More growth opportunities for Bulgarian startups as BIH achieves first big milestones in its fundraising efforts
Less than a decade ago, launching a startup in Bulgaria used to be a very sporadic activity, local venture capital was missing, entrepreneurial know-how and support were quite limited. The local innovation community has made significant progress since then - in 2021, we can see numerous young tech companies on a high-growth trajectory, a decent amount of early-stage VC funding, and an increasing number of associations, accelerators, coworking spaces, and other players trying to push the ecosystem to the next level. These factors, combined with the country’s tech talent and cost-effectiveness, put Bulgaria in a promising position to incubate many more strong startups in the years to come.
That said, there are very few examples of young Bulgarian ventures that have managed to successfully scale their businesses. Lack of entrepreneurial tradition and mindset for thinking globally from day one do play a role in that state of affairs, so does the still difficult access to big foreign markets such as the US and the undeveloped expertise in international sales and marketing.
Bulgaria Innovation Hub (BIH) plays a major role in this journey. For the past two years, the non-profit organization has been working on creating a two-way bridge between Bulgaria and Silicon Valley and helping local entrepreneurs gain critical knowledge, network access, and expertise to launch their companies overseas.
Now, with support from the startup and VC community and The America for Bulgaria Foundation, BIH is setting ambitious goals to scale its impact even further.
From bootstrapped idea to impact expansion
In the past 18 months, BIH has helped 28 companies, indirectly contributing towards the creation of 125+ jobs, and helping portfolio startups raise over $7.25M. The organization activated the diaspora and leveraged their energy and desire to get involved and give back in a meaningful way. In the process, BIH gained over 100 supporters and ambassadors and added more than 50 mentors who are willing to volunteer their time and resources to help Bulgarian entrepreneurs succeed.
To scale this impact, BIH recently raised a total of $725,000 in funding to expand its operations. Out of that, $400K comes as a grant from The America for Bulgaria Foundation, with a clause that any future external funding from other sources - foundations, individuals, or corporate donors - will be doubled by the foundation. The remaining $325K comes from program revenue and startup ecosystem partners in Bulgaria.
“Like most of the startups, we started as a bootstrapped idea and later gained the support of community and ecosystem partners. Our ambitious goal is to create a positive economic and social impact in Bulgaria by creating global leaders who solve major problems, create jobs and build sustainable communities. Fundraising is the lifeblood for every NGO, and as such we need to continue expanding our footprint and gain new public support from the community,” shares Pavlina Yanakieva, director of Bulgaria Innovation Hub.
There is an ongoing campaign on Global Giving, which has also achieved an important first milestone, passing the $5K threshold meaning BIH is now an official partner of the GG accelerator.
The funds will be used for operational expenses, expansion to other global locations such as New York City, Boston, or London, and the growth of BIH’s network of mentors and ambassadors. In addition, the team strives to develop Bulgaria’s brand recognition in Silicon Valley and beyond.
"I support Bulgaria Innovation Hub (BIH) because I became acquainted with Bulgaria in 1990 when I visited the country with the United Nations Development Program, with its leader, Bill Draper. This led to other visits to advise the government on entrepreneurship and to make some Bulgarian friends. When I first heard about BIH through Pavlina Yanakieva, many years later, I thought it was a good idea, a continuation of the work I began in 1990 and good for both countries," says legendary US investor Pitch Johnson.
First step to scale: the value for Bulgarian startups
The benefits for Bulgarian startups from the BIH equity-free go-to-market acceleration program include access to mentor and advisor networks and introduction to top-tier investors from the US VC ecosystem. Founders are also connected to potential customers, while also receiving legal and logistics support during the course of the 3-week long program. The whole experience results in a better understanding of how Bulgarian founders can navigate the Silicon Valley cultural dynamics .
Participating startups also receive support from the local diaspora entrepreneurs and investors (e.g. Boryana Straubel, Bogomil Balkansky, and Villi Iltchev), as well as a vast amount of resources needed for the preparation of an adequate business plan that meets the criteria of US investors.
“The most impactful change was revising our sales playbook and the product demos to improve sales,” shares Miroslav Miroslavov, Founder & CEO of OfficeRnD, one of the founders who joined BIH’s first cohort back in 2019.
Multiplying the chance for success - the value for Bulgarian VCs
For Bulgarian VCs, many of which are focusing on the early stages, BIH’s programs represent an opportunity for the international expansion of their portfolio companies.
Investors also receive the opportunity to be introduced to the local market deal flow and become part of the US partner network, while obtaining office and logistics assistance and are promoted to the Bulgarian diaspora and the partner network of BIH.
Towards the global entrepreneurial mindset
While BIH’s US market entry program provides a good amount of practical know-how, the ultimate goal is for more Bulgarian founders to start thinking big and globally from day 1 and to know that there is a helping hand on the other side. In order for Bulgaria to become a global innovation hub, first, the local entrepreneurs need to believe it’s possible and do their part to give back and pay it forward to the next generation of founders. It’s important we cultivate this mindset of reciprocity as that’s the only way to sustain the positive change.