Croatia: A Historical Backbone of Resilience and Opportunity

Croatia’s history is defined by resilience and adaptability, traits that naturally align with the entrepreneurial spirit. Originally part of the Roman Empire, Croatia grew through centuries of influence by various empires and regimes—from the medieval Croatian Kingdom to the Austro-Hungarian Empire, and later as part of Yugoslavia until its independence in 1991. This complex history has cultivated a society that values endurance and adaptability, valuable characteristics for entrepreneurs.

Since joining the EU in 2013, Croatia has enjoyed expanded trade, investment, and access to European innovation networks. Croatia’s strategic position—on the edge of Central Europe, the Balkans, and the Mediterranean—positions it as a bridge between regions, offering unique access and insight into these diverse markets.

The Croatian economy, once heavily reliant on tourism, has now diversified, with a renewed focus on innovation and technology. For startups and foreign investors, Croatia offers a unique combination of European integration with the resilience and ambition of an emerging market.

The Legacy of Nikola Tesla: A Cultural and Entrepreneurial Inspiration

Nikola Tesla, born in Smiljan, Croatia (then part of the Austro-Hungarian Empire), remains one of the most revered figures in Croatian history and culture. Tesla’s contributions to electricity, electromagnetism, and wireless communication technology were groundbreaking, making him one of the most influential inventors in history. Tesla’s relentless dedication to innovation, often against significant odds, embodies the resilience and creativity that resonate deeply in Croatia’s modern entrepreneurial ecosystem.

Tesla’s legacy is more than historical—he symbolizes the ambition and ingenuity that drive Croatian innovation today. Croatians are immensely proud of Tesla, and his influence permeates Croatian culture, from academic curriculums to entrepreneurial programs. Startups and innovators in Croatia are often inspired by Tesla’s unyielding drive to push boundaries, a mindset that is visible in Croatia’s own advancements in renewable energy, electric vehicles, and applied engineering.

Tesla’s influence also shapes Croatia’s approach to creativity and risk-taking. Rimac Automobili , for instance, can be seen as a modern homage to Tesla’s vision. Founded by Mate Rimac , the company has earned international acclaim for its electric hypercars and advanced automotive technologies with such success that they acquired Buggati from Volkswagon just a few years ago. Rimac’s rapid growth exemplifies how Croatia’s innovators, inspired by Tesla, are now pioneering advancements in high-impact fields like renewable energy and engineering, rather than following established paths in tech.

Croatia’s Role in Engineering, Renewable Energy, and Applied Technology

While Croatia has yet to rival some Western European nations in sheer technological output, it stands out in fields where technology is applied with precision and impact. Engineering, energy, and automotive technology are strong areas where Croatian companies are breaking new ground. Infobip , what you might call a unicorn in their accomplishment providing communication as a service, draws from the intrinsic challenges of the region while embracing what really makes startups successful despite odds, “I would say the disadvantage, looking backwards, is a big advantage for us,” Silvio Kutic said of being based in Croatia. “We went international almost from day one.” ? That embrace?? Changing the world means starting with that in mind rather than seeking validation or customers from your backyard.? ?The country’s focus on renewable energy and energy efficiency aligns with its global environmental priorities, and they’re already leading the way in AI as it continues to emerge from still fresh innovation.? and its solar and wind energy industries are both growing sectors.

Rimac Automobili is perhaps the most notable example of Croatian engineering prowess on the global stage. The company’s electric hypercars have set records and attracted partnerships with automotive giants such as Porsche. Rimac’s impact goes beyond automotive technology; it has sparked a renewed interest in engineering and manufacturing in Croatia, encouraging more startups to explore high-tech manufacturing and sustainable energy solutions, companies such as Gideon, developing autonomous warehouse robots in their work with AI and NVidia.

Croatia has strengths in fields like pharmaceuticals, agriculture, and medical technology. Companies like Infobip, demonstrate that the culture and economy is producing globally competitive and valued companies. Rather than relying on a generic “technology sector,” Croatia has fostered a diverse innovation landscape, where engineering and applied technology are leveraged in unique ways to create impact across industries.

Venture Capital, Government Initiatives, and the Startup Ecosystem

Croatia’s venture capital ecosystem is evolving, though it remains smaller compared to those in Western Europe or North America. Recent years are experiencing a significant uptick in venture capital availability and government initiatives supporting startups; funds such as FRC, South Central Ventures , Silicon Gardens , 5th Quarter Ventures, and SQ Capital provide critical funding and mentorship to startups, aiming to change the world through entrepreneurship and innovation.

The Croatian government, too, has been instrumental in fostering a more conducive environment for startups. The Croatian Bank for Reconstruction and Development (HBOR) offers financing programs tailored to small businesses and entrepreneurs, and programs like “Startup/Spin-off companies of young researchers” by the Ministry of Science, Education and Youth offers grants up to 200k EUR to young researchers for starting their deep-tech startups. Croatia’s membership in the European Union grants access to EU funding initiatives like Horizon Europe, which supports research, innovation, and SME growth.

“Croatia is famous for two things: a great national soccer team and a breathtaking Adriatic sea with beautiful islands. But Croatia has much more to offer. Being a constant underdog historically empowered Croats with a strong survival instinct, innovative mindset, defiance, and the ability to make something great from nothing. Carried by the boldness of great tech pioneers like Damir Sabol and great educational support at the Faculty of Electrical Engineering and Computing (FER), the Croatian tech and startup scene blossomed in the last 20 years. Now, having two unicorns, several big exits and a functioning ecosystem in which everybody celebrates others’ success like their own, Croatia is on its way to having its third thing to be famous for – startups and technology.”

– Matija Srbic, Managing Director of Nuqleus & Coordinator at Innovation Centre Nikola Tesla

Furthermore, cities like Zagreb, Split, and Rijeka are now home to coworking spaces, accelerators, and startup hubs. These ecosystems encourage networking and collaboration, essential for scaling innovation. The Croatian Inventors Network has also been active in linking Croatian innovators with international resources, especially in neighboring EU countries.

A Work-Life Balance, Vibrant Culture, and Digital Nomad Appeal

Croatian culture is a significant draw for entrepreneurs and digital nomads alike. Croatia balances a Mediterranean lifestyle, with a laid-back attitude and strong community bonds, with a serious work ethic. This makes it particularly appealing for those seeking a work-life balance, as Croatia offers the vibrancy of coastal towns like Split and Dubrovnik alongside the urban energy of Zagreb.

Dubrovnik, known as a UNESCO World Heritage Site and a filming location for “Game of Thrones,” along with other coastal cities, has attracted digital nomads who find the scenic beauty, affordable cost of living, and well-connected infrastructure highly appealing. Croatia recently introduced a digital nomad visa, making it easier for remote workers to live and work in the country, tapping into a growing trend of flexible, location-independent work.

Working with Croatia: Building Relationships for Success

To work effectively with Croatia, it’s important to understand the country’s relationship-oriented business culture. Croatians value trust and often prefer to establish strong, personal relationships before conducting business. Networking events, industry conferences, and startup gatherings are common in Zagreb, Split, and other hubs, and they are excellent ways for international entrepreneurs and investors to build local connections.

For international companies and investors, Croatia offers access to a skilled and multilingual workforce, competitive operational costs, and a favorable geographic position within the EU. With its growing startup ecosystem, Croatia is an emerging but reliable partner, especially for ventures in high-tech engineering, renewable energy, and sustainable tourism. The key to success lies in respecting Croatia’s unique mix of cultural heritage, innovation mindset, and emphasis on collaboration.

Croatia’s readiness to not only follow but also set the newest technology trends is shown through its first high-tech venture builder Nuqleus. Founded in 2022 by the Faculty of Electrical Engineering and Computing at the University of Zagreb (FER), Croatia’s leading research institution, Nuqleus is currently a focal point of the Croatian high-tech ecosystem; the Croatian Bank for Reconstruction and Development (HBOR), with the European Investment Fund, was instrumental in the country’s shift in this direction, with participation in the kick off of their first so-focused VC. With that, Nuqleus is focused on creating and supporting high-tech startups founded by researchers and scientists. To extend its support to its alumni startups, Nuqleus is organizing its first investment readiness bootcamp. With engagement from the United States, myself among them, we’ll be working together to serve startups through pitch improvement, fundraising strategies, go to market work, and global expansion of high-tech startups in particular. U.S. experts Michael Poisel (PCI Ventures, 美国宾夕法尼亚大学 ), Karina Sotnik (WorldUpstart), Glen Gaddy ( Robin Hood Ventures ), Joe Steensma ( Washington University in St. Louis ), and I, with local ecosystem champions like Ana Barjasic (Connectology), Pedja Predin (5th Quarter Ventures), Vedran B. (South Central Ventures), Izabel Jelenic (Infobip), Vedran Cindri? ( Treblle ), Josip Cesic (Gideon), and Matija Srbic (Nuqleus) are working in concert in a wonderful reflection of how startup ecosystems best mature.?

Nuqleus’ mission is to put Croatia on the world’s high-tech map and a showcase event like this one is a great way to deep-dive into the best of what this country can offer and start building trustworthy relationships on which this country lays.

Croatia’s Unique Value as an Innovation Hub

Croatia combines historical resilience, an inventive engineering tradition, and a supportive government with the allure of Mediterranean lifestyle. From Nikola Tesla’s legacy to Rimac Automobili’s breakthroughs, Croatian innovators have repeatedly shown a knack for applying technology in transformative ways. Entrepreneurs and investors from around the world are finding Croatia not only a profitable but also an inspiring place to collaborate and innovate.

For those willing to embrace Croatia’s blend of tradition and modernity, it offers a compelling, supportive environment for startups and ambitious ventures. As the country continues to expand its startup ecosystem, build partnerships, and cultivate a globally-minded workforce, Croatia stands ready to welcome those who share its passion for progress and innovation.