As 2024 comes to a close, it is a good time to reflect on the events and trends that have shaped both the global and Serbian startup ecosystems this year. While challenges like the lack of larger investments still persist, this year has seen significant progress, particularly in terms of global visibility. Below, we are going to highlight the key moments, results, and trends that defined the year.
Before we look back at the key events of this ongoing year, let's first recall the expectations with which we entered 2024. Following global trends, there was an anticipation that 2024 would bring a recovery to the investment market, but with investors remaining cautious, particularly toward early-stage startups. The continued dominance of artificial intelligence was also a major focus, given its growing significance and integration across various industries. Overall, it was expected that the Serbian startup ecosystem would keep growing, both in terms of the number of startups and the intensity of activities at the regional and global levels. Now, let’s explore how expectations and reality have aligned over the past twelve months.
The global startup ecosystem in 2024 was dynamic, with numerous companies making a significant impact on the market. In comparison, only a few startups in Serbia achieved notable growth, while the overall number of early-stage startups continued to rise. According to the "Startup Scanner" report, the domestic innovation ecosystem has seen steady growth, with over 300 new startups launched in the past two years. However, this rapid growth has led to a decrease in the ecosystem's maturity, highlighting the need to improve existing support mechanisms and create new ones.
We have divided the evaluation of the startup ecosystem from our perspective into several segments for a more straightforward yet comprehensive analysis, looking at the following areas:
- Trends in the global startup scene
- The startup ecosystem in Serbia
- Challenges and lessons
- Global visibility
Let’s begin by taking a look at the global startup scene.
Trends in the Global Startup Scene
This year has brought significant changes and challenges for the global startup ecosystem, with a noticeable decline in overall investments compared to previous years. While the European startup ecosystem secured investments worth $39.5 billion, down from $42.8 billion in 2023 and $62.2 billion in 2022, several industries continued to lead the way.
Countries like the US, England, Israel, Canada, and Singapore continue to lead the global startup scene, setting trends that are expanding to other regions, including Europe, where Sweden, Germany, France, and the Netherlands are experiencing notable growth. These nations remain innovation hubs, producing startups that are reshaping markets and industries worldwide. Among the standout industries were HealthTech, FinTech, GreenTech, EduTech, and E-commerce, as well as AI and blockchain startups, which have attracted substantial investments and have seen the highest growth.
One of the biggest global trends this year has been the surge in investments in AI startups, which have raised over $24 billion. The advancement of generative AI, neuro-linguistic programming, and machine learning has sparked an investment frenzy, with standout examples such as the American xAI and Xiaura Therapeutics. Elon Musk's company, xAI, secured its second massive funding round this year, raising $6 billion. Xiaura Therapeutics, a San Francisco-based startup focused on AI-driven drug discovery, secured $1 billion in Series A funding. Yandex's spinout, the Dutch company Nebius, founded this year and developing an AI Cloud platform, raised $667 million this month. Similarly, large investments were secured by French AI startups Mistral and Poolide AI.
While AI trends dominate in the "new world," Europe has taken the lead this year as a frontrunner in responsible innovation, emphasizing the importance of sustainability and technological solutions that bring long-term benefits. Venture capital funds have increasingly recognized the potential of responsible innovations, showing a willingness to invest in startups focused on creating positive societal and environmental impact. Sustainable initiatives, now at the forefront of many European countries, have been driving the development of technological solutions that reduce carbon footprints, optimize resource use, and improve quality of life. One of the more notable GreenTech investments was in the French startup Vektor, which aims to accelerate the production of low-carbon footprint batteries – the startup raised over 1.3 billion euros. Overall, GreenTech startups have secured more than 5 billion euros.
HealthTech startups have demonstrated significant potential, especially in the fields of telemedicine, diagnostics, and wearable devices. In the first quarter of this year alone, HealthTech startups secured over 11 billion euros, with prominent names like the American companies Devoted Health and Radiology Partners raising substantial funds in funding rounds.
Meanwhile, the FinTech sector has kept its momentum, with a strong focus on digital banking and payment solutions, attracting €15 billion in investments across North and Latin America. Beyond FinTech, the E-commerce industry remains a key focus, with a growing emphasis on logistics, omnichannel experiences, and enhancing the customer journey. Investment has surged into EdTech and AgriTech as well, both seeing significant growth. At the same time, blockchain and Web3 startups have gained traction, particularly those using blockchain to advance financial solutions.
Significant investments have also been made in startups within the Travel & Hospitality industry. It took a few years for the sector to fully recover after the pandemic, but the current travel and hospitality boom has driven increased investment in startups at the seed and early-stage rounds. Amsterdam-based Mews raised $110 million in March, while Israeli startup Guesty announced a $130 million investment in its Series F round in April.
The Serbian Startup Ecosystem – From Our Perspective
Earlier in the text, we highlighted some of the most successful global startups of the year, along with industry trends and emerging technologies. Now, it's time to compare the global landscape with developments on the local scene.
There is no doubt that the Serbian startup ecosystem has continued to grow this year, but we still lack the standout success stories we saw a few years ago, such as the sale of Nordeus or the large investments that Tenderly secured three years ago. However, despite the absence of such examples, there is still much to be proud of.
Throughout 2024, similar to previous years, Serbian startups attracted investments that were significant on an individual level, but cumulatively, they remain insufficient compared to other more developed ecosystems. These investments have enabled the development of ideas, team expansion, and the internationalization of many products. However, the level of investment activity was considerably lower compared to previous years, especially when looking back at 2021.
Up next, we will highlight some of the most attention-grabbing startups
One notable example comes from the baby skincare industry. The Serbian startup Baby Boo secured an investment of €1.1 million. This funding enabled them not only to strengthen their presence in the European market but also to successfully enter the Chinese market as a registered import brand.
In the FinTech sector, Leanpay, a consumer financing company, raised an impressive €10 million in its Series B funding round. The round was led by BlackPeak Capital and Catalist Romania Fund II, with additional support from South Central Ventures and Hungary’s Lead Ventures.
The construction industry received a significant boost with investments in the startup Lupa Technology. Backed by South Central Ventures and the Innovation Fund, which contributed an additional €300,000 through a co-investment grant, Lupa Technology is developing a platform that facilitates informed decision-making in construction projects around the world.
The tourism industry has also made strides with the startup OTA Sync, which is developing cloud-based solutions for managing hotels and apartments. In its seed funding round, led by Silicon Garden, Presto Ventures, and Katapult Accelerator, the company secured the resources to expand into the regional and Spanish markets, as well as enhance its platform with new automated features.
In the field of artificial intelligence, the startup Reputeo has made a notable impact. Focused on protecting intellectual property and corporate reputation, Reputeo attracted investors from the EU and successfully secured clients in both the US and Europe. Their innovative solutions enable companies to effectively manage their intellectual assets, boosting their reputation and strengthening their market position.
Finally, Collabwriting, which was highlighted last year, continues to expand. After securing €880,000 at the How To Web conference last year, the startup has now secured further funding from VC investors.
As shown, the investment scene here has been largely dominated by startups in artificial intelligence, FinTech, and the hospitality sector, which have attracted the largest funding.
Along with attracting investments, which are the main growth drivers for startups, there have also been changes in the structure of support programs. When comparing the local ecosystem to the most developed ones in Europe, such as London, Berlin, and Amsterdam, it's clear that there are still not many support programs available, and they lack diversity. However, when looking at Serbia in the context of the region, the country ranks quite high, especially in recent years, with the largest number of programs emerging.
We have seen a trend of increasing financial resources being made available as part of support models, with some programs emerging and others disappearing over the past twelve months. Also, some programs supported their latest cohorts of startups in 2024, and the future of these programs is unknown.
It is certainly encouraging to see large companies taking on an increasingly active role in the startup ecosystem, positioning themselves as relevant partners not only for startups but also for organizations that support them.
We also can’t ignore the fact that investment activity—along with the focus of support programs and founders—has increasingly shifted toward the development and application of artificial intelligence in the Serbian startup ecosystem. This trend reflects the growing recognition of AI technologies as a key driver of innovation and growth, as well as a rising interest in supporting startups working on advanced AI solutions.
Challenges Startups Have Encountered
This year, Serbian startups have grappled with a number of challenges that have had a major impact on their growth and long-term sustainability. Securing funding, attracting the right talent, scaling their operations, and expanding into new markets have all been crucial to their ability to navigate global uncertainty and stay competitive.
Access to capital remains one of the biggest challenges for startups, especially in a year when global economic factors have created market uncertainty and led investors to take a more cautious approach. Startups have had to work even harder to prove the sustainability of their business models and market potential, while competition for limited funding has become increasingly fierce.
Attracting and retaining talent has been a major challenge for startups, as they compete with large corporations offering stability, high salaries, and generous benefits. To stand out, many startups provide equity, giving employees a stake in the company's long-term success. They are also increasingly turning to volunteer work as a way to engage potential talent, offering hands-on experience and a chance to prove themselves in a dynamic environment. Flexible work arrangements and greater autonomy further enhance startups' appeal, especially for those looking for exciting challenges and a better work-life balance.
Scaling a business and entering new markets has been especially challenging amid global economic and logistical disruptions. These hurdles have made it harder for startups to build reliable supply chains, while competition in new markets has only intensified. Reaching new customers has become more difficult, and regulatory challenges in industries like FinTech, health tech, and energy efficiency have further slowed innovation. The added costs of adapting to new legal frameworks have made scaling even more complex.
To overcome these challenges, startups need to be more flexible, agile, and ready to adapt to the fast-paced market. Equally important is maintaining strong relationships with mentors, partners, and investors who can provide crucial support. These connections have proven essential for ensuring sustainability and driving further growth in an increasingly complex market landscape.
Global Visibility: Big Steps on the Big Stage
Let's start by asking – why global visibility even matters for Serbian startups.
It is well known that local startups face the limitations of the domestic market and often have to seek opportunities beyond the country's borders from the very beginning. With only 6.4 million people in Serbia and around 15 million in the region, it is clear that a startup's success often depends on entering larger and more developed markets. International visibility plays a key role in this process, offering numerous benefits for business growth and scaling.
This year, dozens of Serbian startups had the chance to take part in one of the world’s biggest tech events – Web Summit in Lisbon. Their participation was organized under the “Serbian Island” (‘’srpsko ostrvo’’) initiative, giving them global exposure, opportunities to connect with international partners and investors, and a platform to showcase their solutions on a global stage. In addition to Web Summit, Serbian startups made a strong presence at GITEX in Dubai—one of the leading tech events in the Middle East—as well as Slush in Helsinki, a premier European conference dedicated to startups and innovation. These events offered invaluable opportunities to learn, build connections in global markets, and stay ahead of the latest trends and technologies.
Attending these international events gives startups access to essential resources like funding, tech expertise, talent, and strategic partnerships. In fact, the face-to-face connections made at these events are often what lead to securing important business deals.
Many programs have been designed to support startups by exposing them to international markets, from Europe and the Americas to countries in East Asia. For example, at ICT Hub, in partnership with the “Digital Serbia” Initiative and with support from the Japan International Cooperation Agency, we launched the NINJA accelerator in 2024, which helps five local startups scale their operations in distant Asian markets.
For the Serbian startup ecosystem to keep growing and evolving, it’s crucial that the trend of global visibility carries on into the next year. Consistent promotion and presence in global markets not only boost the competitiveness of our startups but also establish Serbia as a key player in the global tech scene. Only through initiatives like these can Serbian startups reach their full potential and make their mark in the global ecosystem.
What can we expect from the Serbian startup ecosystem in the upcoming year?
As we’ve mentioned, the Serbian startup ecosystem is growing but still in the early stages of maturity. This leaves plenty of room for optimism in the year ahead, as there is still vast potential to be unlocked. Based on past achievements and global tech trends, expectations for 2025 are high, and we’ll outline them across several key areas:
- Growth in the number of new startups
The steady rise in new startups each year reflects a growing interest in entrepreneurship and innovation. Fresh teams and ideas inject energy and diversity into the ecosystem, playing a crucial role in its long-term growth.
- Significant achievements in scaling startups
Startups that have moved beyond the initial stages of development have the potential to achieve significant milestones and accelerate their growth in the coming year. Their success can bring visibility not only to them but to the entire ecosystem, creating new opportunities for investment, partnerships, and talent. The achievements of these companies can also inspire the broader community to pursue innovative technological solutions.
- Enhancement of startup support programs
Support through various programs, incubators, accelerators, and mentorship remains a key factor in the development of startups. We expect not only the continuation of these activities but also their enhancement, aligning them with global standards and addressing the specific needs of the local startup community.
- The increasing involvement of corporations
Large corporations are becoming an increasingly significant part of the startup ecosystem, providing opportunities for strategic partnerships. We expect this trend to persist, as corporations can drive the development of innovative technologies by collaborating with startups, while startups benefit from the resources, markets, and expertise that corporations offer. This synergy has the potential to further accelerate the growth of startups.
- Keeping track of global trends
The tech landscape is evolving at a rapid pace, and adapting to global trends is becoming essential for staying competitive. We anticipate that the domestic economy, particularly the startup ecosystem, will continue to embrace innovations like artificial intelligence, automation, and sustainable solutions, boosting its global competitiveness. Meanwhile, Europe’s emphasis on sustainability and decarbonization highlights the importance of responsible, long-term thinking. Startups that can successfully combine technological innovation with sustainable business models will not only meet current market demands but also play a key role in shaping the future of the global economy.
- In-depth Application of Artificial Intelligence
With the global AI market expected to grow by 38% in the coming year, we anticipate that one of the key trends will be the continued integration of artificial intelligence across various sectors of society. AI holds the potential to improve a wide range of processes, from healthcare and education to industry and public administration.
So, what's the conclusion?
As technology evolves at an accelerating pace and market demands continue to rise, startups face a growing challenge: they will have less time to identify emerging trends and position themselves for long-term success.
In this overview, we have reflected on the past year to highlight the key technological and market trends shaping the current business landscape of both the global and local startup ecosystems. It’s clear that recognizing the gaps is crucial so that everyone involved in the Serbian startup ecosystem can contribute to its growth, providing support through new initiatives and upcoming programs.
Authors: Filip Ilić and Mia Kotarac
