Croatia Startup Ecosystem in 2025: A Year of Resilience and Transformation

Posted On 09 January, 2025

Croatia, renowned for its picturesque coastlines and rich cultural heritage, is now carving a name for itself as an emerging hub of innovation and entrepreneurship in Southeast Europe. With a highly educated workforce, strategic location, and a growing focus on digital transformation, Croatia has made significant strides in building a robust startup ecosystem. The year 2024 proved pivotal, marked by record-breaking investments, technological advancements, and an increasing global presence of Croatian startups. As the country steps into 2025, the Croatian startup ecosystem is showcasing resilience, adaptability, and a determination to drive technological and economic growth.

Record-Breaking Funding in 2024

Croatian startups raised €800 million in 2024, a 50% increase compared to the previous year, reflecting the growing confidence of both local and international investors. Zagreb, the capital, remained the nucleus of innovation, but cities like Split, Rijeka, and Osijek also witnessed notable startup activity, especially in green tech, AI, and tourism tech.

Key sectors that drew significant funding included fintech, healthtech, AI, and tourism tech, collectively accounting for over 70% of the total investments. Early-stage funding saw a remarkable 45% increase, underscoring the growing support for new ventures. Notable funding rounds included €150 million for a green energy startup and €120 million for a tourism tech platform leveraging AI to enhance travel experiences.

Government programs like Croatia 2030 Innovation Strategy, HAMAG-BICRO (Croatian Agency for SMEs, Innovation and Investment), and EU-backed funding under Horizon Europe have played a crucial role in fostering the growth of the ecosystem.

Tourism Tech: Redefining Travel Experiences

Tourism remains a cornerstone of Croatia’s economy, and tourism tech startups raised €250 million in 2024. Startups in this sector are leveraging AI, virtual reality, and blockchain to create innovative solutions that enhance the travel experience while promoting sustainable tourism.

Notable companies like Rentlio, a cloud-based property management solution, and Zizoo, a platform for boat rentals, are driving innovation in this space. Government initiatives to integrate digital transformation into the tourism industry and partnerships with global travel companies have further bolstered the sector’s growth.

Green Tech: Driving Sustainability

Green tech emerged as one of Croatia’s most promising sectors, with startups raising €200 million in 2024. With abundant natural resources like wind and solar energy, Croatia is positioning itself as a leader in renewable energy and sustainable technologies in Southeast Europe.

Key players like Orqa, which develops solar-powered drones, and Green Energy Croatia, a provider of wind energy solutions, are driving sustainability initiatives. Government policies under the National Energy and Climate Plan 2030 and investments in energy storage and electric mobility have provided a robust framework for green tech startups to flourish.

Fintech: Empowering Financial Innovation

Croatia’s fintech sector raised €150 million in 2024, focusing on digital payments, blockchain technology, and financial inclusion for SMEs. The adoption of digital banking and mobile payment platforms has been growing steadily, creating opportunities for financial innovation.

Notable startups like Electrocoin, a cryptocurrency payment provider, and Rimac Financial Solutions, which focuses on fintech for the automotive sector, are shaping the landscape. Regulatory support from the Croatian National Bank and collaborations with regional fintech hubs have contributed to the sector’s growth.

Healthtech: Revolutionizing Healthcare Solutions

Healthtech startups in Croatia raised €100 million in 2024, focusing on telemedicine, digital health platforms, and biotech innovations. The country’s healthcare system and partnerships with leading institutions like the University of Zagreb have driven advancements in this sector.

Startups like Include, which develops solar-powered smart benches equipped with health monitoring features, and Mediatoolkit, an AI-driven health data analytics platform, are transforming healthcare delivery. The government’s investments in telemedicine infrastructure and digital health platforms have further supported the sector’s growth.

Artificial Intelligence: Accelerating Technological Advancements

AI startups in Croatia raised €100 million in 2024, with applications spanning logistics, customer service, and predictive analytics. Croatia’s academic institutions and growing tech community have played a pivotal role in driving AI innovation.

Key players such as Gideon Brothers, specializing in AI-powered robotics for warehousing, and Infobip, which integrates AI into cloud communication services, are leading the charge. The government’s AI Strategy 2030 and collaborations with global tech companies have further strengthened the ecosystem.

Digital Infrastructure and Smart Cities

Croatia made significant advancements in digital infrastructure in 2024, including the nationwide rollout of 5G and the expansion of high-speed broadband networks. These developments have enabled startups to innovate in IoT, cloud computing, and smart city solutions.

Zagreb and Rijeka are implementing smart city projects focused on sustainable urban development and digital transformation. Programs like Smart Croatia 2030 and investments in cybersecurity have positioned the country as a regional leader in digital innovation.

Global Collaborations and Market Expansion

Croatian startups expanded their global footprint in 2024, with over 50 companies entering international markets in Europe, North America, and Asia. Programs like Startup Croatia and partnerships through EUREKA and Horizon Europe have facilitated cross-border collaborations and funding opportunities.

Croatia’s strategic location as a gateway to the Balkans and its reputation for technological innovation have made it a preferred destination for global investors.

Mergers and Acquisitions (M&A): Strengthening the Ecosystem

M&A activity in Croatia reached new heights in 2024, with 15 deals valued at €250 million. Startups in tourism tech, fintech, and green tech were the primary targets for acquisitions by global corporations seeking innovative solutions.

A notable deal included the acquisition of a Croatian AI-driven logistics startup by a leading European technology firm, underscoring the country’s growing influence in emerging technologies. These transactions reflect the maturity and global competitiveness of Croatia’s startup ecosystem.

Employment and Talent Development

Croatian startups created over 10,000 new jobs in 2024, with strong demand for professionals in green tech, tourism tech, and fintech. Collaborations between startups and academic institutions like the University of Split have ensured a steady pipeline of skilled talent.

Government programs like the Digital Skills Croatia Initiative and investments in STEM education have attracted international talent while empowering local professionals to scale their ventures.

Challenges and Opportunities

Despite its growth, Croatia’s startup ecosystem faces challenges such as limited access to late-stage funding and brain drain. However, opportunities lie in leveraging its strategic location, fostering international partnerships, and focusing on emerging sectors like robotics, renewable energy, and digital healthcare.

The government’s continued emphasis on innovation, sustainability, and global outreach will be critical in addressing these challenges and sustaining growth in 2025.

Looking Ahead to 2025

As Croatia’s startup ecosystem advances into 2025, it is poised for further growth and innovation. Key focus areas include scaling green tech and tourism tech solutions, advancing AI applications, and strengthening international collaborations.

With its strong commitment to sustainability, digital transformation, and global outreach, Croatia is well-positioned to lead in sectors that define the future. Emerging industries like robotics, renewable energy, and AI-driven logistics are expected to drive the next wave of growth.

The Croatian startup ecosystem in 2025 exemplifies resilience, innovation, and transformation. By leveraging its strengths in sustainability, technology, and global collaboration, Croatia is shaping its future as a leader in Southeast Europe’s entrepreneurial landscape. Startups in Croatia are not only addressing today’s challenges but are also paving the way for a sustainable and prosperous future for the region and beyond.