- The Second International Conference “INNOVATE. INVEST. INSPIRE.” was held on October 16 in Sofia. It continued the important conversation of the evolution of innovation in Bulgaria and the EU.
- The event welcomed more than 200 people that discussed redefining smart investments in the age of artificial intelligence to how Bulgaria encourages the continuous development to retain talent and companies, as to foster investors’ resources. That very conversation was fostered by 20 speakers and moderators that shaped a realm of possibilities to continuous efforts from the public authorities, business and academia that should make Bulgaria a hub of innovation and startups.
- The conference was co-organized by BOYANOV & Co. and the American Chamber of Commerce in Bulgaria, with the support of the European Commission, the European Investment Bank, Innovation Norway, GATE Institute at Sofia University “St. Kliment Ohridski”, and the British Bulgarian Chamber of Commerce. It was held at Hilton Sofia.
Opening
The event was opened by Attn. Borislav Boyanov, Co-Chair of the Organizational Committee: “Implementing innovation requires fresh mind, adaptive behavior and strong culture. It ensures survival and development. Innovations are the necessity to remain relevant.”
Addressing the audience via a specially recorded video, Ekaterina Zaharieva, European Commissioner for Startups, Research and Innovation said: “Today innovations are not just part of the economy – they are the economy. They define who to lead, who will create the solutions of the future, who will inspire the next generation. The EC has clear ambition – to sustain the leading role of Europe. We are already working on European Innovation Act, that will be presented in 2026. It will help startups to have direct market access. It will provide working, testing environment for the innovators to probe their solutions in real market conditions. (also) Soon we will start the Scaleup Europe Fund – a multibillion instrument created together with private and public investors. It will complement the 10-billion-euro support from the European Innovation Council, that is already finances bold ideas – from the lab to the market.”
Martin Danovsky, Deputy Minister of Innovation and Growth of Bulgaria, made two appearances during the event – he had an opening speech and took part in the Panel 1: Smart Governance for Smart Growth. In his words, the innovation policy is becoming a strategic necessity for a sovereign policy. “Bulgaria has made significant strive in this path. We are committed to making Bulgaria a genuine innovation hub in Southeast Europe. Regulatory innovation represents a fundamental shift in how the government and innovation interacts. Technology transfer and ai transformation are necessary, as well as addressing the regional disbalances – investing in poorer regions of the country and helping them grow.” He was certain that the efforts of the Ministry of Innovation and Growth are working to find ways to unlock the existing untapped potential across the country, as well as is engaging stakeholders in an honest dialogue about the legislative changes that need to be done.
A keynote was delivered by Andras Havas, Senior Partner, McKinsey Hungary, who presented highlights of the recent report of the McKinsey Global Institute – The power of One: How Standout Firms Grow National Productivity (link). It states that to boost growth, the EU must invest in innovation – it’s the key to unlocking productivity, and productivity is the key to creating value for everyone. He spoke about Europe’s challenges and opportunities broadly and key learnings for company executives around it. The report’s findings were not only relevant for startups but also for incumbent companies.
“Productivity acceleration is the only way forward for Europe. In every economy, a few companies drive the bulk of it. Also, Will Europe be prepared to face lack of competitiveness or other global and geoeconomic threats? Productivity acceleration is essential for Europe to regain growth. This requires substantial uplift in investment and innovation. For instance, Capex and R&D spent of European companies is USD 700 below that of US companies.”
Conference overview
Panel 1: Policy-Making Panel: Smart Governance for Smart Growth
The kick-off panel was moderated by Filip Genov, CEO, F27, and member of the Organizing Committee, who welcomed the insight and ideas of Martin Danovsky, Deputy Minister of Innovation and Growth, Kenneth Brincat, CEO, Malta Digital Innovation Authority (MDIA), Prof. Sylvia Ilieva, Director, GATE Institute, Sofia University, Mariya Marinova, Head, Legal Department, Philip Morris Bulgaria, Alexander Nutsov, Policy & Strategy Director, BESCO.
Bulgaria’s Startup Ecosystem is a robust on that was being developed for over the past decade. There are approximately 1,500 active startups and 20+ venture capital funds managing around 1 billion euro. It includes incubators, accelerators, mentorship programs, and advocacy organizations.
The panelists emphasized on the three-layered approach to further development: European level: Harmonizing legislation (AI Act, Innovation Act, 28th regime); the regional level: Integrating capital markets, especially SME growth markets like Bulgaria’s BIM, and national level: Encouraging institutional and angel investment, improving tech transfer.
It was interesting to hear Malta’s Perspective on Digital Innovation presented by Kenneth Brincat, MDIA. “Malta views regulation as an enabler of innovation, not a barrier. Malta’s focus has shifted from economic growth to societal well-being through digital innovation. In 2018, Malta introduced a legal framework for virtual financial assets, now harmonized across the EU.” The MDIA was created to regulate technology. Mr. Brincat also pointed out the importance of the so-called legacy industries (banks, insurance, logistics) that are embracing innovation.
Prof. Ilieva explained the role of research institutes, such as Gate Institute at Sofia University that operates with a startup mindset. “Today Gate Institute is prototyping a regulatory sandbox to help companies navigate EU regulations like the AI Act.” For example, UK data shows sandboxes significantly improve startup funding and survival rates. They can also benefit regulators and society by fostering innovation and feedback loops.
Then the conversation went forward, discussing the challenges and solutions for European Startups. The speakers identified three major challenges: fragmented markets; lower valuations compared to U.S. counterparts; and underdeveloped late-stage funding. Startups need capital, talent, and regulatory support.
The potential solutions include reforming education to support deep tech; unlocking institutional and private capital; developing crowdfunding platforms; creating a “28th regime” for unified company registration and investment rules across the EU. Along the solutions, the corporate Involvement is a must. Corporations can support startups by sharing best practices, improving productivity, and investing. Thus, the efforts to strengthen cooperation between large companies and entrepreneurs should continue.
Panel 2: Institutional Investors’ Panel: Capital at Scale
After the conversation about the needs of a well-operating innovation and startup ecosystem, it was time to mobilize the public capital. This panel was by Natanail Stefanov, Vice-Chairman, Sofia Tech Park, and featured speakers such as Teodor Radonov, Head of EIB Group Office Bulgaria, Ivan Ivanov, Chairman of Supervisory Board, Fund of Funds (FMFIB), Venceslava Yanchovska, Manager, Innovation Norway
Teodor Radonov presented the European Investment Fund’s role in nurturing new investment opportunities for the next startup wave, as well as he talked about the performance, outcomes and challenges of the funds in Bulgaria and CEE.
Ivan Ivanov emphasized that the Fund of Funds has already invested over EUR 150 million of public and private capital in five equity and quasi-equity funds, which have supported 327 Bulgarian companies – including leading examples such as MYX (digital twin technology) and Alcatraz (AI-based solution for autonomous access control). He recalled that 3 out of every 5 startups financed by venture funds in Bulgaria between 2019-2023 have received support through funds managed by FMFIB.
Ivan Ivanov also emphasized the key challenge facing the ecosystem – difficulty in attracting capital from institutional investors (pension funds, insurance companies, etc.), which slows down the scaling of companies. For example, the pension funds only in Bulgaria, Croatia, Slovakia, Czechia, and Poland are not allowed to invest in venture capital. And that requires regulatory change.
He also quoted Fi-compass that the equity financing gap in Bulgaria is at EUR 1,3 bn, and around 5,600 viable Bulgarian companies face difficulties in accessing equity financing. Also, the ECB’s 2024 Access to Finance for Enterprises (SAFE) survey, 11% of Bulgarian companies are high growth (compared to an EU average of 9%), i.e. they have achieved over 20% annual turnover growth in the past three years.
“In the coming years, the Fund of Funds will mobilize over EUR 1 bn of public resources in support of innovation, digitalization and regional development from programs co-financed by the EU. The next step is to attract more private capital to make the Bulgarian ecosystem even more competitive at the European level,” emphasized Ivan Ivanov.
Venceslava Yanchovska presented the experience of Innovation Norway which main objective is to stimulate commercially and socioeconomically profitable business development and realize the commercial potential of the regions. It offers a big range of services to private businesses in Norway – acting as a development bank, providing crucial loans and grants, promoting trade, facilitating investment, and developing innovation across industries.
In November 2024 the Ministry of Trade and Industry presented the white paper on entrepreneurs and start-ups. The report focuses on: Equip Norway to handle future economic transformations, including the shift to renewable energy, digitalization, demographic changes; Encourage more growth‑oriented startups, not just many small firms; Build inclusive entrepreneurship: ensure better gender balance, geographic equity; Simplify interaction between business actors and the state; Leverage public policy to complement – not replace – private initiative.
The Norwegian model of its startup ecosystem includes Public Sector Support, Capital Availability, Skilled Workforce, Digital Readiness & Infrastructure, Sustainability Focus, Collaboration and Partnerships, Strategic Industry Focus.
Being a non-EU member, Norway together with Iceland and Liechtenstein is part of the EEA Agreement thus entering the EU Common Market. The EEA Agreement also includes a common goal to work together to reduce social and economic disparities in Europe and to strengthen bilateral relations. Thus, Norway has been supporting projects in Bulgaria for the past 18 years. Innovation Norway has been operating in Bulgaria since 2007, and for the financial period 2014-2021 it was responsible for the implementation of the Business development, Innovation and SMEs program. The new EEA Agreement 2021 – 2028 will allocate EUR 260 million for Bulgaria in development and placing on the market, and Investments in and application of green or blue technologies, products, processes, and services; promotion of start-ups and female entrepreneurs in the blue or green economy; Improving business skills and fostering entrepreneurial mindsets.
Panel 3: Venture Capital Panel: Backing Tomorrow’s Unicorns
As a vital part of the any ecosystem, providing capital for startups and addressing the question “What is next” were centerfold topics of the conversation moderated by Momchil Vassilev, Managing Director, Endeavor Bulgaria. He welcomed Angel Angelov, Managing Partner at Innovation Capital, that is active in pre-seed investments in Southeast Europe, with 180 companies in its portfolio. Also involved with OEC Ventures (focused on AI, health, and FinTech). Jordan Stoyanov, CEO & Founder, Payman Group and Partner, and partner at Neveq І & Neveq ІІ, and in New Vision 3 – a later-stage fund managing nearly 40 companies. The third panelist was Stoyan Nedin, Managing Partner at Vitosha Ventures, which has invested in 107 companies and is launching a second fund of 34 million euro.
Their talk started from the cyclical nature of VC funding, that in Bulgaria the VC activity is heavily influenced by European Commission budget cycles. For example, the peaks in funding in 2023 were followed by “droughts” in 2024 – 2025. This creates instability that affects both investment strategies and portfolio companies, many of which struggle to raise follow-on rounds during downturns.
The Impact on Startups can be characterized by their shift from growth-first to cashflow-first models during funding droughts. We can witness that some evolve into lifestyle businesses, which offer different return profiles. Lack of local support in later stages forces startups to seek international funding, often before they’re ready.
Having VC Funds in the panel imminently led to the role of private investors. Private LPs are more rational and return-focused, unlike institutional EU funding which can inflate valuations. Scarcity of capital can be an advantage, fostering resilient and sustainable business models.
The four VC professionals talked about the structural challenges. Bulgaria has many early-stage funds but insufficient growth-stage capital (Series A/B). However, the so-called “dead valley” between 3-million-euro and 15-million-euro rounds is particularly hard to fill. Fund mandates often restrict investment scope (e.g., local-only focus), limiting scalability.
In the end they shared some of their recommendations. Earlier fundraising by fund managers should be allowed to maintain market activity. Mandates should be more flexible, allowing regional investments and larger checks. Emphasis should shift from quantity to quality of startups, with bigger investments in fewer, stronger companies.
Panel 4: “Startups 2030: Building Bold Companies in a High-Stakes Decade
The last panel, was moderated by Kalin Radev, CEO, Software Group and included speakers such as Mihail Petrov, CEO, Schwartz IT, Andrey Bachvarov, CEO, Anthill, Co-Founder, EPIX.AI, Yordan Iliev, CEO, MY Synergy, and Victor Danchev, Chief Technology Officer, Endurosat.
Their discussion started with education as a foundation for innovation. For example, EnduroSat created an educational initiative called Space Challenges, which evolved into a talent pipeline. Schwarz IT runs programs like GEN-I (Generation Innovation) that foster multidisciplinary collaboration between universities and businesses, solving real-world problems. Each of them emphasized upskilling and cross-skilling as essential for building adaptable talent in a fast-changing tech landscape.
Building the Next Generation of Founders requires resilience, risk-taking, curiosity, agility, confidence, and global thinking. European startup ecosystems are more conservative than the U.S., requiring higher readiness levels before funding. Also, Mentorship and early exposure to entrepreneurship are vital, especially in conservative sectors like healthcare.
Having a panel of globally wise professionals, it was logical to discuss global vs. local startup strategy. Of course, the debate went on if startups should go global from day one or prove themselves locally first. Some of them argue Bulgaria can serve as a sandbox for testing, while others stress the need to think globally due to limited local market size and mindset.
The moderator pushed the conversation on how to leverage AI in Startups. In their replies the speakers mentioned that startups should utilize existing AI frameworks (e.g., ServiceNow, Google, Microsoft) rather than building from scratch. The rise of agentic AI and low-code/no-code tools mean non-engineers can now build powerful solutions. Key take-away was that AI should be treated like a junior team member – useful but requiring oversight and validation.
Of course, having a realistic conversation led to the debunking of the myths of AI. It is not a magic solution; context and orchestration are key to effective use. Real-world examples (e.g., Waymo, AstraZeneca) show AI outperforming humans in specific tasks. Europe’s regulatory-first approach may hinder innovation compared to the U.S.’s more agile model.
In conclusion, the speakers provided their piece of advice to the aspiring founders: Fail fast, iterate faster; Work hard, stay true to your vision; Use AI as a tool, not a crutch, Be bold, but stay grounded.
About the event
Institutional partners
The conference on the business cycle of startups and ways to stimulate innovation is organized with the support of the European Commission, the European Investment Bank, the British Bulgarian Chamber of Commerce, Innovation Norway, and the GATE Institute at Sofia University “St. Kliment Ohridski.”
Partners
- Diamond sponsor: M Car Sofia (BMW Dealer), and Philip Morris Bulgaria.
- Gold sponsor: ING Bank and DPM Metals Bulgaria
- Silver sponsor: Schwarz IT.
Media partners are Bulgarian Telegraph Agency, Bloomberg TV Bulgaria, Bulgaria On Air, Investor.bg, and Capital Weekly.
