INTERVIEW | Bulgaria has good companies growing in spite of the environment

Dimitar Vassilev Ivanov is an Ambassador of the European Innovation Council (EIC) and a former member of the EIC Board. He is an entrepreneur, innovation strategist, and expert in innovation policy. He is the founder of Innowave Summit and Chairman of the Bulgarian Business Forums, with over 15 years of hands-on experience in technology, innovation, and the building and scaling of entrepreneurial and innovation ecosystems in Bulgaria and Central and Eastern Europe (CEE). His expertise also spans working with European institutions and strategic investment instruments.

He is an active participant in the formulation and implementation of European policies in the fields of innovation, entrepreneurship, and regional development.

Mr. Vassilev, the EIC now supports a portfolio of over 700 startups and 1,350 unique innovations. Where does Bulgaria stand on this “innovation map” and what is its potential for increasing its presence in the coming years?

Bulgaria is part of the European Innovation Council (EIC), but it is performing below its true potential. Today, we have 16 companies participating in EIC projects, €17.4 million in grant funding, and €36.5 million in approved equity funding through the EIC Accelerator. This means that Bulgaria now has over €53.9 million in total approved support under the EIC. Our most visible results are in the Accelerator, where we have 8 projects and the largest financial volume, but we also have 9 participations in Pathfinder and 1 in Transition. This is enough to say that Bulgaria is on the map of European innovation – but it is not enough to say that it occupies the place it deserves. And this is precisely the big issue: our potential is significantly greater than the results we have managed to achieve on a European scale so far.

I am convinced that Bulgaria has much greater potential than today’s figures show. Over the past two years, I have had the opportunity to meet many researchers, innovators, and companies from Bulgaria, and what I see is not a lack of quality, but a lack of a sufficiently robust system to translate that quality into European results.

Our country has enormous potential, but to fully unlock it, we must address several strategic issues – restructuring the national NCP network and increasing its actual effectiveness; stronger participation in Program Committees and earlier involvement in European processes; real synergies between national programs and European mechanisms such as the EIC, Horizon Europe, Widening, and the ERDF; and strategic use of instruments such as the EIC Plug-in Scheme and the Seal of Excellence. If we do these things consistently and on time, Bulgaria has every reason to "move into high gear" in European innovation.

According to Council data, for every euro invested through the EIC fund, over 3 euros in additional investment are attracted. How is this leverage achieved, and why is it particularly important for small countries like Bulgaria?

This leverage is achieved because the EIC does not act as a passive public donor, but as a strategic investor that reduces risk and thus unlocks private capital. The EIC Fund’s investment process actively seeks co-investors and connects with suitable investors from the Trusted Investors Network; the fund is structured specifically to attract private capital, not to replace it. That is why for every euro invested through the EIC Fund, over 3 euros of additional private capital is mobilized. This is particularly important for countries like Bulgaria because the local capital market is limited, and often the biggest barrier is not the idea itself, but the lack of a sufficiently strong initial investment signal to attract international funds.

The latest EIC report highlights that 80% of investments involve at least one foreign investor. How does the EIC actually help startups connect with international investors and markets – beyond just the funding itself?

The EIC helps not only with capital but by truly “opening doors.” This happens on several levels. First, through the EIC Fund itself and the Trusted Investors Network, where co-investors are identified and connected. Second, through Business Acceleration Services – programs such as VentureMatch, International Trade Fairs, Scaling Club, and Global Business Expansion, which provide access not only to funding but also to new markets, partners, and customers. And third, through greater international visibility and institutional trust: when a company has passed through the EIC, it serves as a strong hallmark of quality for the global investment market.

This is precisely why the EIC is important not only as a source of funding but as a mechanism for international positioning and accelerating growth. The EIC doesn’t just fund companies – it introduces them to an environment where they can be seen, vetted, and supported by international capital.

Companies supported by the EIC report an average 50% increase in employment and a 55% increase in revenue over a two-year period. What is needed to make these European statistics a reality in the Bulgarian business environment?

To make these European statistics a reality in the Bulgarian business climate, we must make growth possible, not heroic – we must build an environment where growth is easier, faster, and more predictable. This means better access to growth capital, a stronger link between science and business, more active expansion into international markets, fewer administrative barriers, and much clearer support for companies with the potential to scale. Bulgaria has good companies, but all too often they grow in spite of the environment, not because of it. When we create the conditions for innovations to be transformed more quickly into market presence, revenue, and new jobs, then these European figures will start to look normal here as well.

The Trusted Investors Network was recently established, comprising over 100 investors with assets exceeding €100 billion. What is it, and how can a Bulgarian startup practically benefit from this network?

The Trusted Investors Network is essentially a vetted network of international investors who are ready to co-invest alongside the EIC Fund in the strongest European deep-tech companies. It includes venture capital funds, corporate investment funds, national banks, and other major investors; today it brings together over 110 investors with more than €300 billion in assets under management.

For a Bulgarian startup, the practical value is very clear: this is not just a prestigious list, but fast-track access to serious international investors whom it would otherwise be much harder and slower to reach. In practice, the benefit comes when the company is well-positioned, has gone through the EIC process or is within its orbit, and can then be presented to the right investors at the right moment. In other words, the network doesn’t replace the startup’s own work, but it dramatically increases the chance that it will be seen by the people who can actually fund its next stage of growth.

Dronamics is perhaps the best-known Bulgarian example of successful EIC funding. Are there other Bulgarian companies or projects that have received or are in the process of applying for support, and in which sectors?

Yes – Dronamics is the most recognizable example, but it is not the only one. Among the Bulgarian companies that stand out in the EIC ecosystem are Transmetrics in logistics and mobility, Smart Farm Robotix in agrotechnology and robotics, and EnduroSat in space technology and satellite communications. We also have companies in health technologies, such as Check Point Care and Tamponeni Inovatsii, as well as in green solutions and new materials, where names like LAM’ON, Voltera Bulgaria, and Agrobioinstitute stand out. This is important because it shows that Bulgarian participation is not concentrated in just one niche but is now visible across several strategic sectors.

As for companies that are “in the process of applying,” I always approach that with caution. It is not appropriate to discuss unannounced applications publicly until the companies themselves confirm them. But what can be said with certainty is that Bulgaria already has visible examples in logistics, agrotechnology, space technology, communications, health technology, green solutions, and new materials, which means the foundation for future successful applications is solid.

What are the most common obstacles Bulgarian companies face when applying?

In my opinion, the most common obstacles are not a lack of talent or ideas, but rather the way projects are prepared and positioned for the EIC. First, the national NCP network is not yet operating with the efficiency required for this type of competitive instrument. National Contact Points must be the backbone of access to European funding, the bridge between potential and implementation, and the first voice to say, “Yes, this idea is worth the effort.” Second, although Bulgaria has secured resources for early-stage support, there is still no established mechanism or structure for pre-proposal checks; it is precisely there that the decision is often made as to whether an idea will be turned into a strong application. And last but not least, these are the three main mistakes most companies make:

• They do not articulate their technological breakthrough clearly enough;
• They do not correctly determine their TRL (Technology Readiness Level);
• They do not position the project convincingly enough as a solution with the potential for global technological leadership.

At the EIC, we are not simply looking for a good product; we are looking for deep technological innovation, technological risk, algorithmic or scientific novelty, and the potential for global technological leadership. In other words, it is not enough to have a well-described solution – you must clearly demonstrate a new type of technology and why it has the potential for global impact.

The report shows that medical technologies, quantum computing, AI, and semiconductors, as well as biotechnology, are among the leading sectors in terms of funding. In which of these does Bulgaria have a real chance to be a leader, rather than just a participant?

Our country has a chance to be a leader where it can turn strong engineering and science into rapidly deployable technologies. Our most realistic chance for a leadership position is in AI, especially in applied artificial intelligence for industry, logistics, mobility, agrotechnology, and specialized B2B solutions – we already have both strong engineers and established companies in these areas.

The next most promising area, in my view, is medical technology, where Bulgaria has the capacity to develop strong niches if it better connects scientific potential, clinical expertise, and product development. There is also an opportunity in biotechnology, but more in narrower, specialized fields rather than as a broad European leader. When it comes to quantum computing and semiconductors, I would be more cautious – in the coming years, it is more realistic for Bulgaria to be a strong player in specific niches rather than a leader on a European scale. In other words: our best chance lies in AI, followed by medical technologies and certain areas of biotechnology.

Cleantech and energy technologies also receive a significant share – around 700 million euros. Given the energy transition in Bulgaria, do you see specific opportunities here for local innovators?

Yes – and very specific ones at that. Bulgaria should not view the energy transition merely as a regulatory obligation or an infrastructure problem, but as an opportunity to create new technologies and new companies. Our country has potential in energy software, industrial energy efficiency, energy storage, smart grid solutions, agricultural and climate technology solutions, as well as in technologies that make the transition more affordable and manageable for businesses.

The good news is that clean and resource-efficient technologies are already among the strategic areas where the EIC and STEP are seeking to foster major European champions. Bulgaria has strong engineers, a solid industrial profile, and real local energy challenges to solve – this provides a strong foundation for innovations targeting regional and European markets. The real opportunity for us is not simply to participate in the energy transition, but to turn part of it into a new industrial and innovation powerhouse.

The report notes that too many European technology companies are being acquired or relocated outside Europe due to a lack of large-scale funding rounds. How is the EIC trying to reverse this trend, and to what extent is Bulgaria vulnerable to this risk?

The EIC is indeed trying to reverse this trend by addressing not only the early stages but also the larger problem – the lack of large-scale growth capital in Europe. This is being done on several fronts: through the EIC Fund with equity participation, follow-on financing, and the search for co-investors; through STEP Scale Up, which was created specifically to support larger funding rounds for strategic technologies; and through the new Scaleup Europe Fund, focused on late-stage companies with the potential to remain and grow in Europe. In other words, the EIC is trying not just to foster innovation, but to help the strongest companies avoid being forced to seek their next home outside of Europe.

As for Bulgaria – yes, we are also vulnerable to this risk. Not because we lack good companies, but because we are a small market with limited access to large funding rounds for growth. Therefore, if a Bulgarian deep-tech company fails to secure European or international capital in time, it can very easily face a choice between an early sale, relocating its operations, or slowing down its growth. This is precisely where the EIC’s role is strategic – to ensure that more of these companies can scale up in Europe rather than leaving it to survive.

As part of the EIC, what is your personal priority for the next 12 months with regard to Bulgaria?

Just as during my term on the EIC Board over the past two years, and now as EIC Ambassador, my focus is on the so-called widening countries, including Bulgaria, and more specifically – ensuring equal access to funding opportunities, the creation and implementation of innovations, access to networks, and growth opportunities within the European innovation ecosystem. For me, the widening countries are not on the periphery of European innovation, but one of the largest untapped reserves of scientific, entrepreneurial, and industrial potential in Europe. That is why I am working to ensure they are more clearly integrated into the implementation of the EU’s new startup and scaleup strategy, to strengthen support for them through instruments such as the EIC Pre-Accelerator, to develop stronger synergies between national and European funding instruments, and to reduce fragmentation for companies across the EU.

And specifically for Bulgaria, my personal priority is crystal clear: more and stronger Bulgarian companies need to reach the EIC with a real chance of success. Not just more applications, but better applications – better prepared, better positioned, and closer to the European standard for deep-tech and scale-up potential. This means a more effective national NCP network, a functioning mechanism for pre-proposal checks, more active participation in Program Committees, more strategic use of tools such as the EIC Plug-in Scheme and the Seal of Excellence, and a stronger connection between European experts and our institutions. For me, the goal is not for Bulgaria to have a few more isolated successes, but to start producing such successes more systematically. My main priority is for Bulgaria to transition from a mere presence in the EIC to real competitiveness.

Translated with DeepL.