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Serbian startup ecosystem in 2024: Growth, challenges and future expectations

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The global startup ecosystem in 2024 remained dynamic, with numerous companies making an impact. However, only a handful of startups in Serbia experienced significant growth, despite a continued increase in the number of early-stage startups.

The “Startup Scanner” report highlights the steady growth of Serbia’s domestic innovation ecosystem, with over 300 new startups launched in the past two years. Despite this, the rapid expansion has resulted in a decrease in ecosystem maturity, signaling a need for improved support mechanisms and the creation of new ones.

In 2024, similar to the previous year, Serbian startups attracted notable investments. However, these investments still fall short compared to those seen in more developed ecosystems. While these investments supported idea development, team expansion, and product internationalization, overall investment activity was notably lower than in previous years, particularly when compared to 2021.

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Key industries dominating investments include startups utilizing artificial intelligence, FinTech, and those from the catering sector.

In addition to attracting investments, changes have occurred in the structure of support programs for startups.

“Compared to the most developed ecosystems in Europe, such as London, Berlin, and Amsterdam, Serbia still lacks many versatile support programs. However, in comparison with other countries in the region, Serbia ranks high, particularly in recent years when the largest number of support programs were launched,” the report notes.

Financial support has increased, with some programs created and others disappearing over the last 12 months. Some programs concluded their support for startup cohorts in 2024, and their future remains uncertain.

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An encouraging trend is the growing involvement of large companies in the startup ecosystem, positioning themselves as crucial partners for startups and organizations supporting them. The focus has increasingly shifted towards artificial intelligence (AI) development and its application within the Serbian startup ecosystem, reflecting growing recognition of AI technologies as critical drivers of innovation and growth.

Challenges faced by startups

Serbian startups in 2024 faced numerous challenges affecting their growth and sustainability. These included difficulties in accessing capital, hiring skilled talent, scaling businesses, and expanding into new markets, all compounded by global economic uncertainty and market competition.

Global visibility: Key steps on the global stage

Startups in Serbia often face limitations in the domestic market, which has a population of just 6.4 million. With only 15 million people in the region, many startups must seek opportunities outside the country from the very beginning. Expanding into larger, more developed markets is often essential for success. International visibility plays a key role in facilitating this expansion, providing startups access to resources like funding, expertise, talent, and strategic partnerships.

In 2024, numerous Serbian startups participated in major global technology events such as the Web Summit in Lisbon, GITEX in Dubai, and Slush in Helsinki. These events offered invaluable opportunities to network, learn, and explore emerging trends and technologies. Face-to-face interactions at these gatherings are often pivotal in securing business deals and forging partnerships.

Support programs also focused on helping startups reach international markets. For example, the ICT Hub, in collaboration with the Digital Serbia Initiative and the Japanese Agency for International Cooperation, launched the NINJA accelerator, which helps five Serbian startups scale their businesses in Asia.

To sustain growth, the Serbian startup ecosystem must maintain its global visibility and presence at international events. This ongoing exposure strengthens the competitiveness of startups and positions Serbia as a key player in the global tech scene.

Expectations for the Serbian startup ecosystem in 2025

Looking ahead to 2025, there are high expectations for continued growth and development in the Serbian startup ecosystem. Several key trends are anticipated:

  • Growth in new startups: The number of new startups is expected to continue rising, indicating a growing interest in entrepreneurship and innovation. This influx of new teams and ideas will inject fresh energy and diversity into the ecosystem, fostering long-term development.
  • Scaling startups: Startups that have moved beyond initial stages are poised for accelerated growth. Their success could bring increased visibility not just for the startups themselves, but for the entire ecosystem, leading to new opportunities for investment, partnerships, and talent.
  • Improvement of support programs: The improvement and expansion of support programs, incubators, accelerators, and mentoring networks will remain vital for the growth of startups. Adaptation to global standards and the evolving needs of the Serbian startup community will be key to success.
  • Corporate involvement: Corporations are expected to play a larger role in the ecosystem, offering opportunities for strategic partnerships. These collaborations will help startups access the resources, expertise, and markets necessary for rapid growth.
  • Monitoring global trends: Adapting to global technological trends will be essential for survival and competitiveness. Serbia’s startup ecosystem will continue to embrace innovations like artificial intelligence, automation, and sustainability, positioning itself to capitalize on these developments.
  • AI integration: The continued integration of artificial intelligence across various sectors of society is expected to be a key trend. AI’s potential to improve processes in healthcare, education, industry, and public administration will drive innovation and open new growth opportunities for startups.

In summary, the Serbian startup ecosystem is poised for continued growth in 2025, with a focus on scaling, international expansion, AI development, and improved support mechanisms. As the ecosystem matures, Serbia’s startups will increasingly make their mark on the global stage.

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