Violetta Kunze, Partner at Djingov, Gouginski, Kyutchukov & Velichkov, outlined in a recent publication in CEE Legal Matters (https://ceelegalmatters.com) three reasons for the technology, media and telecom sector’s ascendancy: “The pandemic played a role. Then there were the milestone transactions of mobile players and media operators. But there was also a large number of transactions over the last 18 months – of strong technology and software companies and start-ups.”
According to Violetta Kunze while past transactions would mean US or EU investment into Bulgaria, the more recent deals saw local start-ups beginning to go overseas. Kunze highlighted that this is a good metric for the development of the tech sector, for how the local industry is growing. There are also local angel investors and there is local venture capital available to support tech-oriented companies from Bulgaria.
Violetta concluded that Bulgarian funds supporting the tech sector bring extra resources to support the local economy and rely on experts with a proven track record, with good business and market knowledge. The ecosystem helps nurture innovation and technology and, when all is said and done, is a deal generator. As a result, smart ideas are becoming an increasingly popular Bulgarian export.
For Violetta Kunze, never-ending tech development is a given as this is not slowing down, neither will M&A work in the tech industry, for the foreseeable future. She points to financial institutions and the accelerating role of 5G technologies, especially in healthcare, as factors of further growth.