Why global investors are flocking to the region
From Yahoo Finance: 2025-04-14 06:37:00
Investors are increasingly turning their focus to Central and Eastern Europe for AI investments, with over €850m raised by AI startups in 2023 and an additional €593m in the first eight months of 2024. Poland, Greece, and Croatia are leading the charge, attracting big rounds from well-known companies.
Poland led the region in fundraising in 2024, raising €171m alone, showcasing the area’s entrepreneurial spirit, technical prowess, and evolving digital infrastructure. CEE’s resilience in drawing capital despite global economic challenges highlights its reputation as an AI innovation hub.
CEE businesses are excelling in high-impact industries like biotech, healthcare, fintech, digital banking, industrial automation, manufacturing, and cybersecurity, with startups securing significant rounds of capital to drive innovation in these sectors.
The growth of vertical AI solutions tailored to specific industries is driving investment in CEE, with startups specializing in areas like AI-driven video production gaining global recognition for their highly specialized solutions.
Smart regulation, cost efficiency, appealing valuations, and government support are key factors making CEE an attractive destination for AI investments, offering a balance between affordability and innovation for investors seeking high-value opportunities.
The momentum behind CEE AI investments shows no signs of slowing down, with trends pointing towards growth in late-stage investments, the emergence of more AI unicorns, and strategic acquisitions and global expansion by promising CEE startups, positioning the region for sustained success.
CEE’s emergence as an AI investment hub is attributed to its tech talent, cost-effective operations, government support, and favorable legislation, making it a top region for AI innovation and finance. With careful planning and sustained investment, CEE has the potential to surpass established AI hubs in the next decade.