ukrainian startups main center of business in Ukraine
- 61. Page / 61 Source: Magdalena Przelaskowska Senior Startup Partner Manager at Google for Startups talent and are bootstrapped with most reaching break-even. All this with limited access to capital, so founders try to minimize costs where possible. In the report we can see that Ukraine is number 1 country when it comes to jobs creation per $M raised. In the challenging times that are ahead of us, this mindset of Ukrainian founders gives them a natural advantage and will help them survive with hopes to grow further and rebuild their country's economy after the war." When the war started, we opened our Google for Startups Campus doors to Ukrainian founders who arrived in Warsaw. The one strong feedback we got was that, on top of funds, they need visibility to show the world that Ukraine is still standing. This strong resilience shows in the numbers that we can see throughout this report. For the Ukraine Support Fund, we have interviewed hundreds of Ukrainian founders. From that experience I can share that many startups from that region build sophisticated tech products, have strong teams with tech To help Ukrainian entrepreneurs maintain and grow their businesses, strengthen their community and build a foundation for post-war economic recovery, Google announced in March a $5 million Google for Startups Ukraine Support Fund. Selected Ukraine-based startups will receive up to $100,000 in non-dilutive funding as well as ongoing Google mentorship, product support, and Cloud credits. So far 33 startups were selected, with more to be announced before the end of year. Ukraine Support Fund SPOTLIGHT ON UKRAINE | “
- 62. 6. Methodology & Acknowledgements
- 63. Page / 63 Source: A few words on our methodology. Homegrown and relocation What is a startup? Companies designed to grow fast. Generally, such companies are VC-investable businesses. Sometimes they can become very big (e.g. $1B+ valuation). When startups are successful, they develop into scaleups (>50 people), grownups (>500 people) and result in big companies. Only companies founded since 1990 are included in this report. What is a unicorn? Unicorns are (former) startups that reached US$ 1B valuation or exit at one point in time. What is a startup? Geographic scope In this report, the countries considered as part of CEE include: Estonia, Lithuania, Latvia, Poland, Czech Republic, Hungary, Slovakia, Croatia, Romania, Serbia, Bulgaria, Montenegro, Slovenia, North Macedonia, Bosnia and Herzegovina, Albania, Kosovo, Moldova, Ukraine, Belarus. While many startups founded in CEE relocate beyond the borders of CEE, most maintain business-critical ties to their homelands. In order to take this reality into account, this report includes both CEE-based startups, which maintain their main center of business (HQ) in their country of origin, and CEE-born startups, relocated outside of CEE as they grew. Startups founded by alumni of CEE Universities, and/or nationals of CEE countries whilst abroad, as well as startup funded by CEE investors abroad, are not included in the main section of this report. CEE startups on Dealroom What is a Unicorn? Underlying Data Dealroomʼs proprietary database and software aggregate data from multiple sources: harvesting public information, user-submitted data verified by Dealroom, data engineering. All data is verified and curated with an extensive manual process. The data on which this report builds is available via app.dealroom.co. For more info please visit dealroom.co or contact [email protected]. Venture Capital, Investors Domestic investors refer to each respective SEE countries. Europe investors include all SEE and CEE investments except those from the companyʼs founding or HQ location. Europe includes the entire European continent, the UK and Russia, but excludes Turkey. Investment are referred to by their round labels such as Seed, Series A, B, C, … late stage, and growth equity. VC investments exclude debt, non-equity funding, lending capital and grants.
- 64. Previous editions of the report. Page / 64 1st Edition 2019 2nd Edition 2021 3rd Edition 2022
- 65. Page / 65 Source: Global startup & venture capital intelligence platform Dealroom.co is the foremost data provider on startup, early-stage and growth company ecosystems in Europe and around the globe. Founded in Amsterdam in 2013, we now work with many of the world's most prominent investors, entrepreneurs and government organizations to provide transparency, analysis and insights on venture capital activity. Credo Ventures is a venture capital company focused on early stage investments in Central Europe. Our mission is to identify and back the most interesting early stage companies in the region, support them in their growth plans in global markets and help to achieve their objectives. Built by founders for founders, every single aspect of our firm, every part of our culture and every decision we take is designed with the sole ambition of helping our partners succeed. Because itʼs through these pioneers that change happens. Rewiring our world to be a fundamentally better place. One entrepreneur at a time. At their best, startups solve complex problems. When they succeed, they move us all forward. Thatʼs why Google for Startups brings the best of Googleʼs products, connections, and best practices to level the playing field for startup founders and communities, and enable startups to build something better. We partner with outstanding technology founders from CEE to help them realize their global ambitions. We partner with Europeʼs most ambitious tech founders. Googleʼs initiative to help startups thrive across every corner of the world.