Bulgaria: The rising star in Europe's IT and software industry A look at the growing potential of an often overlooked European gem
Examples of innovations - Made in Bulgaria
Selection of leading SW and IT start-ups
The road ahead
Summary
Sofia, Bulgaria – In recent years, Bulgaria has quietly but steadily established itself as an emerging hotspot in the European IT and software landscape. With a combination of talent, low operating costs and growing government support, Bulgaria is now in the spotlight as an economic location worth paying attention to
A valuable talent pool that is growing and thriving
The IT and software industry in Bulgaria is characterised by an impressively skilled labour pool. With one of the highest rates of IT graduates per capita in Europe, the country offers a rich source of young, tech-savvy talent. Universities such as Sofia University of Technology and Sofia University “St. Kliment Ohridski” are known for their strong engineering and computer science programmes, producing hundreds of qualified graduates every year.
Competitive cost structures
One of Bulgaria’s biggest selling points is its competitive cost structure. Compared to other European countries, Bulgaria offers significantly lower operating costs, making it attractive to foreign investors and multinational companies. This cost advantage, coupled with the availability of skilled labour, makes Bulgaria an ideal location for IT outsourcing and development centres.
Government initiatives to promote the IT sector
The Bulgarian government has recognised the importance of the IT and software industry and has launched various initiatives to promote growth. These include tax incentives, investment in technology education programmes and support for start-up incubators. These measures aim to create a favourable environment for innovation and entrepreneurship.
A growing start-up scene
The start-up scene in Bulgaria is flourishing, led by a young generation of entrepreneurs who are ready to push the boundaries of what is possible. Sofia, the capital, has become the epicentre of this movement, with a variety of co-working spaces, accelerator programmes and networking events creating a vibrant community of innovators.
An outstanding example of innovative companies from Bulgaria is Donamics. Here, a leading company in the field of cargo drone aviation is emerging which, according to its own statements, is far ahead of the competition. The company’s aim is to revolutionise freight delivery with an air freight system using long-haul freight drones in order to save time, costs and CO2 emissions. Founded in 2014 by the Rangelov brothers, Dronamics employs over 180 people from 12 nations and operates offices worldwide. Their team consists of experts from various industries. Software and IT play a central role here.
Key statements about Dronamics:
The Black Swan drone is specially designed for cargo transport. It can carry a payload of 350 kg over a distance of 2,500 km. It is more cost-effective and environmentally friendly than conventional air freight transport.
The company offers an all-in-one solution for logistics, including drones, drone harbours and control systems. This solution is faster, more cost-effective and more environmentally friendly than conventional transport methods.
Dronamics’ solution is suitable for various industries, including e-commerce, perishables, engineering, luxury goods, pharmaceuticals, healthcare, humanitarian aid and mining. Dronamics is an example of Bulgaria as an innovative and growing business location. The well-known Bulgarian fund Eleven Ventures was the first supporter of Dronamics.
Some of the leading Bulgarian start-ups in the IT and software sector should be added here. With their products and the current investment volume, they want to arouse curiosity and encourage independent research.
AMPECO: This is a platform for charging electric vehicles. In their last financing round, they received 13 million dollars in Series A funding. Investors include BMW i Ventures.
Transmetrics: An AI-driven logistics platform. They received 2.5 million dollars in seed funding in their last financing round. Investors include the EIC Accelerator.
EnduroSat: Offers satellites as a service. They received 10 million dollars in Series A funding in their last financing round. Their business model is B2B and SAAS, and they are active in travel tech
Healee: A telemedicine platform that supports doctors and patients through convenient and accessible virtual contacts. They received $2 million in seed funding in their most recent funding round. Investors include Calm/Storm Ventures, Nina Capital and Kaya VC
FlatAway: An flat rental platform that is transforming the flat rental process in Bulgaria. They received $530,000 in pre-seed funding in their latest funding round
There are also a large number of up-and-coming companies in the Bulgarian IT and software industry, but these five start-ups are currently among the most notable.
This emerging business centre is proof that innovation and technological progress know no borders and make dynamic development possible. Bulgaria, once on the fringes of the European technology conversation, is now at the centre of attention – a testament to what is possible when talent, government support and entrepreneurial spirit come together.
As a result, Bulgaria’s GDP per capita is expected to increase by 37% over the next 3 years. The SW and IT sector will play a significant part in this.
TVM is an integral part of this success story. Embedded in the dynamism and innovative strength of the location on the one hand and led by a management team with university education and professional experience in Germany on the other, TVM demonstrates a unique fusion of global perspective and local expertise and thus acts as a further example of the up-and-coming Bulgarian technology sector.
