Today, we will give you a sneak peek of the latest event part of our Community Dialogue series from Tech Investors Academy. This event was focused on insights from international VC Partners. Prepare to delve into the dynamic and knowledge-packed insights gathered from this session as we equip you with invaluable knowledge to navigate the world of venture startup investment.

The following guests sparked this discussion:

• Octavian David, event host and a member of our SeedBlink community;
• Diana Koziarska, Founding Partner at SMOK Ventures & Nomad VC in CEE;
• Alexandros Eleftheriadis, Partner at Big Pi Ventures.

Together, we will navigate the ever-evolving landscape of venture startup investment inspired by the experience and knowledge of Alexandros and Diana.

The State of Startup Funding in CEE

The development of a startup community fits into two distinct stages: early stage and late stage.

Central and Eastern Europe (CEE) went through an extended period in the early stage, where entrepreneurs often had to leave their home countries for better opportunities due to limited funding. Success seemed out of reach, and building something significant felt like an uphill battle.

However, times have changed, and CEE has entered the second development phase, witnessing a remarkable transformation within its startup ecosystem.

Today, entrepreneurs who once sought greener pastures abroad are returning to CEE, bringing a wealth of experience and knowledge. These individuals have transitioned from startup founders to becoming angel investors and venture capitalists, actively contributing to the growth and development of the community they once had to leave behind.

“What is happening in our region right now is creating a dynamic where the wisdom gained from previous experiences is shared within the community, fostering a culture of collaboration and mentorship.”, says Alexandros Eleftheriadis, Partner at Big Pi Ventures.

Although the startup ecosystem in CEE has made significant strides, late-stage capital often requires funding from international investors in the West.

However, there is reason for optimism as the perception of CEE among global investors has changed. You can now choose to stay in CEE but still get access to international capital and resources.

“The global impact of the COVID-19 pandemic has accelerated the acceptance of remote pitching, making it more accessible for regional entrepreneurs to engage with international investors.

These investors are beginning to recognize CEE's untapped potential and value, opening doors for startups to secure the funding they need to scale and thrive.”, says Diana Koziarska, Founding Partner at SMOK Ventures & Nomad VC in CEE

The Top Pain Points CEE is Facing Right Now

Alexandros and Diana also tackled two significant elements that still need to be added to our ecosystem. Let’s find out about these challenges!

Sharing Knowledge & Experience

Travelling has a profound impact on individuals, shaping them into well-rounded professionals. This transformative experience opens up new opportunities for founders who have explored beyond their home countries.

These founders return equipped with a unique mix of local market knowledge and an extensive network of connections in Western countries. This unique combination of local expertise and global exposure gives them a competitive advantage in the startup ecosystem, enabling them to navigate challenges more effectively.

CEE Needs to Think as a Region

CEE could grow even more by looking beyond the boundaries of individual ecosystems and focusing on building bridges that foster connections. The true power lies at the intersection where founders from different regions converge, exchange insights, and collaborate.

“Venture capital funds play a crucial role in nurturing these bridges as they closely engage with founders, gaining a deep understanding of their challenges and struggles. By actively facilitating the cross-pollination of ideas and resources among startup communities, VCs contribute to the growth and success of companies throughout their journey.”, says Diana Koziarska, Founding Partner at SMOK Ventures & Nomad VC in CEE

This goes beyond the initial stages of securing pre-seed or seed funding, ensuring that startups overcome the challenges they will face.

Addressing these pain points and finding practical solutions is crucial to unlocking the full potential of the CEE startup ecosystem.

How Does the Diaspora Community Impact CEE?

People from the diaspora bring a unique dual perspective, knowing the local community and the region they have moved to. This diversity of experience allows them to understand the needs and demands of the sector they operate in from two different angles.

Their contributions bring fresh perspectives and innovative ideas and help bridge the gap between the local ecosystem and international markets, fostering collaboration and knowledge exchange.

“In recent years, big tech companies have grown trust and interest in acquiring startups from Central and Eastern Europe (CEE). The region has witnessed a rise in successful startups that have gained recognition for their innovation and growth potential.”, says Alexandros Eleftheriadis, Partner at Big Pi Ventures.

These trends led to increased confidence from global tech companies in the capabilities and potential of CEE startups. Additionally, big technology companies are gaining more trust to acquire companies in CEE.

Growth — Still an Issue

One of the most significant challenges startups face in Central and Eastern Europe (CEE) is the limited availability of late-stage venture capital. While the region has made substantial progress in nurturing its startup ecosystem, the need for more VC firms specializing in funding at later stages of startup growth is still there.

“Without sufficient access to late-stage funding, promising startups may struggle to secure the resources needed to reach their full potential and compete globally.”, _s_ays Alexandros Eleftheriadis, Partner at Big Pi Ventures.

While CEE has made notable advancements in recent years, it still has room to grow and fully realize its potential as a thriving hub for startups. Compared to a decade ago, the region is in a much better position, with increased entrepreneurship and a more supportive environment for startups to flourish.

“We are finally learning how to take what works in the US and apply it here.

The region can further enhance its startup funding landscape by leveraging proven strategies and adapting them to suit CEE's unique challenges and opportunities.”, says Diana Koziarska, Founding Partner at SMOK Ventures & Nomad VC in CEE

In today's fast-paced and ever-evolving landscape, trends, especially regarding artificial intelligence, come and go rapidly.

“Nowadays, for investors, it feels like we are walking on the sandy beach while looking for the next shiny diamonds. Times and trends are changing faster than before.”, says Alexandros Eleftheriadis, Partner at Big Pi Ventures.

Whether an aspiring investor or a seasoned professional, these takeaways will enhance your understanding and inform your investment strategies. However, investing in startups involves inherent risks, and it is essential to recognize that trends in the startup landscape are subject to fluctuations.

The information provided in this article or any investment-related content should not be considered financial advice or a recommendation to invest in any specific company or industry. Investors must conduct thorough research and due diligence before making investment decisions.