In collaboration with the EBRD (European Bank for Reconstruction and Development) and with support from the EU under #InvestEU, The Recursive created Startup Journeys: Bulgaria, a five-part documentary that offers an unfiltered glimpse into the country’s innovation ecosystem. All parts of documentary are now available on YouTube! 

What should early-stage startups aim for?

In the past, investors were more willing to take risks on ideas without an established customer base or product traction. Today, venture capitalists expect to see early traction and customers before committing to investment. That is why securing funding still remains a major challenge for early-stage entrepreneurs.

Vassil Popovski, VP of Engineering at Alcatraz AI and angel investor explains: “Five or six years ago, VCs were willing to invest in startups with just a great team, idea, and technology, even without an MVP or customers, whereas today, they expect some traction and customers before providing funding…”

Advice for new founders often also revolves around understanding the distinction between cash flow and profit. Maggie Stancheva, a startup advisor, emphasizes, “Just because you have money in the bank doesn’t mean you’re profitable. You need to plan your finances carefully, forecast cash flow, and understand the importance of recurring revenue.”

She advises founders to focus on building sustainable financial foundations and avoid cutting corners on crucial areas such as accounting and legal services, as mistakes in these areas can become costly down the line.

The role of community and networking also emerged as critical elements of success.

As one founder put it, “If you surround yourself with the right people — the warriors — it’s much easier to grow your vision.” ?? Watch the rest in episode 1!