Bulgaria Leads CEE in Venture Capital Investment for Defense and Security in 2025

Bulgaria has emerged as the leading Central and Eastern European destination for venture capital investment in defense, security, and resilience technologies in 2025, according to new research published by NATO Innovation Fund and Dealroom.

Bulgarian companies in the sector secured approximately $153 million in venture funding during the year, the highest total among CEE states covered in the report. The data reflects increased investor focus on dual-use technologies, space systems, cyber capabilities, and security-enabling platforms aligned with NATO and EU priorities.

The report indicates that CEE has experienced the fastest growth in deal activity since 2020, with funding rounds increasing significantly across the region. However, the absolute share of European venture capital remains concentrated in Western Europe. Germany, United Kingdom, and France together accounted for roughly two-thirds of total European investment in defense and security startups.

Across Europe, venture capital directed toward defense, security, and resilience companies reached a record $8.7 billion in 2025, marking strong year-on-year growth. The increase reflects structural shifts in investor sentiment following Russia’s war in Ukraine, rising NATO capability requirements, and expanded public-sector funding instruments.

A significant portion of Bulgaria’s total was driven by funding secured by EnduroSat, a Sofia-based satellite manufacturer scaling production of modular satellite platforms. Large late-stage rounds in space and dual-use technologies contributed materially to the country’s overall performance.

While Bulgaria’s leading position underscores the maturation of its startup ecosystem, the broader regional picture suggests that CEE defense innovation remains capital-constrained relative to Western European hubs. Sustained growth will likely depend on deeper integration into NATO procurement frameworks, stronger domestic industrial partnerships, and improved access to scale-up financing.

For Southeast Europe, the data signals a gradual shift in defense-industrial dynamics. Venture-backed companies are increasingly positioning themselves as suppliers of enabling technologies rather than traditional platform manufacturers, reflecting changing capability priorities across NATO markets.