Published on and written by Cyril Jarnias
Serbia’s entrepreneurial ecosystem has scaled up significantly in just a few years. Pro-business reforms, a massive influx of foreign investment, European programs, the rise of regional venture capital funds, and the emergence of ambitious startups have made Serbia a much more fertile ground for fundraising than it was a decade ago. But this environment is also more complex: between public grants, “green” credit lines, business angels, regional VC funds, international competitions, and crowdfunding, the choices are plentiful, provided you know where to look and how to prepare.
This article provides a concrete guide to fundraising in Serbia, applicable to both traditional SMEs and tech startups with international ambitions.
Understanding the Playing Field: Why Serbia Attracts So Much Capital
Before discussing fundraising strategies, it’s useful to understand why Serbia attracts so much funding and what the country’s main strengths and weaknesses are from an investor’s perspective.
Serbia has recorded positive foreign direct investment (FDI) flows for over ten years. In 2023, this FDI reached approximately €4.5 billion, or 6.5% of GDP, with a total stock close to €39 billion in euro equivalent and over $60 billion according to international estimates. Projections indicate around €4.6 billion for 2024 as well. In other words, the country has become a structural recipient of foreign capital.
Over 60% of foreign direct investment in France is concentrated in the services sector.
The assets that appeal to investors are well identified: strategic geographic location at the crossroads of European corridors, young, skilled, and relatively low-cost workforce, free trade agreements with the European Union, Russia, Turkey, China (a free trade agreement entered into force in 2024), membership in the CEFTA zone, and attractive taxation with a corporate income tax rate of only 15%, among the lowest in Europe.
Since 2007, the European Union has supported Serbia via the Instrument for Pre-Accession Assistance (IPA), with an average of about €170 million per year. For the 2021-2027 period, IPA III allocates €14.3 billion to the Western Balkans and Turkey, with a significant portion earmarked for Serbia to finance reforms, infrastructure, and its innovation policy.
This combination – high FDI, European money, flexible tax policy, competitive workforce, and growing market – creates a particularly interesting environment for fundraising, provided you master a few key concepts.
Setting Up Your Structure: A Quick but Strategic Step
Raising funds first requires being “bankable” and “investable,” which starts with the legal form and compliance.
In Serbia, business registration is fast: an average of 5 to 7 business days, with seven procedures identified by international studies. The key agency is the Business Registers Agency (APR), which centralizes company registration.
This is the symbolic minimum capital, in dinars, to set up a limited liability company (D.O.O.) in Serbia.
Alongside this, the joint-stock company (A.D.) is suitable for larger projects or companies aiming for equity financing. The minimum capital is significantly higher: 3 million dinars for a closed A.D. (approximately €25,000) and 4 million for an open A.D. (approximately €34,000). This type of structure becomes relevant when considering, in the longer term, access to markets or institutional investors who value the governance standards associated with joint-stock companies.
The sole proprietorship regime (PR) can be relevant for very small-scale activities or a market testing phase. However, it has two major drawbacks for a significant fundraising round: the unlimited liability of the owner on their personal assets and the absence of share capital, making it poorly suited for this type of financing.
A table summarizes the key parameters that interest financiers from the outset:
| Legal Form | Minimum Capital | Liability | Typical Profile | Attractiveness to Investors |
|---|---|---|---|---|
| D.O.O. | 100 RSD | Limited | SMEs, Startups | High for seed / early stage |
| Closed A.D. | 3,000,000 RSD | Limited | Large SMEs | High for inst. investors |
| Open A.D. | 4,000,000 RSD | Limited | Large Companies, IPO | Very high for public markets |
| PR | 0 RSD | Unlimited | Micro-activity | Low beyond startup phase |
Foreign investors, whether funds or industrial companies, generally require a proper Serbian company, potentially 100% owned by a foreign group – which Serbian law allows, with no restrictions on capital ownership by non-residents.
Taxation and Incentives: A Key Lever in Your Funding Strategy
Serbian taxation, viewed from the angle of fundraising, offers several assets to be turned into arguments during your discussions with financiers.
The nominal corporate income tax rate of 15% is a first advantage. Add to this a standard VAT rate of 20% and a reduced rate of 10% on certain products, as well as wage taxation at 10% plus social contributions of around 37% of gross salary, split between employers and employees.
Investment threshold in millions of euros to qualify for a full corporate tax exemption for 10 years in Serbia.
The incentives don’t stop there: the Serbian government provides grants per job created, typically between €2,000 and €10,000 per position for R&D, production, or service activities. In some cases, exemptions from social contributions or customs duties on imported equipment are also available. Local authorities sometimes add additional benefits – land made available, infrastructure, access road construction.
The country has a network of 62 double taxation treaties, covering most European countries as well as several partners in Asia and Africa. These treaties provide legal security for dividend repatriation and intra-group financial flows, a key element for international investors.
Presenting these incentives in a structured way in your business plan can make a difference during a fundraising round, especially with venture capital or foreign corporates who think in terms of full costs across several countries.
Banks: The First Reflex for SMEs and Investment Projects
In Serbia, the financial system remains largely dominated by banks, in line with the continental European model. For the majority of SMEs, the first fundraising happens through a bank loan, potentially backed by international credit lines.
Several major commercial banks operate in the country, including Banca Intesa Beograd, Raiffeisen, UniCredit, and OTP. Most offer services in English and are well acquainted with the needs of foreign and exporting companies.
Business loans offer classic advantages like maintaining 100% of the company’s equity, building a credit history, and the tax deductibility of interest. In return, they have drawbacks such as a sometimes-heavy debt service, the need to provide collateral (mortgages, pledges, personal guarantees), and strict approval criteria.
Interest rates in Serbia have dropped significantly since the 2000s. After a peak of over 25% in 2006, they fell below 2% in 2020 before rising again in the inflationary context. For the 2026-2027 horizon, projections place policy rates around 4-5%, which offers hope for a normalization of credit costs in the coming years. To convince a bank, it remains essential to present solid financial projections, credible own contribution, and tangible collateral.
Where Serbia really stands out is with credit lines dedicated to SMEs and the green transition, driven by European and international institutions.
“Green” Credit Lines: An Underutilized Opportunity
Among the most interesting mechanisms for an SME or a mid-cap company, the €160 million credit line made available by the European Union for Serbian businesses holds a central place. This envelope, announced in Belgrade as part of the “EU for the Green Agenda in Serbia” initiative, is managed via Banca Intesa and Intesa Leasing, in partnership with EIB Global, the development branch of the European Investment Bank (EIB).
The goal is clear: finance, on favorable terms, working capital needs and especially investments contributing to the green transition and energy efficiency. This refers to renewable energy projects, clean transport, energy modernization of industrial facilities or buildings, reduction of emissions and environmental footprint.
This €160 million EIB credit line aims to support about 240 companies and preserve some 25,000 jobs in Serbia.
For an entrepreneur, the question is not whether these funds exist, but how to access them. The answer lies in two words: preparation and “bankability”. The “EU for the Green Agenda in Serbia” initiative is not limited to injecting capital; it also funds technical assistance aimed at helping SMEs structure bankable projects. Specialized consultants assist companies in defining, modeling, and documenting their green projects. Training sessions for Serbian banks are also organized to familiarize them with green finance and European sustainability criteria.
Concretely, an agri-food production SME that wants to install photovoltaic panels on its roofs or modernize its cold chain to reduce energy consumption can, with the help of this mechanism, turn this idea into a solid financial project and obtain a loan on terms more attractive than the classic market.
Amount in euros of the facility signed by EIB Global with Banca Intesa Beograd to finance SMEs and mid-caps, notably for climate projects.
Other international players are present, such as Proparco (a subsidiary of the French Development Agency), which opened a €50 million line for ProCredit Bank Serbia, intended to refinance SMEs and green projects. ProCredit works with about 4,000 Serbian SMEs, with average loans around €242,000, and developed an internal green financing methodology as early as 2010.
For a manager, the approach involves contacting their bank (Banca Intesa, ProCredit, UniCredit), identifying the desks connected to these international lines, and then building an investment file that meets the criteria of the EIB or Proparco: quantified energy savings, emission reductions, improved climate resilience, etc.
Grants and Public Programs: A Lever Not to Be Overlooked
European funds and bilateral aid translate on the ground into calls for projects and grant programs that can complement – or trigger – bank financing or an equity fundraising round.
Since 2001, the EU has allocated over €250 million to innovation and competitiveness in Serbia, targeting SMEs in particular. A program from the EU delegation, endowed with €27 million, helps companies acquire new equipment via grants coupled with bank loans. In one year, 716 companies benefited from this type of support.
A platform catalyzing green investments in Serbia through grants and co-financing, with significant leverage.
Has over €15 million provided by Sweden, Switzerland, and UNDP.
Provides grants for innovative green projects and identifies companies eligible for complementary bank credit.
Approximately €4 million in co-financing mobilized since 2022.
Each euro in grants has leveraged nearly €6 in complementary funding.
Over €29 million invested in total thanks to the platform.
These investments represent about 15% of estimated green investment in the country.
Alongside these cross-cutting mechanisms, the Development Fund of the Republic of Serbia offers “start-up” loans and other products tailored to SMEs, while the Development Agency of Serbia (RAS) co-finances internationalization projects (trade fair participation, market prospecting). Regional guarantees, like those from the Vojvodina Guarantee Fund, target specific audiences (e.g., women entrepreneurs or business founders).
The PROGRES program, implemented by UNOPS with funding from the EU and the Serbian and Swiss governments, supported 34 disadvantaged municipalities. It helped attract over €10 million in investments, create nearly 100 companies and over 700 jobs. Individual successes, like Erkan Hadžić’s corrugated cardboard company or the modernization of Milan Veličković’s dairy farm, illustrate how a targeted grant can initiate a viable entrepreneurial dynamic, later opening access to bank or private financing.
An entrepreneur should therefore systematically explore the available public “mix”: sectoral grants, calls for green projects, programs from the Innovation Fund (Early Development, innovation co-financing, innovation vouchers, acceleration programs like Katapult or Smart Start, etc.). These instruments bring not only non-dilutive cash but also a credibility label highly valued by banks and funds.
Venture Capital: The Funds Keeping a Close Eye on Serbia
Venture capital has long been the weak link in Europe compared to the United States. Despite a 13% annual growth in amounts raised on the continent between 2014 and 2024, VC investment still represents only about 0.3% of European GDP, versus more than triple that in the US. In this cautious context, Serbia stands out as a dynamic outsider, driven by a strong technical talent pool, competitive costs, and a growing ambition to tackle global markets.
Concretely, several regional and European funds are positioning themselves in Serbian startups. In the immediate neighborhood, Eleven Ventures (Bulgaria) covers Southeastern Europe in pre-seed and seed with a focus on fintech, health, the future of work, foodtech, and e-commerce. South Central Ventures, based in Ljubljana, Zagreb, Belgrade, and Skopje, invests in seed, series A, and B in regional tech, with Serbian companies like HireApp, Pixyle AI, or Orgnostic in its portfolio.
Overview of the main funds and accelerators present in Belgrade’s startup ecosystem, with their investment ticket specifics.
The first corporate venture fund in the Balkans, created by Telekom Srbija. Invests in seed and series A in tech startups.
Provides up to €50,000 in pre-seed for 5 to 15% equity. Also plays an accelerator role.
Targets investment tickets from €100,000 to €1.5 million.
Enables a form of community micro-investment, with tickets between €25,000 and €250,000.
Finances social or environmental impact projects, with amounts from €100,000 to €2 million.
Positions itself on deals from €500,000 to €5 million, at the interface between private equity and venture capital.
At the European scale, a significant number of generalist or specialized funds have already invested in startups of Serbian origin, notably in B2B software and SaaS solutions targeting Western markets. Names like Point Nine Capital, Earlybird Venture Capital, Accel, Moonfire Ventures, or Euroventures regularly appear in the cap tables of companies founded by Serbs, often legally structured elsewhere (Estonia, Delaware, etc.) but maintaining a technical base in the country.
Minimum amount in euros for a Series A funding in the described ecosystem, before moving to larger tickets for scale-ups.
The key, for a Serbian startup, is to anticipate the criteria of these investors: a technically strong team, a product that has already reached a prototype or tested MVP stage, clear intellectual property, a target market beyond Serbia (generally the EU or North America), and initial signs of international traction. Funds increasingly expect young companies to be familiar with market standards regarding shareholder agreements (often aligned with British BVCA models), employee options, and governance.
Business Angels and Local Networks: The First Circle of Capital
Before approaching large funds, many Serbian entrepreneurs go through business angels, whether local or members of the diaspora.
The Association of Business Angels of Serbia (ABAS) brings together investors providing capital and expertise, as part of a European initiative. The Digital Serbia Initiative network, composed of over 50 angels and the first in the region to join EBAN, has already invested ~€1 million in about ten local startups (like Tapni and Shopnosis), enabling them to raise nine times more from other investors later on.
Transnational networks like Skok123, based in North America but focused on Southeastern Europe, bring another type of capital: in addition to money, they open doors to American or Canadian markets. Skok123 positions itself in pre-seed and seed, across all sectors, but requires a personal commitment from the founders and that they retain at least 90% of the equity at the time of investment, to limit initial dilution.
In Serbia, the typical business angel investment ticket ranges from €25,000 to €100,000. While this amount may seem limited for an industrial project, it is often suitable for funding a software startup, covering primarily the costs of a technical team and several months of development. It’s crucial to structure these seed rounds while anticipating the requirements of future venture capital (VC) funds: by opting for a reasonable valuation, standardized clauses, and reserving room for subsequent funding rounds.
Incubators, Accelerators, and Competitions: Springboards to Investors
The Serbian ecosystem has equipped itself in just a few years with an impressive network of incubators, technology parks, and acceleration programs. These structures don’t just offer cheap office space: they play a role as “curators” for investors.
A network of technology parks, hubs, and support programs to help Serbian startups develop their business model, market strategy, and funding.
The parks in Belgrade, Novi Sad, Niš, and Čačak support startups from their earliest stages of development.
Hubs like ICT Hub or StartIt offer a conducive environment for young company development.
USAID-funded program to help startups refine their business model and market strategy.
Offers programs like Katapult or Smart Start, combining intensive support and funding.
Beyond domestic programs, international initiatives like “Mission France” illustrate how economic diplomacy and foreign ecosystems connect with the Serbian scene. This program, led by the French Embassy, the Belgrade Technology Park, Bpifrance, and French Tech, offers selected Serbian startups a study trip to France, access to the VivaTech trade show, meetings with French funds and corporates, and coverage of flights and entry to the show. The criteria – innovative product, scalable model, clear intellectual property, international ambition – are very close to those of investors. For the selected startups, this stage often serves as a springboard to a larger funding round.
International competitions, such as pitch awards organized in Belgrade or at major regional trade shows, are a valuable showcase and provide accelerated access to investor networks. At the European scale, competitions supported by business media or investment banks also offer opportunities for Serbian startupers. To fully benefit, it’s essential to master the English-language pitch, defend an international vision, and present clear corporate governance.
For a young company, the equation is simple: multiplying opportunities to get noticed in these programs significantly increases the chances of attracting business angels, local funds, and foreign funds.
The Growing Role of Crowdfunding in the Funding Palette
Even though crowdfunding is not yet as developed in Serbia as in some Western European countries, it is beginning to emerge as an alternative or complement to banking circuits and venture capital.
For a Serbian creator, crowdfunding (via donations, pre-sales, loans, or equity) simultaneously allows raising funds, validating the market, building a community of first customers, and demonstrating concrete demand to future investors.
International pre-sale or reward-type platforms (like Kickstarter) remain accessible provided the project is legally structured in an eligible country and tax and logistical constraints are managed. For equity crowdfunding, the framework is more complex: it generally requires publishing detailed financial information, sometimes a prospectus depending on the amounts raised, and compliance with European crowdfunding rules when soliciting investors from multiple EU countries.
For Serbian entrepreneurs, equity crowdfunding often serves to complement an initial funding round rather than replace it. A common scenario involves a startup completing a first seed round with business angels and a local fund, then opening a small tranche of participatory funding to its community. This approach allows it to strengthen its cash flow and marketing budget while expanding its network of committed ambassadors.
It is highly recommended to seek guidance from a lawyer or specialized advisor before embarking on this path, to avoid regulatory pitfalls and to structure governance that is compatible with the future arrival of institutional funds.
Leveraging Major European and Regional Programs
Beyond credit lines for SMEs, the EU has established several financial frameworks that can indirectly benefit Serbian companies, especially those active in green sectors, innovation, or infrastructure.
The Western Balkans Investment Framework (WBIF) illustrates how major infrastructure projects create opportunities for local SMEs. With €210 million in grants awarded to Serbia for projects estimated at €5.4 billion, it funds heavy infrastructure (roads, railways, power grids, water treatment, waste, digital). These projects generate opportunities for subcontracting, material supply, maintenance, and digital services. An SME can thus capture a share of the markets linked to major projects like the Belgrade-Budapest railway corridor, the trans-Balkan power corridor, gas interconnections, or wastewater treatment plants.
The Economic and Investment Plan for the Western Balkans, complemented by a “Growth Plan” with an additional €1.58 billion, also seeks to increase regional economic integration in preparation for EU accession. For companies, this means progressive convergence towards European standards (accounting, environment, public procurement), which is a plus vis-à-vis foreign funds accustomed to these standards.
Several European programs, such as InvestEU, DIGITAL Europe, and the regional WB EDIF (Western Balkans Enterprise Development and Innovation Facility), facilitate SME financing. They act either by providing guarantees to banks or by providing capital to regional investment funds, thus creating a more favorable environment.
A Serbian entrepreneur must therefore not only follow national calls for projects but also monitor European instruments that materialize in the country through banks, development agencies, or funds.
Key Sectors: Where is Capital Flowing?
To maximize your chances of raising funds, it’s useful to know which sectors money is concentrating in today.
In the Serbian economy, FDI has long been dominated by manufacturing (about 30% of the stock), construction (nearly 16%), and finance (nearly 12%). In industrial detail, segments like rubber and plastics, automotive, and agri-food capture a large share of foreign investment, with big names like Fiat, Michelin, Siemens, Continental, or automotive wiring companies.
European and regional investors concentrate their funding on specific areas. B2B software, SaaS, AI and machine learning, deeptech, fintech, agritech, cleantech, and digital health are particularly favored. AI alone accounts for up to a third of invested amounts over the last decade, and sometimes nearly 40% of the value of quarterly deals. Defense, aerospace, and space sectors are also seeing renewed interest, driven by the current geopolitical context.
In Serbia, this appetite translates into particular attention from funds for software startups capable of quickly exporting their products: productivity tools, HR solutions, data platforms, industry software, B2B fintech. Lower wage costs than in Western Europe allow these startups to reach profitability or healthier “unit economics” earlier, which reassures investors.
The national goal of 45% renewable electricity by 2030, the lifting of the nuclear moratorium, the development of wind and solar parks, and the revival of mining projects for lithium create numerous opportunities for innovative companies. These niches include equipment, engineering, monitoring software, energy storage, and flexibility services. Available green credit lines and grant programs can serve as a lever to finance these private projects.
For an entrepreneur, positioning themselves at the intersection of several trends – digital and energy, AI and industry, fintech and exporting SMEs, agritech and climate – significantly increases the chances of attracting capital.
Fundraising Strategy: How to Articulate Different Sources
Faced with this relative abundance of funding sources, the real difficulty is not so much finding money as building a coherent trajectory.
For a tech startup, a realistic path begins with the founders’ equity, supplemented by competitions or grants (Innovation Fund, programs for young entrepreneurs from the Ministry of Economy, or support from bodies like the World Bank or USAID on pilot projects). After MVP development, a funding round with business angels (via ABAS or the Digital Serbia Initiative network) can be complemented by a crowdfunding campaign. Entry into an incubator or accelerator then prepares for a seed round with funds such as ICT Hub Venture, TS Ventures, Eleven Ventures, or South Central Ventures.
A year later, if international traction is there, a Series A round combining a regional fund and a pan-European investor becomes feasible. In this journey, each step prepares the next: grants increase credibility, angels reduce product risk, local funds validate the model, international funds accelerate growth.
For an industrial or services SME, the financing trajectory for a green project involves several steps. First, put together an investment project including a green component. Then, cross-reference national grants (like exemptions, employment aid, and tax relief) with available European programs (such as the EU Green Agenda, IPA, or WBIF). Once these aids are identified, the company can apply for a loan from a bank connected to an EIB or Proparco line. If the project is sufficiently ambitious, an equity portion can also be offered to a private equity fund or a foreign corporate interested in establishing in Serbia.
In all cases, the same rules apply: refine the legal structure, ensure tax compliance, document financial projections, demonstrate team capability, prepare materials in Serbian and English, and rely on the many available intermediaries (chambers of commerce, public agencies, incubators, law firms, international banks).
A Promising Environment, But One That Requires Professionalization and Patience
Raising funds in Serbia is neither easier nor harder than elsewhere in Europe; it’s mostly different. The state and the European Union play a much more direct role than in France or Germany at certain stages, via grants and subsidized credit lines. Banks, supported by the EIB, Proparco, or other institutions, remain dominant for financing physical investments. Venture capital is present, but more regional and pan-European than local, and requires founders to think immediately beyond the Serbian market.
Structural weaknesses like bureaucracy, the weight of the informal economy, and corruption risks require selecting reliable partners and carefully documenting each step of operations.
For an entrepreneur willing to play this game, Serbia offers a particularly attractive risk-opportunity ratio. Costs remain contained, the workforce is skilled, taxation is favorable, public and European funding is abundant, and the support ecosystem – Innovation Fund, technology parks, angel networks, development agencies, bilateral programs – has little left to envy from much more advanced countries.
By having a clear vision of these mechanisms and building a step-by-step financing strategy, it becomes not only possible to raise the necessary funds for your project but also to turn Serbia into a launchpad for a company capable of playing in the European, or even global, arena.
A 62-year-old retiree, with a financial estate exceeding one million euros well-structured in Europe, wanted to change tax residence to relocate to Serbia, optimize his tax burden and diversify his investments, while maintaining a link with France. Allocated budget: €10,000 for complete support (tax advice, administrative formalities, relocation, and asset structuring), without forced asset sales.
After analyzing several attractive destinations (Greece, Cyprus, Mauritius, Serbia), the chosen strategy was to target Belgrade for its moderate personal income tax rate, absence of wealth tax, a cost of living significantly lower than Paris, and a key position at the gates of the EU. The mission included: pre-expatriation tax audit (exit tax or not, tax deferral), obtaining residence with purchase of a primary residence, CNAS/CPAM detachment, bank residence transfer, plan for breaking French tax ties (183 days/year outside France, center of economic interests), introduction to a local network (lawyer, immigration, French-speaking partners), and asset integration. This setup enables significant tax savings and better succession preparation while managing risks (French audits, double taxation via FR-RS treaty, cultural adaptation).
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
