Greece’s startup ecosystem is experiencing unprecedented growth, with a record number of new businesses launched in 2024. As Prime Minister Kyriakos Mitsotakis declared this year a milestone for business, it’s worth examining what has driven this surge and what other economies can learn from Greece’s approach.
A thriving startup landscape
According to data from the General Commercial Register and the Union of Hellenic Chambers, 63,000 new businesses were founded in Greece in 2024—an 11% increase from the 58,000 registered in 2023. This momentum has propelled the country’s startup ecosystem to a valuation of up to $8.2 billion, solidifying Greece as a leading hub for venture funding in Southeastern Europe.
Comparing recent trends, the number of new startups in 2020 stood at 42,000. This means Greece has seen a remarkable 50% increase in just four years. Business activity is not only recovering to pre-crisis levels but also showing sustained expansion. Unlike some European markets, such as France, which recorded a decline in new business formations, Greece is defying expectations and demonstrating robust growth.
The positive trend extends beyond new business creation. The number of companies shutting down-dropped by 11% last year, indicating that Greece is not just fostering startups but also supporting their longevity and success.
Attracting global investment
One of the driving forces behind Greece’s startup success is its ability to attract foreign investment. In 2024 alone, 156 foreign investors participated in Greek funding rounds. The government has actively promoted foreign direct investment (FDI) through incentives such as golden visas and tax breaks, creating a business-friendly environment. Notably, 36% of foreign investors in Greece last year were based in the US, highlighting the country’s growing global appeal.
The government’s ‘Elevate Greece’ initiative has played a crucial role in this transformation. By offering targeted support and international visibility to startups, the program has fostered an innovation-friendly ecosystem. Entrepreneurs and investors now see Greece as a promising market rather than a risky bet, marking a significant shift in the country’s financial standing.
Tech and venture capital on the rise
Venture capital funding in Greece saw a 32% increase in 2024, reaching $400 million. A significant portion—33%—was directed toward AI-driven startups, underscoring the technology sector’s central role in the country’s economic strategy. Major international investors have taken notice, with Sequoia backing Reflection AI, Andreessen Horowitz investing in Kaedim and Pantheon AI, and Alibaba funding Connectly.
Beyond startup funding, Greece also witnessed one of Europe’s largest tech acquisitions in 2024. US-based Cadence acquired Greek technology firm BETA CAE for $1.2 billion, reinforcing the country’s growing reputation as a hub for high-value technology ventures. This deal, along with the government’s push for digital transformation, signals investor confidence in Greece’s startup sector despite global economic uncertainties.
Challenges and the road ahead
While Greece’s startup ecosystem is flourishing, challenges remain. Early-stage funding continues to be a hurdle, and regulatory barriers can slow down business growth. Strengthening inclusivity and diversity within the startup landscape could further unlock untapped potential and drive sustainable development.
However, the country’s political and economic stability—bolstered by two consecutive terms of the New Democracy government—has transformed its economic outlook. International interest and capital inflows into Greek startups indicate that the ecosystem is maturing, with over $1 billion in new capital raised annually. Just a decade ago, such success seemed improbable, but today, Greece is firmly on the global map for entrepreneurship.
Looking ahead, Greece’s economic growth prospects remain strong. Analysts project a 2.3% increase in GDP for 2025, driven by exports, investments, and private consumption. The digital economy is expected to play a crucial role in this expansion, further cementing Greece’s position as a dynamic player in Europe’s startup landscape.
A model for growth?
For investors, stability, standardisation, and regulatory compliance are key factors when choosing where to allocate funds. Greece has demonstrated its ability to meet these criteria, creating a favourable business environment not just within its borders but across the broader region. By maintaining momentum and addressing existing challenges, the country could unlock even greater opportunities for entrepreneurs and investors alike.
As Greece continues to establish itself as a thriving startup hub, its approach serves as a case study for other nations looking to foster innovation and economic resilience in an evolving global landscape.
Read the orginal article: https://www.eu-startups.com/2025/02/greeces-startup-boom-what-can-we-learn-from-its-supportive-policies-sponsored/
