Home to one of the largest economies in Southeastern Europe, Croatia is a country rich in culture and boasting a long history.
Positioned along the Adriatic coast, the country’s tech industry in particular has been consistently growing and developing over recent years, and many assert that Croatia has one of the most developed IT industries in the region.
Boasting a highly skilled workforce with operational costs that are affordable, especially compared to other regions, Croatia has attracted entrepreneurs from other regions too. Indeed, sectors including technology, fintech, tourism, and gaming are among the fastest-growing sectors in the country.
The Croatian Startup Ecosystem
It’s no surprise that Croatia has become increasingly popular as a holiday destination due to its incredible landscapes and scenery as well as its rich history, but it’s becoming more than a mere holiday destination.
Attracting up-and-coming entrepreneurs, especially those interested in leveraging digital and remote business models, Croatia is quickly emerging as an exciting place to start a business, and here are some of the most important reasons why.
A Highly Skilled Workforce
The Croatian workforce is well-educated, boasting particular technical skills in engineering, IT and various digital fields. The university-educated population is largely fluent in English and other European languages, and the country’s focus on STEM (science, technology, engineering and math) related qualifications has resulted in a skilled pool of professionals.
But, not only is the workforce highly educated, they also far less than employees in other parts of Europe
Operational Costs Are Affordable
Not only is the cost of living relatively low in Croatia (especially when compared to the rest of the region), but operation costs are also affordable in terms of running a business. Unsurprisingly, this makes it an appealing location for entrepreneurs and startups who would like to bootstrap or reduce overall overhead expenses.
Companies based in Croatia are likely to be able to save on things like office space, general services and, as we mentioned, labour costs too. Thus, startups are able to stretch their budgets while still being conveniently located with access to European markets.
Support and Incentives for Startups
A significant reason behind why Croatia has been successful is due to the support that the government has provided startups, creating incentives to attract foreign investment.
For instance, there are various programmes led by organisations that provide things like financial grants, financing and more in order to foster innovation and startup growth. The country also offers tx incentives for research and development, especially in tech.
EU Membership and Access to Key Markets
Undoubtedly, Croatia’s strategic position and membership to the EU provides the country with valuable access to the broader EU market which is an attractive attribute for businesses looking to scale internationally. Furthermore, the country’s integration into the Schengen zone has resulted in even more support of trade and travel.
There are also EU grants and funds that Croatian startups are entitled to which offers even more avenues and opportunities for financing for early-stage companies.
Great Lifestyle
Countries that are able to offer a high quality of life and a good lifestyle tend to be more attractive to startups, and Croatia’s coastal cities and islands are very attractive to entrepreneurs in this regard.
The country’s beautiful coastline along with its mild Mediterranean climate and rich cultural heritage are incredibly appealing to entrepreneurs who prioritise lifestyle, as well as for their employees.
Digital Nomad Visa
Croatia also offers a digital nomad visa which has been beneficial for remote-working startup founders and employees looking to base themselves in Croatia while still operating in global markets.
Are There Unicorns in Croatia?
There’s no doubt about the fact that Croatia is well on its way to becoming a top startup destination, but a massive factor in the discussion around a country’s economic success and success in business is whether or not there are unicorns that have been established within the country.
As of October 2024, Croatia is home to one unicorn, Rimac Automobili.
Rimac Automobili: $2.14 Billion
Launched in 2009, Rimac Automobili is the designer and manufacturer of electric hypercars that are designed to provide environmentally friendly vehicles.
The company is based in Sveta Nedelja, Croatia, and having received a total of $885 million of investment so far, mostly from Goldman Sachs and European Investment Bank, Rimac Automobili was most recently valued at $2.14 billion.
The company’s electric vehicles are manufactured with a fusion of light build and electric vehicle components, enabling customers to access sporty cars by leveraging the latest technology and resources.