2022: A Year of Bulgarian Innovation in Review

If we have to describe 2022, it was a turbulent year that brought a lot of uncertainty. The year began with the easing of Covid restrictions globally and rising inflation. While many expected the latter process to slow down and economies were recovering from the effects of the pandemic, on February 24, 2022, the world was shocked by Russia’s invasion of Ukraine. This accelerated inflation rates and made a recession even more possible. In these uncertain times, it’s even harder to build a successful startup and scale it internationally. With the change in the economic situation, Bulgarian startups proved their potential and dedication to succeed.

Executing the Growth Strategy

Through the course of the year, we welcomed 8 new companies to our Growth Accelerator program to support them in their efforts to scale globally. Another two startups rejoined it for a second time. The total number of alumni is now 43. As the BIH program is focused on expansion and fundraising, we’re glad to see portfolio companies use the knowledge they gained in their growth strategies.

In 2022, our alumni managed to execute their strategies and reached new markets, established relationships with new clients, and created hundreds of job opportunities. For the past three years, our portfolio members have raised over $55M after graduating from our program. With the fresh funds, and knowledge gained through the program, they’ve gained hundreds of new clients and new markets.

Scaling an e-sports solution

For us, one of the stories of this year is the one of Augment. The company has been rapidly growing and expanding the user base of its data platform to analyze information from e-sports matches. So far, the company has secured 20+ partnerships with some of the biggest e-sports teams in the world. The solution saves enormous amounts of time to deliver insights for top coaches at the highest level.

Augment empowers players to understand which elements of the game they can improve on. Based on game APIs and AI algorithms that analyze video footage, they track and systematically order key gameplay elements for analysis and player improvement. The team behind Augment wants to expand and seize the esports training market on these very elements: build a tool for coaches of competitive players and their teams, and unlock gameplay data that will allow them to take actionable data-driven decisions.

Tim Petrov, the founder of the startup, had the opportunity to spend more than 2 months meeting key players in the US ecosystem through BIH program. During this time, he established meaningful relationships with potential clients, investors, and partners to discuss the next steps in Augment’s development. We’ll share Tim’s key takeaways from his participation in the program very soon.

Expansion to the USA

Bulgaria Innovation Hub is dedicated to helping startups with Bulgarian roots to scale their businesses on an international level and help them unleash their full potential. That’s why our program is focused on sharing with them practical knowledge on expanding their operations and managing a global company.

That’s why we’re very happy to see Econic One and phos, two of our portfolio members, set feet on the US market. Econis One is focused on the design, production, and market development of smart and connected electric bicycles and related IT systems. The startup is building an ecosystem aiming to positively affect the way we ride, for commuting and leisure purposes.

To ensure a soft landing on the US market, phos announced a strategic partnership with Evalon to provide an easier and cheaper opportunity for merchants to accept cashless payments. Launching its Tap to Pay solution in the USA in November is the first step of the company’s plan to take over North America.

Milestones to remember

This year had one fundamental milestone for the local ecosystem, as Bulgaria is officially on the world's “unicorn map”. In March, business expense management company Payhawk announced the extension of its Series B funding round. With the fresh capital, the startup reached a valuation of $1B and deserved the title “the first Bulgarian unicorn”. Excluding these megarounds, local startups are leaders in attracting capital across the SEE region to further develop their operations and products.

Other deals that definitely should be highlighted throughout the year include Alcatraz AI’s $25M Series A round. This will help the company streamline its efforts to acquire new clients for its biometric authentication solution. LucidLink received $20M to help collaboration between different teams in a remote environment. We’ve also witnessed new investments in some of our portfolio companies such as Econic One, Rush, and many others.

As we are approaching the final days of 2022, we’re full of excitement and hope for 2023. Hoping to bring us all peace, love, and success! Bulgaria Innovation Hub thanks you all for the support and dedication to developing the local business and technology space and wishes you the warmest and happiest of winter holidays!

The possibility for Bulgaria Innovation Hub to achieve these milestones is achieved with the support of America for Bulgaria Foundation (ABF) - an independent, nonpartisan, and nonpolitical American grant-making foundation working in partnership with Bulgarians to strengthen the country’s private sector and related democratic institutions. For more information, please visit: https://us4bg.org/