This blog post draws on a deliverable of the INFIMO project (D2.1), which offers an in-depth examination of Georgia’s startup ecosystem. While this post highlights the ecosystem’s current state and its growth trajectory, the full document delves deeper into mapping key stakeholders and identifying opportunities for more targeted engagement.
But first, what exactly is a startup? Startups are innovative, fast-growing companies that play a transformative role in modern economies. They generate fresh ideas, create jobs, and drive industries forward with disruptive technologies and business models. Globally, startups are key players in the ongoing digital transformation, acting as catalysts for economic and societal development.
In Georgia, the startup ecosystem is still in its early stages, but it has shown notable progress in recent years. The foundation of this movement was laid in 2016 with the launch of the Startup Georgia program by the Ministry of Economy and Sustainable Development. This initiative marked the beginning of Georgia’s structured efforts to foster innovation and entrepreneurship. Today, Tbilisi is at the heart of this growing ecosystem, serving as the country’s entrepreneurial hub. Its steady rise is evident in the Startupblink Startup Ecosystem Report 2023, where Tbilisi advanced 23 positions to rank 359th globally—a clear indicator of momentum.
Startup ecosystems grow through a phased process, much like ecological systems. According to Startup Genome, these ecosystems progress through four key phases: Activation, Globalization, Attraction, and Integration. Each phase has distinct characteristics, resource needs, and developmental milestones, requiring careful planning and sustained effort to transition to the next stage.
Georgia’s ecosystem is still in the Activation phase, characterized by its youthful energy and enthusiasm for innovation. The journey to more advanced stages will require significant investment in infrastructure, collaboration, and clear policy frameworks.
Driving Forces Behind Georgia’s Growth
One of the most significant drivers of Georgia’s progress is government support. Institutions like the National Bank of Georgia (NBG) and the National Communications Commission (ComCom) have implemented programs and frameworks to promote innovation. Initiatives such as Open Banking, regulatory sandboxes, and MediaLab provide startups with opportunities to test their ideas locally while aiming for global scalability.
These reforms have been particularly beneficial for fintech and telecommunications startups, offering a fertile testing ground for new products and services. As these programs mature, they promise to further accelerate Georgia’s development into a vibrant startup hub.
Georgia’s startup ecosystem operates within a global landscape shaped by emerging trends. The rise of regional innovation hubs and the impact of deglobalization are reshaping the startup world. Tbilisi’s ability to establish itself as a strong regional player will depend on balancing proactive government support with openness to international collaboration and opportunities.
Though Georgia’s startup ecosystem is still evolving, its commitment to fostering innovation and entrepreneurship is clear. The next steps include building robust infrastructure, deepening partnerships between stakeholders, and creating a conducive environment for startups to thrive. With these efforts, Georgia has the potential to establish itself as a regional leader in entrepreneurship and innovation.
To learn more about Georgia’s startup ecosystem, including the detailed mapping of stakeholders and additional insights, we encourage you to explore the full document in CORDIS.