For every three startups in Serbia last year, one generated no revenue at all, while another recorded annual revenues of up to €50,000. Startups with revenues exceeding €1 million are practically at the level of a statistical margin of error, according to a new report.
Two key trends currently visible in this segment of the economy appear to be misaligned. First, the set of structural conditions has largely remained unchanged, and in some cases has even worsened, explains Tanja Kuzman, Director of the Digital Serbia Initiative.
“Most of the ecosystem continues to operate below significant monthly revenue thresholds, while the percentage of startups older than three years that remain under €1 million in annual revenue has sharply increased. A large number of founders continue to treat their startups as a secondary professional commitment. Employment outcomes have fallen short of stated plans in each of the past three consecutive years,” she noted in their sixth annual Startup Scanner report.
Secondly, several indicators point to a measurable shift in strategic orientation. “More startups are planning to raise external investment than in any previous edition. Startups are targeting larger funding rounds. The ecosystem has recorded a noticeable shift from standalone software components toward full platforms and products that are AI-native. Founders are more educated, possess more commercial experience, and are more internationally oriented than ever before. Taken in isolation, these indicators could suggest a positive future for the local ecosystem.”
However, their analysis revealed a consistent and measurable gap between stated intentions and the operational indicators needed to support them.
“This is clearly visible in revenue growth projections – 53% of startups expect their MRR (Monthly Recurring Revenue) to grow by more than 10% in 2026, while only 9.5% are currently achieving that rate. Fundraising goals are not aligned with revenue traction,” Kuzman concluded.
Interestingly, the typical domestic startup included in this year’s research has a team of two to three people, is registered within a year of the initial idea, operates in BioTech/MedTech, education, or fintech, and follows a B2B (business-to-business) model.
Startup finances remain thin
Revenue generation remains limited across much of the ecosystem, according to the “Startup Scanner” data. As many as 36.7% of startups reported no revenue at all in 2025, while an additional 27.9% generated up to €50,000 – meaning nearly two-thirds of the sample failed to achieve significant commercial success.
Among revenue-generating startups, the most common range is between €50,000 and €150,000 (12.9%). “Only 3.4% report annual revenues exceeding €1 million,” the report states.
The picture becomes even more complex when filtered by startup age: of the 69 startups operating for more than three years, one-fifth still report zero revenue, while the overwhelming majority generate less than €1 million annually. The publication emphasises that for these startups, a strategic priority should be building and monetising a strong user base in order to demonstrate the scalability and growth rate required by more mature funding sources such as venture capital funds.
This is further reflected in the level of business development, which remains far from impressive. The ecosystem is still largely focused on early-stage ventures.
More than three-quarters of companies are in the idea, pre-seed, MVP (minimum viable product), or seed stages, with the latter being the most common. The growth stage accounts for roughly one-fifth, while Series A and B together make up just over 4% of the sample.
“Changes compared to 2024 indicate continued pressure on the startup funnel. A decline in Series A and B representation, combined with concentration in MVP and seed stages, signals that the transition from early validation to later growth stages remains a difficult leap for many,” the report notes.
The authors highlight startups older than three years that are still in the idea or pre-seed phase – among them, fewer than 5% have yet to launch a finished product. “However, when looking at those still in the MVP phase, that figure rises to 17%. This indicates that a significant portion of the ecosystem is progressing at a pace that deviates from what is typically expected of high-growth ventures.”
Ambitious dreams
Last year, nearly 30% of startups received investment, representing modest growth compared to 2024. Among those that secured funding, a higher proportion found investors through referrals than the year before (68.2% in 2025 compared to 49.1% in 2024).
“This is a significant shift that highlights how dependent the funding environment is on accessible networks. It also suggests that our ecosystem is becoming more collaborative, with a stronger culture of referrals and mutual support. Formal fundraising channels, pitch competitions, and online platforms play a secondary role,” the authors state.
More than 70% of companies plan to raise investment this year, with around a quarter targeting rounds exceeding €1 million.
“In a context where 42.2% of startups have no MRR, 70.1% lack a valuation from a previous round, and only a small number of companies have demonstrated the revenue trajectory required by growth-stage investors, the gap between stated ambitions and investment readiness is substantial. This is not necessarily new, but it is a more pronounced trend than in previous years.”
To date, nearly 30% of startups have raised investment at some point, but among those, only one-fifth secured million-euro funding rounds.
Funding remains the top challenge for companies. However, the fact that most startups cite it as their main issue does not necessarily mean there is no money in the market-it more often reflects that companies have not yet reached the milestones required by investors. The second most common challenge is user and customer acquisition, followed by product development.
Non-technical experts enter the founding scene
After years of dominance by founders with engineering and technical backgrounds, this pattern is shifting. Now, 68% of startups in Serbia have at least one non-technical co-founder. This reflects a growing recognition that building a globally scalable startup requires more than product expertise, and that commercial, strategic, and sector-specific knowledge play an increasingly important role from the earliest stages.
Mature startups move west, Europe a near-universal goal
Just under 10% of startups are registered in the United States, around 6% in European Union countries, with a small number in Switzerland and New Zealand. According to the report, startups that relocate abroad tend to be more mature teams, driven by investor requirements, proximity to key markets, or more efficient administrative environments.
More than 80% of companies are still based in Serbia, with Belgrade maintaining a dominant position.
When it comes to target markets, the figures reveal limited global reach. The most commonly cited active market – where over 40% of startups generate sales – is Serbia. This is followed by the Western Balkans (22.4%), Europe (25.9%), and the United States (19.7%). Asia and the MENA region (Middle East and North Africa) are present but to a lesser extent.
Looking at primary markets (where startups have their largest user or customer base), Serbia again leads (25.9%), followed by the United States (13.6%) and Europe (12.2%).
Fewer than 30% of startups built their product for the global market from the outset and immediately pursued international sales – often cited as the key factor for successful internationalisation. “Finding a local partner for global expansion ranks second, followed by securing major international contracts and opening a physical presence abroad.”
This year, nearly 70% of startups plan to expand into new markets, with Europe being an almost universal target (98% of those planning internationalisation). The Western Balkans come next, followed by the United States (both at around 60%). The MENA region is included in the plans of about one-third of startups aiming for international expansion.
(Bloomberg Adria, 24.04.2026)