Founders, investors, and innovators from across Europe met at The ScaleUp Fest 2025 in Budapest to dive into what it really takes to scale smarter amid AI, fintech disruption, and deep tech breakthroughs.
We then joined three standout panels that captured the pulse of the region: AI Business Strategy, CEE Startup Growth & Fintech Investment, and Deep Tech Investment. Each session revealed the challenges and opportunities shaping how Central and Eastern European companies can grow globally.
Speakers: Balogh Petya (STRT), Enis Hulli (e2vc), Marius Istrate (TechAngels / 3VC), and Lenard Horgos (Absolvo Consulting)
Topic: The AI boom has captured the majority of global venture capital - but is it all hype, or the foundation of the next wave of innovation?
Key takeaways:
AI isn’t going to be a winner-takes-all game. Unlike social media or search engines, no single company will dominate everything. Instead, a few big players will provide the core models, while many others build specialized tools and local solutions on top of them.
CEE’s advantage lies in talent. The region isn’t building foundational models, but it boasts a dense concentration of world-class researchers and engineers, making it fertile ground for startups that solve real problems with AI.
Investors want more than prompts. VCs are wary of companies that just wrap ChatGPT. What stands out are defensible applications in niche markets, where AI creates tangible, lasting value.
Smiling capital vs. aggressive capital. A recurring theme was how European investors differentiate themselves with trust and founder-friendly support, even if they can’t always match the deep pockets of Silicon Valley.
The bottom line: In CEE, the smartest AI plays won’t chase hype - they’ll focus on solving urgent, real-world problems with scalable, defensible models.
Speakers: Tamás Jósvai (Tomahawk Holding Plc), Noemi Szabo (Elevator Ventures), Russell Armstrong (Jonas Software), and David Polach (J&T Ventures)
Topic: Scaling fintech in Europe is anything but straightforward. Regulation, costs, and market fragmentation were front and center in this discussion.
Key takeaways:
Regulation is both a barrier and an enabler. Compliance is “ground zero” for fintechs. While local regulations complicate scaling, frameworks like PSD2 and Open Banking also open the door to growth.
CEE has cost advantages and funding gaps. Startups benefit from lower labor and operational costs, but later-stage capital is scarce, making it harder for regional champions to grow beyond Series B.
Customer obsession is critical. Panelists stressed that fintechs must build cultures centered on customer needs and trust, not just compliance.
Smart capitalization beats hype. Investors cautioned founders to avoid over-inflated valuations that can create problems later during exits or follow-on rounds.
The bottom line: CEE fintechs have unique strengths, but success requires balancing regulatory rigor, cost advantages, and customer trust while finding smart capital partners.
Speakers: Karol Szubstarski (OTB Ventures), Juraj Zamecnik (3IPK), Istvan Petak (Genomate Health), and Ivan Gyuracz (Absolvo Consulting)
Topic: Deep tech founders face the longest and hardest road to market, but their technologies often create defensible, high-value businesses.
Key takeaways:
Problem first, product second. Successful founders fall in love with the problem, not just the solution. Patient capital is essential to fund years of R&D before commercialization.
Validation comes through partnerships. Collaborating with OEMs, universities, and strategic players is crucial for credibility and market entry.
Different investor cultures. U.S. investors often back vision and founder quality, while European investors emphasize facts, traction, and revenue — a reflection of capital availability and risk tolerance.
Exit paths are unpredictable. Strategic acquisitions often happen organically as IP matures, rather than through planned processes.
The bottom line: Deep tech is tough tech. CEE startups must balance patient R&D cycles with strategic partnerships and a clear path to validation.
ScaleupFest 2025 underscored that growth in CEE isn’t about following hype cycles: it’s about building sustainable, problem-driven businesses. Whether through AI, fintech, or deep tech, the region’s founders are proving they can compete globally by playing to their strengths: talent, resilience, and creativity.
Let's Talk Growth!
Our consultants help organizations align teams, accelerate pipeline, and scale sustainably across global markets.
Contact us to explore how we can support your growth journey.