Why Invest in Moldovan Startups?
Moldova is gradually becoming a hub for startups and investors. With a population of 2.45 million and a GDP of $45.02 billion, Moldova's growth in the tech startup ecosystem is gaining attention. Moldova's GDP has increased at an average annual rate of 7.2% over the past three years, reaching $16.84 billion in 2024, with a peak increase of 18% in 2021, according to World Bank data. The ICT sector, which contributes approximately 6% to the GDP, and has seen its share more than triple since 2016, plays a vital role in driving this economic growth and development, ICT Sector Overview, page 1-3.
Key Reasons to Invest in Moldovan Startups:
Growing Foreign Direct Investment (FDI):
In 2021, FDI surged to $264 million, up from $83 million in 2016, signaling increasing global investor interest.
Europe’s first e-Park with unique taxation:
Established in 2018, Moldova Innovation Technology Park (MITP) hosts over 2100 active residents and 270 companies from 40 countries, ICT Sector Overview, page 16-17. It offers:
- Access to a highly skilled IT workforce
- Competitive labor costs
- Favorable visa options
- A 7% flat tax on revenue
IT Visa:
The MITP framework facilitates a simplified visa process for IT specialists and managers, granting up to four years of residency with options for extension, encouraging the attraction of top global talent to Moldova’s tech sector.
Strategic Location and Collaboration with Romania:
Moldova's proximity to Romania facilitates cross-border ventures, providing access to the broader European market. Successful examples include Fagura and Planable.
Supportive Ecosystem:
Moldova's startup scene is supported by various initiatives and stakeholders:
- 250+ Active Startups: Spanning industries from EdTech, FinTech,AgTech to DeepTech and HealthTech.
- Total Funding: In 2024, Moldovan tech startups raised over $44.5M, attracting local and international investors.
- Startup Enablers: (link to community map)
- Investor Networks: two angel networks—Mozaic Syndicate and Business Angels Moldova—as well as a private equity fund, Pyretus Capital.
Tech Talent:
With over 20,700 IT specialists fluent in multiple languages in 2024, Moldova offers unique skills in data analytics, software development, and more. The MITP provides tax advantages, reducing the employer's tax burden.
Ecosystem and Organizational Support:
Moldova's strategy towards digitalization and innovation is supported by initiatives such as dedicated hubs (CyberCor, Glia, an upcoming Agtech hub, etc.), which foster an enabling environment for startups through conferences, incubators, and mentorship programs.
The Entrepreneurship Development Organization (ODA):
Public institution under the Ministry of Economy that supports the development of local entrepreneurship, including startups. ODA has dedicated grant programs for startups and young entrepreneurs such as:
- Start for Youth: aims to promote entrepreneurship among the younger generation to support socio-economic integration. The program offers non-reimbursable funding covering 70% of the investment project, available up to $10,7K. Alternatively, it provides credit with a grant portion, covering up to $98K, structured as 85% credit and 15% grant.
- Digital Innovations and Technology Startups Support Programme: The program offers non-reimbursable financing of up to 80% of the investment project, with a maximum limit of cca $28K.
Multilingual population:
Most Moldovans speak both Romanian and Russian at a native level, with the majority of the population speaking English, French, Italian, Spanish and German. Some regions are fluent in Bulgarian, Ukrainian and Turkish.
Investing in Moldovan startups offers a unique opportunity to be part of a growing ecosystem with significant potential, supported by favorable business conditions and a vibrant community. The strategic advantages, skilled workforce, and increasing investor confidence make Moldova an attractive destination for investment.
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