By Lilly Drumeva-O’Reilly
Rumen Iliev, a partner at Launchub Ventures, is at the forefront of venture capital investment in Southeast Europe, backing technology startups with global ambitions. He also serves as a strategic advisor to the Bulgarian Entrepreneurship Center Foundation, supporting initiatives in education and the IT sector.
Iliev holds a Master’s degree in Finance from the University of Economics in Prague and has been active in venture capital since 2012. His mission is straightforward: to help entrepreneurs turn ambition into tangible results.
How is artificial intelligence reshaping the technology landscape and startup ecosystem?
Artificial intelligence is fundamentally lowering the barriers to building a company. What once required large teams can now be achieved by just a handful of people. The result is a surge in startup creation—but also a sharp rise in competition.
AI is already deeply embedded in software development. In our portfolio, more than half of the code is now written with the assistance of AI tools. In some cases, that figure approaches 100%—and these are not experimental projects, but robust business solutions used by clients worldwide.
At the same time, AI is redefining what makes a strong startup. A compelling product is no longer enough. If a company’s edge lies solely in its code, it can be replicated. Sustainable advantage increasingly comes from proprietary data, deep market insight, strong distribution, or tight integration into customers’ workflows.
What impact are the conflicts in Ukraine and the Middle East having on businesses?
If these conflicts persist, businesses are likely to face continued pressure from energy prices, supply chain disruptions, currency volatility, and tighter financial conditions—including higher capital costs and interest rates, at least in the near term.
The impact will vary across sectors, but it is something every company needs to factor into its strategy. At the same time, a stronger US dollar and a weaker euro can benefit companies that generate revenue in dollars while maintaining euro-denominated cost bases in Bulgaria.
How has the adoption of the euro affected Bulgarian entrepreneurs?
It is still too early to fully assess the impact of euro adoption.
On the positive side, companies can expect lower currency conversion costs and reduced banking fees. However, as long as Bulgaria remains on the grey list for money laundering, some of the anticipated benefits may not fully materialize.
Are there Bulgarian startups with the potential to become the next unicorns?
There are—and there will be more. We are likely to see companies with leaner teams, lower cost structures, and the ability to scale globally at unprecedented speed. This creates the conditions for a new generation of unicorns—ones that look very different from those of the past.
In many ways, we are at the beginning of one of the most consequential investment cycles in recent years, as the AI wave continues to build momentum.
What are your priorities for the rest of the year?
Our primary focus is the launch of a new fund. We have already begun deploying capital and are in the process of finalizing our first investments.
At the same time, we continue to raise additional capital. The current market presents a paradox: it is an attractive moment to invest, yet returns in this asset class are not immediately visible, which makes some private investors hesitant.
Alongside existing backers such as EIF and IFC, we expect the European Bank for Reconstruction and Development (EBRD) to join the new fund.
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