The startup ecosystem of Georgia

22 October, 2021

In Georgia, still, there are not that many startups that are known worldwide. However, there is an initiative — both from the entrepreneurship side and from the side of the government and non-governmental organisations. Thanks to this, many projects have reached success on the markets of Georgia, on the markets of the whole region and even world markets. Here are some facts about how innovative entrepreneurship develops there.

  • A special governmental agent — Georgia’s Innovation and Technology Agency (GITA), a project of the Ministry of Economy and Sustainable Development of Georgia. This agency serves as the main executor of informational and technological policies of the state, it manages trainings on the mobile and web-development in 9 thematic fields.

  • A special state economic strategy “Georgia 2020” with a subsection devoted to innovations and technologies has been developed and is being implemented.

  • A few years ago, there were opened two technological parks in Tbilisi and Zugdidi. Also, in recent years, a few innovative centres and laboratories have appeared in the country as well as more than twenty Fab-Labs.

  • Georgia has good positions in world entrepreneurship ratings. So, in the ranking of the ease of doing business of the World Bank Doing Business for 2019, Georgia occupies the 6th position. In 2019, Georgia ranked 16th in the ranking of the best countries for business, compiled by the European Chamber.

In The Global Information Technology Report (GITR), Georgia increased by 29 positions from 2011 to 2016 — from 88th to 59th, and 140 countries participated in the ranking. According to the data for 2018, Georgia occupies 66th position in this rating.

In The Global Information Technology Report (GITR), Georgia increased by 40 positions from 2011 to 2016: from 98th to 58th.

In the Global Innovation Index, Georgia was ranked 69th out of 129 countries in 2017. In 2019, Georgia is ranked 48th in the same ranking.

TOP of Georgian startups

The most popular startup vectors in Georgia are fintech, social media, SaaS. I made a compilation of the most interesting startups that are already being implemented and are making themselves known on the market.

Swoop

An E-commerce startup — a service that is launched on the Georgian market and presents a resource that collects interesting information for consumers about discounts, great offers, promotions in such areas as food, leisure and entertainment, personal care, sports, appliances, furniture, travel.

Cnick — “smart rings”

A multifunctional ring that serves as a pass and contains personal data about the owner (blood type, previous diseases, allergic reactions). Now it is sold on Amazon, the product is popular in the USA (60% of all sales) and in Asia (40% of sales).

The startup was created by students of the Free University of Tbilisi. The data in the ring is entered and updated through the application on Android. The project received funding from the “Startup Georgia” program.

SpotThatFire

A service for detecting fires in woods at early stages. With the help of an application, any person with a smartphone and Internet can warn about the oncoming natural disaster. The information along with the geolocation is automatically transmitted to the local emergency response service.

Shift Technologies

An online p2p-marketplace for buying and selling used cars. This startup is launched in the US and has already attracted $110 000 000.

The service promises customers to deliver their chosen car for a test drive to their residential area, ensures that all the cars on its website are strictly selected according to their technical condition, it also promises assistance with processing documents and financing options if the client doesn’t have enough money.

The service promises to sellers promptly — within a few minutes — to give the market value of the car as well as to help with paperwork.