How Serbia built one of the Western Balkans' strongest startup ecosystems

Over the past decade, Serbia has quietly laid the foundation for startup ecosystems to grow. Today, it is often recognized as the most developed startup ecosystem in the Western Balkans.

Serbia has a developed network of state-backed public organizations to support early-stage startups (including Innovation Fund Serbia and Science Technology Parks in Belgrade, Novi Sad, Niš, and Čačak), a steady influx of capital from private investors (through local angel network and domestic VCs), as well as constant presence of regional and global capital), a strong talent base, founders willing to give first and lead their own communities, and a critical mass of ecosystem builders who grew with the environment around them.

Having been part of this exciting story since 2015, Swiss EP has had the opportunity to observe this evolution firsthand and contribute to it. Looking back over the past decade, one thing becomes clear: Serbia's success was not the result of a single breakthrough. It was the result of an ecosystem gradually maturing.

Success is visible today, but it wasn't built overnight

At first glance, Serbia's ecosystem presents a compelling picture.

The country has developed a strong STEM talent base, with around one-third of university graduates coming from science, technology, engineering, and mathematics disciplines. More than 125,000 people now work in the ICT sector, making it one of Serbia's fastest-growing industries.

The startup ecosystem itself has expanded considerably. Depending on the methodology used, Serbia is home to between 300 and 750 startups, employing between 6,000 and 8,000 people. Investment activity continues to grow. According to Garaza's Serbian startup funding report 2025, the amount increased overall from CHF 32 million in 2024 to CHF 43 million in 2025.

One figure perhaps says even more about the ecosystem's character: 92,5% of startups remain bootstrapped, relying on their own resources before raising external investment or applying for grants. Many founders have learned to build sustainable businesses before seeking venture capital.

These numbers describe where Serbia is today, but they do not explain how it got there.

The questions changed as the ecosystem matured

Looking back over the last decade, the evolution of Serbia's startup ecosystem can almost be traced through the questions it sought to answer.

First: How do we create the conditions for startups to emerge?

When Swiss EP started working in Serbia in 2015, much of the effort was already focused on building foundations. Support organizations, such as incubators and accelerators, were strengthening their capacities. Ecosystem actors started connecting with one another. Founders started to share their experiences learning from peers, first local ones, and later international (often brought by Swiss EP).

The priority wasn't rapid growth: it was creating an environment where startups could flourish over time.

Then: How do we help more startups grow?

As those foundations grew stronger, the ecosystem began to reinforce itself. Support organizations became more experienced. New programs emerged while others evolved or concluded. Investors became increasingly active, startup numbers grew, and founders became more ambitious.

Perhaps most importantly, relationships across the ecosystem became stronger. Organizations started coordinating and collaborating rather than working in isolation. Founders started to gather more informally. Local investments started to take shape. And Serbian startups grew stronger.

The conversation gradually shifted from creating startups to helping promising companies grow.

Today: How do we help Serbian startups scale globally?

The ecosystem has now entered a different stage of development. The challenge is no longer simply creating more startups. It is helping ambitious companies access larger investment rounds, expand internationally, attract experienced talent, and become globally competitive businesses.

The central questions inside the startup ecosystem have changed over time and that may be one of the clearest indicators of how much the ecosystem has matured.

What Serbia built differently

Distinctive growing path shaped several characteristics that distinguish Serbia today:

• Private capital is a growth driver - across Swiss EP-supported startups, we have tracked more than CHF 128 million raised over the past decade. Notably, much of this capital came from private investors. In many emerging ecosystems, startup activity depends heavily on public funding. Even if public funding is available in Serbia, the country proves that investors are willing to deploy capital because they see commercial opportunities, creating stronger market signals for founders.
• Angel investing is visible and organized - Serbia has gradually developed a structured angel investment landscape with DSI Business Angel Network helping transform angel investing from an occasional activity into a standard practice. This development is significant because angel investors also bring experience, networks, and credibility, helping founders navigate the difficult early stages of company building.
• Startup support organizations learned to work together - one of the ecosystem's strengths is the level of coordination among support organizations. In Serbia, these actors frequently meet, exchange information, refer startups to one another, and coordinate initiatives. For founders, this creates a more coherent support journey, and for the ecosystem, it reduces fragmentation and strengthens collective impact.
• The "Give First" culture is taking root - One of the strongest indicators of ecosystem maturity is what successful founders do after they succeed. Increasingly, Serbian founders are becoming mentors, angel investors, community leaders, and supporters of new entrepreneurs. Communities such as Garaža, privately initiated accelerators (such as SEE UP Accelerator), and growing angel investment activity all point toward an ecosystem that is beginning to generate its own momentum.

Progress creates new challenges

Success does not mean the work is finished. In many ways, the ecosystem's next challenges reflect how far it has already come. Therefore, Serbian ecosystem still has a lot of work:

1. The ecosystem's scale-up pipeline is still relatively narrow. Much of its visibility and performance depends on a small number of standout companies. While these successes are valuable, long-term resilience requires a broader base of startups capable of reaching scale.
2. Access to growth-stage capital remains challenging. While angel investing has advanced considerably, the gap between early-stage funding and larger venture capital rounds remains difficult for many founders to navigate.
3. Gender inclusion also requires continued attention. Female-founded startups continue to receive a disproportionately small share of available investment capital, highlighting unresolved structural barriers.
4. Outsourcing continues to dominate much of the technology sector. While this model has created jobs, expertise, and revenue, the next stage of ecosystem development depends on creating more pathways toward scalable product companies.

These challenges are not signs of failure. They are signs that ecosystem development is an ongoing process.

A decade of evolution

If there is one lesson from Serbia's experience, it is that strong startup ecosystems are rarely built through isolated interventions. It takes collective effort and the work of many to grow and continue improving the world (or the ecosystem in this case) around you.

The most important achievements of the past decade are not only the startups that raised funding or entered international markets. They are the structures, relationships, and behaviors that make future success more likely.

The next chapter in Serbia's startup ecosystem development will depend on how the entire system is strengthened, expanded, and passed on to the next generation of founders. Because ecosystems are not built overnight. And neither is lasting success.