garaža investor report

Garaža is a community of tech startup founders from Serbia. Pay it forward culture is the basis, and all of the members invest their time to help each other in various domains.

Garaža creates programs that help startups gain knowledge and experience firsthand from other tech founders, operators, and domain professionals.

One of the yearly activities of the Garaža is the 'investor report'—mapping the usual startup challenges through interviews with the VCs.

The 2024 report's focus is identifying key areas where Serbian startups can improve to attract investments more easily, especially those aiming for venture capital rather than bootstrapping.

The total invested capital in local startups has nearly doubled compared to last year, indicating growth in later-stage funding. However, challenges remain similar—lack of effective sales strategies, limited market validation, weak go-to-market approaches, and an overemphasis on the local market.

On the positive side, more founders from the diaspora are returning to Serbia, bringing valuable knowledge. An increasing number of local founders are spending time in San Francisco, returning with broader ambitions and a changed perspective, with some even relocating there.

A key trend is the growing use of AI in products and pitches, but many startups struggle to demonstrate its real value and competitive edge. Investors emphasize the importance of strong data collection and differentiation, as well as the need for thorough market research and customer validation before development.

The report has been developed through discussions with investors active in the region, whether they held office hours with us, participated in SPLET, or had meetings with our startups in 2023 and 2024. This approach ensures that the insights in the report reflect the real challenges and expectations of investors present in the region.

Read more here.