Balkan Business Brief

Croatian venture capital investment is increasing, but should these companies be included in the report?

When it comes to investments in Croatian startup companies, it is evident that the investment is increasing year after year. Recently published statistical data from Invest Europe indicates that venture capital investments have surged from 439 million euros to as much as one billion euros. However, it is important to exercise caution when assessing Invest Europe's figures due to their specific methodology, which considers only companies with headquarters and activities in Croatia, excluding debt components. The assessment of total investments received by Croatian startups is challenging due to the common practice of many startups relocating their official headquarters to countries like UK, Ireland or the USA, while still maintaining their teams and operations within Croatia. This relocation strategy has become an established practice as these countries are more attractive to investors. Notable companies with significant investments include Fonoa, with 60 million euros and a relocated headquarters in Ireland, British-Croatian startup Cognisam, with 87.5 million dollars, and PlanRadar, with 69 million euros and a relocated headquarters in Vienna. These substantial investments by companies originally rooted in Croatia highlight the importance of careful evaluation when analyzing data in this context.

Due to the cancellation of low-cost flights, Montenegro loses 82,000 passengers

The announced cancellation of a series of low-cost flights by the two airlines, Ryanair and Wizz Air, in Montenegro from October this year would mean the loss of connections with numerous European cities. Barcelona, Zagreb, Manchester, Rome, Vienna, Frankfurt, Copenhagen, Zurich, and Paris are on the list of flight destinations for which these airlines are canceling flights. According to aviation analysts' estimates, such decisions will lead to Montenegro losing almost 82,000 passengers during the winter period. Speculation reported in the media suggest that the airlines' decisions were caused by the increase in taxes at Montenegrin airports, making these airports uncompetitive compared to other European airports.

BlackPeak Capital aims to invest up to 40 million euro in Croatian SMEs

Bulgarian private equity firm, BlackPeak Capital, has announced plans to invest between 30 and 40 million euros in fast-growing small and medium-sized enterprises in Croatia. Croatia is considered one of the target markets in the Southeast Europe region The firm's investment focus includes sectors such as IT, healthcare, e-commerce, professional services, niche manufacturing, energy efficiency, and waste management. The reason why Croatia is chosen for this investment are multiple. Croatia is seen as country with a thriving tourism industry and highly skilled and educated workforce that is expected to foster entrepreneurship and the development of high-value-added services. Also, the country's recent accession to the eurozone and the Schengen passport-free travel area is anticipated to further support its economic growth as an EU member state. BlackPeak Capital aims to nurture promising Croatian companies and propel them to become leaders not only in the region but also at the European level.

SIMEST as a crucial partner for Italian companies in Serbia

The opening of the office of the Italian company SIMEST is not just a strategic move by Italy to strengthen its presence in Serbia; it represents a deeper commitment. SIMEST aims to lead innovation and provide financial and commercial tools for Italian companies already operating in Serbia or planning to expand their business in the country. While many Italian companies initially expanded in Serbia due to the favorable labor force, they overlooked the volatility of other economic factors that shape the business landscape. With changing economic conditions, including rising inflation, increasing minimum wages, and reduced state subsidies, Italian companies must adapt and understand the country's direction to maintain profitability. The financial support offered by SIMEST will be crucial in addressing current and future challenges. Moreover, looking ahead, Italian companies in Serbia can benefit from participating in the upcoming EXPO 2027 exhibition and establishing connections with companies from markets such as China, as Serbia plans to forge free trade agreements.

The Garden Brewery acquires majority stake in Full Circle

Croatian holding company, The Garden Brewery, has announced its acquisition of a 50.94% stake in Full Circle, a renowned catering company. Full Circle specializes in providing food services for guests at music and street festivals, and this strategic investment marks a significant step for both companies. The Garden Brewery intends to focus on the further development of this segment. The specific financial details of the deal have not been disclosed publicly. However, it is worth noting that Full Circle has enjoyed a long-standing partnership with The Garden Brewery, collaborating on various street festivals throughout Croatia over the years. This acquisition represents a deepening of their existing relationship and a shared vision for future growth. Full Circle's impressive financial performance in the previous year demonstrates the company's success in its niche market and further underscores the potential value of this partnership with The Garden Brewery.