Bulgaria emerges as Europe’s deep tech hub, shedding outsourcing image

AMSTERDAM, NETHERLANDS — Bulgaria is quietly transforming into one of Europe’s most dynamic tech ecosystems, leveraging its skilled workforce, competitive tax rates, and strategic initiatives to attract global investment. 

With homegrown unicorns emerging and women comprising nearly 29% of its tech workforce—double the European Union average—the country is shedding its outsourcing image to become a hub for deep tech innovation.

Competitive advantages fueling growth

Bulgaria’s 10% flat tax rate, cost efficiency, and deep technical talent pool have long made it a magnet for global firms like Oracle and Microsoft. 

According to StartupBlink’s 2024 Global Startup Ecosystem Index, the country’s ecosystem is now pivoting to homegrown innovation, with startups securing €264 million (US$ 300 million) in 2023, a fourfold increase from five years prior. 

Meanwhile, Payhawk became Bulgaria’s first unicorn in 2022, and AI or deep tech investments surpassed €1 billion (US$ 1.1 trillion) between 2018 and 2023, per The Recursive’s report.

Strategic rebranding through #BreakingGrounds

To combat its reputation as an outsourcing destination, Bulgaria launched #BreakingGrounds in 2023, a public-private initiative to showcase its tech potential globally. 

The program has already facilitated €16 million (US$18.1 million) in deals, with startups like Evrotrust gaining visibility at major events like Web Summit and VivaTech, as reported by organizers.

“CEE countries are stronger together,” says Teodor Georgiev, head of Storytelling Studio.

“When we present the region as a unified tech powerhouse, we attract greater investment, media attention, and corporate interest,” he added, noting plans to unite Bulgaria with Hungary, Czechia, and others under a regional tech banner. 

With European Union Startup Commissioner Ekaterina Zaharieva adding credibility, Bulgaria’s ecosystem is gaining recognition as a contender in Europe’s tech race.

While challenges remain, Bulgaria’s blend of talent, policy, and coordinated ecosystem-building positions it as an underdog worth watching. As #BreakingGrounds expands its reach in 2025, the country aims to prove its place among Europe’s innovation leaders.