Eastern European IT Startups: Overcoming Challenges
In a world dominated by big names, it is quite challenging for IT startups to make it on the market. Even though Eastern Europe delivered several successful stories including Prezi and LogMeIn from Hungary, uberVU and InterAKT from Romania, AVG and Avast from the Czech Republic, Nordeus from Serbia, Filestube from Poland, entrepreneurial experience is still rare in the region. On the other side, Estonia is a great example where the startup success stories have resulted in a boost to the regional startup ecosystem. Other countries in Central Eastern Europe are still waiting for such an evolution. However, an evolution can be observed and in about 20 countries over 800 Internet businesses are growing at various speeds.
The growth is determined by investors which are attracted more and more to this geographical area and by the the investment activities of the local serial Internet entrepreneurs.
What are the biggest challenges?
Adversity to risk.
A conservative mentality that is adverse to risk is the main impediment in launching more startups. Many people prefer to choose a secure job in a big tech company instead of pursuing their dream and funding a startup.
Lack of entrepreneurial education.
This one goes hand in hand with the challenge mentioned above. There is a great need of entrepreneurial education in this part of Europe. Few entrepreneurs made an exit and invested back in the region the money and their experience.
Geographical distance from leading tech hubs
Leading tech hubs offer high value resources, including investors, clients, mentors, advisors. Benefiting from the expertise and the financial resources of investors and mentors is extremely important for startups and can help them avoid risks and transform into successful businesses.
Despite the above mentioned challenges, the startup ecosystem in Eastern Europe is definitely evolving. And with the right support from stakeholders, the chances are high for Central Eastern Europe to become an important hub of IT startups. Among investors, marketing companies can be of great help for IT startups. Hence, let’s see how these can help IT startups.
How can marketing companies help the startups?
Provide consultancy with the marketing strategy and help with implementation.
An appropriate marketing strategy can help a startup from being unknown to a successful story in the shortest time possible. Activities including company positioning, strategy implementation and optimization are essential for a startup when they are fresh on the market.
Help with getting in touch with the right investors.
Startups may have a great idea, but getting the investors they need is many times a big challenge. An experienced marketing company can help with finding the right investors which will be the foundation of the startup’s success.
The bottom line is that startups benefit a lot from the experience of marketing companies, as more as they benefit from investors and a good mix of these two can help any IT startup become successful. And the more experience a marketing company has on the Eastern European market, the better.