The Montenegrin startup ecosystem, although still young, is in a phase of intensive development and is well on its way to becoming a significant player on the regional and global scene. Despite still not being home to any “unicorns”, the Balkan region has already shown that it possesses the talent and potential to create success stories recognized worldwide. Several startups from neighboring countries have already conquered global markets, while Montenegro is making significant steps towards its first major success. Our region is at a turning point – with strategic investments and support, we may soon witness the birth of new startups that will shape the global technology scene.
This was stated in an interview with eKapija by Aleksandar Dimitrijević, CEO of the startup venture studio Digital Den, which has been providing intensive support to startups from across the region for several years, opening their doors to global markets.
Founded in December 2021, Digital Den Hub has positioned itself as a key catalyst for innovative solutions and startup development across the Western Balkans. As Dimitrijević told us, as a startup venture studio, Digital Den has the ability to turn initial ideas into concrete products, following their development through all stages, from concept to market.
– In addition, the studio provides support to existing startups from Montenegro and the region, introducing them to its portfolio and providing them with resources for further development, operational improvement and expansion into new, promising markets. Our goal is to help strengthen the Montenegrin economy, but also to create a sustainable and dynamic startup ecosystem in the region. As a starting point for the transformation of ideas and a springboard for startups looking for investments, Digital Den opens the door to global markets, with a special focus on the United States and the European Union – explains our interlocutor.
Currently, Digital Den Hub manages a portfolio of over 30 startups covering various industry verticals, providing them with a unique opportunity to grow and develop through customized support programs.
– Digital Den Hub offers startups from Montenegro and the Western Balkans a unique support program designed to cover all stages of development – from an innovative idea to validation of success. Through a series of strategic activities, Digital Den will enable every startup to get the necessary resources, knowledge and contacts to realize its potential – he states.
As he explains, startups are selected through regional partner networks, applications through the Digital Den website and digital platforms, as well as through activities at universities and conferences. After initial interviews, each team is provided with support tailored to the stage of development – whether it is an idea in its infancy or preparation for conquering the market.
– For startups that are not originally from Montenegro, Digital Den facilitates the process of establishing companies in the country. With administrative, legal and financial support, startups are quickly and efficiently integrated into the Montenegrin ecosystem. The hub also actively supports startups in preparing for pre-seed investments, including creating pitch decks, validating ideas and market research, as well as finding the investments themselves – Dimitrijević tells us.
Digital Den also works intensively on connecting startups with global markets , and projects such as Montenegro Technology and Startup Bridge (MTSB) enable startups to present themselves on the American market, connect with investors, and participate in accelerator programs, opening the door to international success.
Mentoring support is important for the development of every startup, and startups in Digital Den have access to mentors from the USA, Europe, and the Balkans.
– Their experience and expertise are key to guiding young companies through the challenges of growth and development – says Dimitrijević, adding that through acceleration programs such as the Startup Readiness Program, developed in cooperation with partners from the Netherlands, Digital Den transfers key knowledge and skills to startup founders.
– Additionally, our cooperation with universities encourages innovation and entrepreneurship already at the academic level. This comprehensive support model allows startups access to mentors, capital, and regional and international markets, while at the same time contributing to the development of the Montenegrin economy and the creation of a sustainable innovation ecosystem – emphasizes the interlocutor of eKapija.
Thanks to the Montenegro Technology and Startup Bridge program, startups from the region have open access to the American market (Photo: Digital Den)
Opening the door to the American market
Digital Den has launched a very important project, the Montenegro Technology and Startup Bridge (MTSB), in cooperation with the State Department and the US Embassy in Montenegro. Dimitrijević says that the goal of this project is to connect startups from Montenegro and the Western Balkans with the global innovation ecosystem, especially the US market.
– This ambitious program is designed to facilitate the transfer of knowledge, networks and investments, providing startups with a unique opportunity to internationalize and conquer the global stage. The program has been implemented for the fourth year in a row – he states.
As he explains, the program consists of two key segments. The first is the Soft Landing program , within which the three most promising startups from the Digital Den portfolio are given the opportunity to reside in the USA.
– During the program, startups have access to top mentors and experts who help them successfully market their products on the American market. The goal of this segment is to open sister companies in the US, thus ensuring their presence in one of the most important world markets – Dimitrijević points out.
The second segment is the accelerator program , where seven selected startups participate in an intensive accelerator program focusing on validating ideas, developing market and business strategies, and preparing for the prestigious SXSW conference in Austin, Texas.
– This event provides a unique opportunity to present ideas to global investors and key industry players. Inspired by the need to internationalize the Montenegrin startup ecosystem, the US Embassy and the State Department recognized MTSB as a program of strategic importance for supporting innovation and young entrepreneurs. The project not only opens doors to the global market, but also builds bridges between Montenegrin and American innovators, investors and experts – says our interlocutor, adding that with the support of this program, startups from Montenegro and the region get the chance to become part of the global innovation ecosystem.
– In this way, they strengthen their position on the international stage and contribute to the development of the local economy and entrepreneurial spirit. Montenegro Technology and Startup Bridge truly represents a step forward towards advancing innovation from the Balkans – he points out.
(Photo: Digital Den)
Startup ecosystem in Montenegro
When asked how he evaluates the startup ecosystem in Montenegro, the interlocutor of eKapija answers that it is still a young ecosystem that is in an intensive phase of development .
– We are well on our way to becoming a significant player on the regional and global stage. Compared to neighboring countries, such as Serbia, Croatia and Slovenia, which started developing their ecosystems earlier and today have more developed infrastructure and greater access to capital, Montenegro shows great potential for progress and building a competitive ecosystem – says Dimitrijević.
In order for Montenegro to become recognizable on the regional and global startup scene, several key initiatives need to be implemented. The first, he says, is to improve the legal framework .
– Work on modernizing regulations for investing in startups has already begun, and the goal is to create a favorable environment for the development of innovations and attracting capital. This is where we connect to the next segment, which is attracting investments . Namely, establishing venture capital funds, educating investors and encouraging investments in innovative projects would enable startups to grow faster and compete in the global market – believes our interlocutor.
Another important segment that needs to be worked on is cooperation with corporations and the academic community . As he explains, connecting startups with universities and the economy would create a solid foundation for innovation and knowledge exchange.
– Digital Den has been building partnerships with key ecosystem players in Western Europe and America for years, creating bridges between Montenegrin startups and global opportunities. The acquired knowledge, experiences and contacts are transferred to the local ecosystem, thus accelerating the growth process that has already become visible. With timely reforms and strategic investments, Montenegro has the opportunity to transform its startup ecosystem into a regional and globally recognizable center of innovation, opening the door to new generations of entrepreneurs and laying the foundation for long-term economic development – he emphasizes.
A region at a crossroads
It is known that a large number of startups from the region have attracted significant investments. We asked Dimitrijević if it is realistic to expect to get a “unicorn” from this area.
– Behind every successful startup that has stood out on the global stage is a huge amount of work, dedication and making key decisions at the right time. Success depends not only on the vision of the founder, but also on the support of investors and all those who believe in the idea and its potential. Although Montenegro is not yet home to a “unicorn”, the Balkan region has already shown that it has the talent and potential to create global success stories. Several startups from neighboring countries have already conquered global markets, while Montenegro is making significant steps towards its first major success. I firmly believe that the startups from our portfolio, FinalFind and Flourish, which are already achieving significant growth in the local and regional market, have the potential to one day be present on the global stage, especially considering that Flourish has already opened its representative office in the USA – he says.
He states that in order to fully utilize the potential of the ecosystem, the key is access to greater venture capital, which provides startups with the funds necessary to grow and conquer the market, and a focus on innovations that solve globally relevant problems and attract the attention of investors and partners around the world.
– It is also important to create an environment that motivates entrepreneurs to stay and build their companies in the region, while at the same time having support for internationalization. Montenegro and the Balkan region are at a turning point – with strategic investments and support, we can witness the birth of new startups that will shape the global technology scene – emphasizes Aleksandar Dimitrijević.
(Photo: Digital Den)
The biggest challenges for startups
All entrepreneurs in Montenegro and the region face numerous problems. When it comes to startups, these challenges seem to be even more pronounced. Our interlocutor says that challenges often test the resilience and vision of founders, and the lack of financial resources , which makes it difficult to access pre-seed and seed investments necessary for product development and launch, is one of the most common obstacles for startups.
– Also, the challenge is the validation of the idea and market demand, where many startups must prove that their solutions truly meet the needs of users and the market. It is also important to note the scaling of the business , especially to international markets, which is often burdened with legal, logistical and operational challenges – he states.
Additionally, founders face challenges such as building and retaining teams , as well as team management, understanding the complex regulatory and bureaucratic infrastructure , which often slows down development, lack of experience in running a business , which makes it difficult to make strategic decisions, competition and differentiation in the market , where startups must find a way to attract users and stand out from the competition, as well as high costs of marketing, branding and distribution , which represent an additional obstacle to conquering the market.
– Due to all of the above, Digital Den provides support through a comprehensive approach that includes mentoring support, with experts from various industries, legal and administrative assistance, which facilitates business, educational programs that empower founders and teams, connecting with investors, to ensure access to capital, and infrastructure resources, necessary for business growth and scaling – emphasizes Dimitrijević.
Balkan Tech Summit (Photo: Digital Den)
State support
When asked how much the state is willing to help and whether it recognizes the importance of developing the startup scene, Dimitrijević says that Montenegro increasingly recognizes the key role of developing the startup ecosystem as a driver of innovation and economic progress.
– With the adoption of the Law on Incentive Measures for the Development of Innovation and Research, more favorable conditions have been created for the work of startup companies, including tax breaks and other benefits. The Register of Innovation Activities further facilitates business and attracting investments, which contributes to strengthening Montenegro’s position on the innovation map of the region – he states.
Institutional support, he adds, comes through cooperation with key stakeholders such as the Science and Technology Park, Tehnopolis and the Innovation Fund, while the strategic programs of the Government and the Ministry of Science provide the foundation for long-term growth. He also points out that universities play a significant role in fostering the entrepreneurial spirit through educational programs and projects, such as the Digital Den Corner initiative.
– However, Montenegro still faces challenges. The complexity of bureaucratic procedures, an underdeveloped domestic investment market and the need for greater investment in education and research represent obstacles that need to be overcome. These measures will not only enable the sustainable development of innovation, but will also enable Montenegro to position itself as a regional leader in innovation and attracting foreign investment – he states.
When it comes to legislation, our interlocutor says that the aforementioned Law on Incentive Measures for the Development of Innovation and Research represents a key step in strengthening the Montenegrin innovation ecosystem. As he points out, by implementing it, Montenegro is building a solid foundation for the sustainable development of startup companies, attracting domestic and foreign investments, and improving the competitiveness of its economy.
– This law brings a wide range of benefits that strengthen innovative projects and encourage the development of entrepreneurship, primarily through tax breaks , so startup companies and innovative enterprises can achieve significant reductions in profit tax, as well as contributions for employees in the research and development sectors, thus encouraging employment in these areas – says Dimitrijević.
It also provides financial support , where companies listed in the Innovation Activities Register gain access to state funds and programs for research, development and innovation, enabling them to operate more stably and grow. The process of registering startups has also been facilitated , with additional resources for business development, providing young companies with support at the beginning of their journey.
Through additional tax breaks for investors, the law motivates private investment in innovative projects, thereby stimulating the flow of capital into key development sectors. Another benefit is reflected in international cooperation and knowledge transfer , with networking with global research centers and knowledge transfer from academic to business sectors becoming priorities, further enriching local expertise.
– The implementation of this law is already bringing results. Startups from the Digital Den portfolio have so far managed to attract almost EUR 4 million in investments, thanks to the incentives and support provided by the law – points out eKapija’s interlocutor.
He notes that connecting large companies and startups is crucial for creating a dynamic and sustainable business ecosystem. The synergy between these actors brings multiple benefits – large companies get the opportunity to invest in innovative ideas and products, becoming not only financial partners, but also early adopters and strategic advisors for guiding these products towards market success.
– The Law on Incentive Measures for the Development of Innovation and Research opens the door for companies to invest in startups, with tax breaks, which has attracted significant attention from the domestic business sector. I repeat, based on this law, Digital Den managed to attract 35 investors who, over a period of three years, invested almost EUR 4 million in startups from our portfolio. These investments provided startups with the necessary capital for initial development, from ideas to market-ready products. Such results clearly show that there is potential and interest among domestic companies in investing in innovative projects – he emphasizes.
Balkan Tech Summit (Photo: Digital Den)
First venture capital fund
Last year, Digital Den organized the Balkan Tech Summit, during which the Balkan Tech Fund, the first venture capital fund in Montenegro, was established. The establishment of this fund, says Dimitrijević, represents a milestone for the further development of the startup community.
– This fund brings a key opportunity for continuous financing of innovative startup ideas within the domestic ecosystem, precisely in phases when state support, corporate investments or private investments reach their limits. The significance of this fund lies in the fact that startups will no longer be forced to seek Seed or Series A round of investments outside the boundaries of the ecosystem. Instead, they will have the opportunity to secure the necessary funds for further growth and development right in Montenegro – says the interlocutor.
When asked about activities in the coming period, he replies that Digital Den’s plans are ambitious, with a clear focus on expanding the program to the European Union, providing startups with the opportunity to choose between two strategic acceleration directions: the European and American markets.
– We understand that different products and visions require a customized approach, and we want to enable startups to focus on the market that best suits their needs and potential. In addition, Digital Den is actively working on improving partnerships with key states in the US, which have emerged as global leaders in specific industry verticals such as med-tech and fin-tech. Through these partnerships, our goal is to provide startups with additional support, directing them towards large markets and increasing their chances for global success – concludes Aleksandar Dimitrijević in an interview with eKapija.
Dragana Obradovic
Source: ba.ekapija.com
