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 $7.37 thousands per capita in 2024, 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 key role in driving this economic growth and development.
Key Reasons to Invest in Moldovan Startups:
Growing Foreign Direct Investment (FDI):
In 2023, FDI reached $357.2 million, 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. It offers:
- Access to 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.
Supportive Ecosystem:
Moldova's startup scene is supported by various initiatives and stakeholders:
- 250+ Active Startups: with industries from EdTech, FinTech, AgTech to DeepTech and HealthTech.
- Total Funding: Moldovan tech startups raised over $44.5M in total, from both local and international investors.
- Startup Enablers
- Local Investors: 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 (Tekwill, CyberCor, ArtCor, MediaCor, iHub, NorTek, Inotek, Glia, Agtech Arena, etc.), which create 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 consists of four components: digital innovation, technological innovation, green technology, and sustainable production. It offers non-reimbursable financing of up to 80% of the investment project, with a maximum limit of cca $28K.
The public agency is providing a contest based funding for research, innovation and technology transfer projects. Its portfolio includes two types of grants for innovation:
- Innovational Vouchers provide funding to contract consulting services and scientific expertise from research and innovation organizations. Funding of up to $5.3K is available.
- Technological Transfer projects support activities designed to implement innovative outcomes to create new products and services, improve performance, and increase efficiency. Funding of up to $161K is available.
Multilingual population:
Moldova boasts a multilingual population, with most Moldovans fluent in both Romanian and Russian. Additionally, a significant portion of the population speaks English, French, Italian, Spanish, or German as a second language. Regional languages include 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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