Bulgaria has slipped in the Global Startup Ecosystem Index 2025, dropping four places from 37th to 41st worldwide. Analysts at StartupBlink attribute the slide to a slight decline in ecosystem growth, despite stable macroeconomic conditions and the country’s strong technological talent pool. Within the EU, Bulgaria ranks 19th, while in Eastern Europe it holds seventh place. The country performs particularly well in the transport sector, claiming fourth place regionally and 10th in the EU.

Sofia’s rise has stalled, losing 12 places globally to 129th, but the capital remains a technological hub for the region. It retains its ninth position among Eastern European cities and is clearly ahead of the next Bulgarian city, Varna, by a wide margin - 15 times higher on the overall index score. Cloud technologies remain Sofia’s strongest sector, where it ranks 56th worldwide and second in Eastern Europe, only behind Tallinn.

Varna emerges as the country’s standout performer in 2025, growing by 41.4% and climbing 50 places to 569th globally. Its Web Development sector benefits from a young IT community, improved infrastructure, and new coworking spaces, driving the city’s rapid ascent. Plovdiv, in contrast, reports negative growth of 26.2% and falls out of the global top 1000, marking it as Bulgaria’s only city showing decline in this year’s index.

Bulgaria’s startup ecosystem rests on a decade of structured growth, combining public-private collaboration and support from organizations such as BESCO, Vitosha Venture Partners, Endeavor Bulgaria, and media platform The Recursive. European capital sources, including the Fund of Funds and EBRD programs, continue to provide funding, with initiatives like the EBRD Star Venture program supporting early-stage startups. The BSMEPA promotes Bulgarian startups internationally through events such as We Make Future in Sofia.

Government efforts to attract foreign entrepreneurs include the Startup Visa, designed to facilitate international engagement. Invest Sofia also supports foreign companies establishing a presence in the capital. However, structural challenges remain. Heavy reliance on IT outsourcing retains talent in corporate roles rather than entrepreneurial ventures, while the small domestic market makes scaling difficult for product-focused startups.

Looking ahead, Bulgaria maintains key assets for sustainable growth: a strategic location, solid digital infrastructure, stable taxation, and growing governmental involvement. The success of Payhawk, Bulgaria’s first unicorn, continues to attract international investor attention. The company is valued with an SB Score of 542, reflecting its global influence, workforce, investments, and growth trajectory.