Investment in Slovenian startups at its lowest level in years: "We are missing almost every opportunity"
According to the latest Silicon Gardens fund report , investment in the Slovenian startup ecosystem has reached its lowest level since 2021. This trend raises more questions than it answers within the tech community, ranging from the availability of venture capital to broader systemic issues that have persisted for over a decade.
Regarding the state of the ecosystem, we share the views of Andraž Logar, President of the Slovenian Technology Forum and founder and CEO of 3fs. He shared his thoughts with Bloomberg Adria in an article titled The regional startup scene under the microscope
"Not enough capital, but that's just the beginning of the problem"
Investment in the startup and technology sector has declined, hitting its lowest point since 2021 last year.
"I largely attribute this decline to the fact that there is simply not enough venture capital in the market. But that is not the only reason. There are a whole host of reasons for Slovenia, which I know best."
Andraž Logar highlights demographic shifts as a key factor, noting that the generation entering entrepreneurship is significantly smaller than it was 20 years ago, alongside changes in global investment flows.
"Today, by some estimates, AI 'gobbles up' as much as 75% of venture capital. This is being felt everywhere, including here."
He adds that the Slovenian ecosystem is also trapped in a paradox: successful companies are now developed enough to actively attract talent, which results in fewer people transitioning into startups.
A system that cannot keep up with its own opportunities
Andraž Logar also points to systemic obstacles that have been recurring for years:
• tax regulations and the taxation of stock options,
• legal forms of companies,
• the limited role of the state in venture capital,
• difficulties in hiring foreign nationals, and
• the education system.
"In reality, we are missing almost every opportunity. Even in AI, where just a few days ago we marked 56 years since the first Slovenian activities in this field."
"There is progress, but it is too slow."
"Past governments deserve credit.
There have been some shifts, primarily incremental legislative changes. But that is not enough."
In his opinion, the changes were often too small and too late:
"These are things that should have been resolved 10 or 15 years ago. We were already raising these issues back then, but there was almost no response."
As an example, he also highlights administrative barriers that continue to hinder investment:
"The inability to implement remote notarization is a trivial but very real obstacle. Investors have to physically come to Slovenia to sign articles of association."
Expectations for the new government
"At STF, we have read and studied the coalition agreement. But what matters is what actually gets implemented."
In his view, the new government has four years to make up for lost time, but only if it focuses on concrete measures rather than strategies.
Among the key priorities, he highlights:
1. Tax regulation of stock option compensation
"This is one of the most critical points. The current system simply does not work."
2. Leaner share structures for startups
According to him, these are relatively simple changes that would significantly facilitate the founding of companies.
3. Education reform
"The trends are extremely negative. It’s a miracle the system is still functioning."
4. Knowledge transfer from academia to industry
He cites Scandinavian countries as a positive example:
"In Sweden, universities establish their own venture capital funds. That is the direction we should be heading."
"AI is a new opportunity, but we could miss out on this one too"
Andraž Logar warns that Slovenia risks falling behind in the next major technological cycle as well: artificial intelligence.
"We have a history of research in this field, but the question is whether we know how to translate it into industry."
Conclusion
According to the latest data, the Slovenian startup ecosystem is facing a decline in investment, but Andraž Logar points out that the numbers only tell part of the story. Behind them lie demographics, the global reallocation of capital, and long-standing systemic inadequacies.
The key question that remains is not just how much capital is available, but whether Slovenia is actually creating an environment where enough new companies can emerge to absorb it.
