Over the last decade, Central and Eastern Europe has quietly become one of the most promising regions for innovation and entrepreneurship in Europe. Countries like Poland, Romania, Slovakia, Hungary, Czech Republic, Bulgaria and the Baltics have all seen a rise in tech talent, startup formation and international interest. Yet despite these positive trends, the region still faces a fragmented and underdeveloped investment ecosystem.
While the raw potential is undeniable, access to funding remains a key bottleneck for many founders. The reasons are complex and go beyond capital availability. In this article, we take a closer look at what makes the CEE investment landscape unique, why it matters, and what challenges still need to be addressed.
Growing ambition, limited visibility
Startups in Central and Eastern Europe are no longer thinking locally. Many founders now launch companies with a global product mindset from day one. English is widely spoken among tech and business professionals, and access to global tools and networks has never been easier.
But even with this international orientation, visibility remains a major challenge. Startups in the region often lack exposure to international investors, particularly early-stage funds and angels from Western Europe or the United States. The region is still perceived by some as “emerging” or “less proven”, which creates a credibility gap even for high-quality teams.
The capital is there, but fragmented
Contrary to popular belief, there is capital available in CEE. Dozens of venture capital funds, public co-investment schemes, EU-backed instruments and active angel networks operate in the region. However, the ecosystem remains fragmented. Many funds focus narrowly on their home countries. Cross-border syndication is still rare. Founders have to spend considerable time navigating local differences, grant systems and investor preferences, which slows momentum.
In addition, the size of early-stage rounds in CEE is still relatively small compared to Western Europe or the US. This creates a problem for startups that need to scale fast and cannot wait for a long, step-by-step funding path.
Risk perception and conservatism
Another challenge in the CEE investment landscape is the culture of risk. Many institutional investors and even family offices in the region are still relatively conservative. Traditional sectors like real estate, energy or manufacturing tend to dominate portfolios. For many high-net-worth individuals, startup investment is seen as too risky or unfamiliar.
This conservative mindset affects not only capital flows but also how founders shape their pitches. Instead of focusing on long-term vision or breakthrough innovation, they often feel pressured to demonstrate short-term traction or overly detailed financial plans early in the journey. This sometimes creates a mismatch between what founders offer and what investors expect.
State support is a double-edged sword
In recent years, many CEE governments have introduced grants, accelerators and co-investment tools to support startups. These programs have helped thousands of companies get started and provided a first validation layer. However, they also come with bureaucracy, limited flexibility and sometimes misaligned incentives.
For example, some grant programs prioritize formalities over real-world traction. Others require complex reporting or matching contributions that many early-stage teams cannot afford. While these tools are helpful, they cannot replace a healthy and dynamic private investment culture.
The upside of the CEE market
Despite these challenges, the region holds significant opportunities for both founders and investors. The cost of building a startup is still lower than in Western hubs. Talent is abundant and increasingly experienced. Universities and technical schools across the region produce skilled engineers and developers every year.
At the same time, digital adoption is growing fast, especially in areas like fintech, healthtech and B2B software. These sectors have strong potential for scalable impact. Investors who are willing to look beyond the usual hotspots may find undervalued opportunities with strong fundamentals.
Why visibility tools like InvestCEE matter
One of the key issues in the CEE investment landscape is discovery. Good founders are building solid companies, but they often remain invisible to the right investors. Likewise, investors who are open to CEE opportunities may not know where to look or how to filter the noise.
This is where a curated platform like InvestCEE can make a difference. By showcasing selected startups from across the region, with a clean and consistent format, we aim to reduce friction on both sides. Founders get a chance to present their story with clarity. Investors can explore opportunities with confidence, knowing that every listing has been reviewed and structured.
We do not aim to replace traditional fundraising channels. Instead, we want to make the region more visible, more connected and more accessible.
Conclusion
The investment landscape in Central and Eastern Europe is evolving. There is more talent, more ambition and more capital than ever before. But structural challenges remain. Fragmentation, risk aversion and low visibility continue to slow progress. If we want to unlock the full potential of this region, we need more bridges between ideas and capital.
InvestCEE was built to be one of those bridges. Not the only one, but a valuable one.
If you are a founder building in CEE or an investor looking for high-potential projects, we hope you will join us on this journey.
