Eastern Europe’s Tech Revolution: €3.89 Billion VC Investment Signals Market Transformation
Eastern Europe has emerged as a powerhouse in the global tech ecosystem, attracting an impressive €3.89 billion in venture capital across 1,286 deals in 2024. This unprecedented investment surge revealed in the comprehensive “Venture in Eastern Europe 2024 Report” by How to Web and Infobip, signals a dramatic shift from an emerging market to a mature, innovation-driven technology hub.
A New Chapter in European Tech Investment
The landscape of European technology investment is experiencing a seismic shift eastward. With deep engineering expertise, capital efficiency, and growing cross-border collaboration, Eastern Europe is rapidly redefining its role in global innovation. Success stories like UiPath, Bolt, and Infobip have blazed the trail, demonstrating the region’s potential to produce world-class technology companies. This transformation is backed by hard numbers: follow-on rounds reached an impressive €3.6 billion, representing over 90% of total venture capital investment. This strong showing in later-stage funding reflects growing investor confidence in the region’s ability to nurture and scale successful tech ventures.
Late-Stage Investments Lead the Charge
The maturity of Eastern Europe’s tech ecosystem is particularly evident in the dominance of late-stage investments. Series A, B, and C rounds took center stage in 2024, indicating a robust pipeline of companies that have proven their market fit and are ready for significant scaling. This trend suggests that investors are finding value in companies with established track records and demonstrated resilience in challenging market conditions.
Find the full report here.
Romania: A Rising Star in the Regional Ecosystem
Romania’s performance stands out as particularly noteworthy in this evolving landscape. For the fourth consecutive year, Romania’s venture capital investments exceeded €100 million, highlighting its growing appeal to international investors. While this figure might seem modest compared to some Western European markets, it represents significant progress and points to untapped potential in the Romanian ecosystem. The success isn’t limited to a single standout company; rather, a diverse range of Romanian startups are contributing to the nation’s upward trajectory, creating a more resilient and varied tech ecosystem.
Industry Diversification Signals Market Maturity
The top 20 deals of 2024 reveal a healthy diversification across sectors, with finance, aerospace, and e-commerce leading the way. This broad distribution of investment across industries indicates a maturing market that’s capable of supporting innovation across multiple sectors. It also suggests that Eastern Europe is moving beyond its traditional reputation as purely a source of technical talent to become a comprehensive innovation hub.
Looking Ahead: The Future of Eastern European Tech
As How to Web CEO Alexandru Agatinei notes, the market is experiencing a significant shift toward capital efficiency and metric-driven growth. This focus on fundamentals, combined with the region’s traditional strengths in engineering and innovation, positions Eastern Europe for sustainable long-term growth in the global tech ecosystem.
“What 2024 showed is that the industry is experiencing a cycle turn—a focus on frugality, dedication, and grinding with all forces to solve really hard problems using technology. In order to bring hard things to life, grit and endurance are essential. The brutality of the market is a normal thing. It always has been so in the early stages of startups. Because of last year’s hype, both founders and investors lost some discipline. But we can now see that the focus turned back on metrics and capital efficiency. The best companies always have an amazing work ethic. Startups are hard and require this intensity to survive and thrive.” says Alexandru Agatinei, CEO of How to Web.
For investors and entrepreneurs alike, the message is clear: Eastern Europe is no longer just an emerging market—it’s a vital force in shaping the future of global technology. With strong institutional support, growing cross-border collaboration, and a proven track record of success, the region offers compelling opportunities for those ready to participate in its continued growth and innovation.
