Kosovo’s startup ecosystem is facing a period of stagnation in 2025, mainly driven by the sudden suspension of international donor funding and the lack of government programs specifically designed to support startups. The freeze of USAID’s operations—worth more than $156 million across 17 projects—left incubators, accelerators, and NGOs without operating budgets, forcing the cancellation of grants, training, and export support. As a result, local organizations are struggling to remain sustainable, while founders are left without reliable growth pathways.
The public sector has begun engaging with the innovation ecosystem, but these efforts have had a limited impact so far, with only a handful of startups benefiting from them. This mismatch between public initiatives and the real needs of startups has widened the gap in available support, creating a risk that talent and companies will relocate to neighboring Albania or Western Europe.
Despite these challenges, resilience remains a defining feature of Kosovo’s founders, who continue to grow their businesses. Still, access to finance is the ecosystem’s biggest bottleneck: only €40,000 in grants were reported this semester, and just one active investor engaged in the market. Angel investing is still in its early stages, but with the joint efforts of Swiss EP and Keiretsu Forum through training, pitching events, and matchmaking, raising awareness of angel investment as a financing option is gradually increasing.
Swiss EP is also collaborating with Makerspace to launch Kosovo’s first pre-acceleration program, with plans to integrate it with Endeavor Bulgaria’s new regional platform, thereby creating a much-needed pipeline for startups seeking to expand beyond the local market. Initiatives like these, alongside international partnerships and diaspora engagement, will be crucial in keeping founders engaged at home while the ecosystem navigates this challenging period.
