The last couple of years haven’t been easy for startups in central and eastern Europe (CEE) — a region that’s traditionally struggled to attract VC funding, an issue that’s become more acute as a result of the global economic downturn.
In 2022, tech funding in the region hit record highs — with startups raising $2.5bn. But the months that followed proved to be more challenging: in 2023, CEE startups raised $777m, and this year they’re on track to bring in a similar total.
But, against the odds, some CEE startups have still grown their teams at an impressive rate over the past 12 months. Based on data from Dealroom, Sifted has picked 12 startups from the region — Poland, Slovakia, the Czech Republic, Hungary, Bulgaria, Romania, Slovenia and Croatia — whose teams have expanded the most in the last year.
The list only includes startups that have raised more than $15m in total and have more than 10 employees. Startups from the Baltics haven’t been included — if you’re interested in those, check our list of fastest-growing teams in Lithuania, Latvia and Estonia.
Asura Technologies
HQ: Budapest
Founded: 2017
Headcount growth over the last 12 months: 73% to 116 employees
Asura Technologies develops AI-based video analytics and automatic license plate recognition software for parking, security, tolling and other traffic systems. It’s raised $32m to date, most recently a $10m round and a $7m convertible loan from GB & Partners in 2022, a Hungarian private equity firm, according to Dealroom.
FlowX
HQ: Bucharest
Founded: 2020
Headcount growth over the last 12 months: 71% to 106 employees
FlowX.ai is a solution that allows large companies, such as banks or big consultancies, to quickly integrate all their existing systems on one platform and build modern digital products on top of them. The startup says it’s cheaper and much quicker than traditional digitisation processes, cutting timelines from months to weeks.
In 2023, the startup raised a $35m Series A led by London-based VC firm Dawn Capital.
NAKA
HQ: Ljubljana
Founded: 2017
Headcount growth over the last 12 months: 62% to 86 employees
NAKA is a fintech that offers a payment system that combines various methods, including crypto, for businesses, so they can manage transactions efficiently and securely. It’s raised $32.5m to date, according to Dealroom — most recently from crypto exchange Bitfinex and Tether, a cryptocurrency.
EnduroSat
HQ: Sofia
Founded: 2015
Headcount growth over the last 12 months: 44% to 164 employees
Endurosat produces modular nano-satellites. The company builds, deploys and operates a constellation of satellites which can be updated continuously while in space and whose data can be streamed through a cloud platform.
The company has raised $25m to date, according to Dealroom. In 2023, it raised a $10m Series A led by Serbia’s VC firm CEECAT Capital.
Fresh Inset
HQ: Toruń, Poland
Founded: 2018
Headcount growth over the last 12 months: 36% to 19 employees
Fresh Inset develops solutions for extending the post-harvest shelf-life of fruits, vegetables and flowers to reduce food waste and increase farmers’ profits. In April, the startup raised a 22m złoty (€5.1m) Series B from investors such as Poland’s Montis Capital and Szejk Capital and Luxembourg’s 545 Sarl.
Contec
HQ: Warsaw
Founded: 2017
Headcount growth over the last 12 months: 32% to 50 employees
Contec produces sustainable raw materials by upcycling end-of-life tires. In 2023, the company raised a $15m financing round, led by Warsaw Equity Group and Vinci, with the participation of Pruszyński, Polish manufacturer of steel roofing and facades.
Digitoo
HQ: Prague
Founded: 2019
Headcount growth over the last 12 months: 30% to 35 employees
Digitoo automates manual book keeping processes — it creates software solutions for digitising accounting processes. Its technology can automatically read received invoices, extract data from them, and transfer them directly into any accounting software.
Most recently, in 2023, the startup raised $2.3m from Czech Reflex Capital, on top of the previous $12.5m seed round in 2021, led by other Czech VC firms such as KAYA and Nation 1.
Enso
HQ: Cracow, Poland
Founded: 2015
Headcount growth over the last 12 months: 27% to 28 employees
Enso is a no-code platform that automates companies’ data-driven processes. It develops a visual programming toolkit which helps users build data workflows, dashboards and apps by analysing historical and live data.
In 2022, the startup raised a $16.5m seed round from investors such as California-based Y Combinator, SignalFire and Khosla Ventures, as well as Hungary’s Day One Ventures and Poland’s Innovation Nest.
Fuergy
HQ: Bratislava
Founded: 2017
Headcount growth over the last 12 months: 25% to 35 employees
Fuergy develops software for energy optimisation and its own battery storage systems. It’s designed to facilitate the integration of renewable energy sources while ensuring reliable, stable and cheaper electricity supplies.
In 2023, the company raised €16m from Pro Partners Holding, a Slovak private equity firm that focuses on later stage tech investments.
Verne
HQ: Zagreb
Founded: 2019
Headcount growth over the last 12 months: 23% to 281 employees
Verne, also known as Project 3 Mobility, is developing a system for urban transportation that includes autonomous electric vehicles — robotaxis — and the technology around them: an app, and a physical hub for charging, cleaning and maintenance. The company is a corporate spinout of the Croatian electric vehicle maker Rimac Group. Its fully autonomous two-seat electric vehicle, called Verne, is expected to be operational by 2026.
In 2023, the company received a €180m grant from the European Commission; this year, it raised a €100m Series A from Rimac Automobili, Korean carmaker Kia, Saudi TASARU mobility investment and others.
Better Stack
HQ: Prague
Founded: 2021
Headcount growth over the last 12 months: 21% to 29 employees
Better Stack is an observability tool which alerts engineering teams when a website goes down. The platform combines monitoring, logging, and incident management into a single dashboard.
Earlier this year the startup raised $10m as part of a tranche led by KAYA, a Czech VC, with participation from angel investors including Box CEO Aaron Levie. This money comes on top of a 2022 seed round when the company raised $18.6m from VCs like Sweden’s Creandum and Czech Credo Ventures.
Neuron Soundware
HQ: Prague
Founded: 2016
Headcount growth over the last 12 months: 20% to 18 employees
Neuron Soundware is developing machine diagnostics and predictive maintenance. Its AI tool recognises sound patterns in real time, providing insights into how mechanical systems operate, monitoring acoustics, temperature, pressure and other physical parameters. The technology can predict mechanical failures and ensure optimal performance.
The company has raised $20.1m to date in grants and equity, according to Dealroom, including with backing from Czech Inven Capital and Hungary’s Lead Ventures, and the grants from the European Innovation Council.
Read the orginal article: https://sifted.eu/articles/fastest-growing-cee-startups/
