Moldova’s startup ecosystem: Interview with Dumitru Alaiba, Deputy Prime Minister and Minister for Economic Development and Digitalisation

In the world of startups, certain cities stand out as global hubs—London, Berlin, and Paris are prime examples. However, entrepreneurship and innovation are not confined to these well-established centres. Across Europe, lesser-known markets are emerging as fertile grounds for startup growth, offering unique advantages such as business-friendly policies, lower operational costs, and untapped talent pools.

Moldova, a Southeast European country on a firm path toward European integration, wants to become an attractive destination for entrepreneurs. The government has taken proactive steps to foster a supportive environment for startups, with initiatives that reduce bureaucratic hurdles, enhance digital infrastructure, and provide financial incentives. A key driver of this transformation is the Moldova Innovation Technology Park (MITP), which has tripled its contribution since its inception in 2015. In 2024 alone, 380 companies from the UK, US, Germany, Romania, Ukraine, and Turkey joined MITP to benefit from its highly competitive 7% single tax. The total revenue of MITP residents reached €365 million in the first half of 2024 and is projected to hit €800 million by year-end.

To gain deeper insight into Moldova’s startup ecosystem, we spoke with Dumitru Alaiba, the country’s Deputy Prime Minister and Minister for Economic Development and Digitalization. In this interview, he discusses Moldova’s evolution as a business-friendly destination, the government’s ambitious initiatives, and what the future holds for the nation’s entrepreneurial landscape.

Moldova is emerging as an exciting hub for startups and innovation in Eastern Europe. What makes the country uniquely positioned to foster a thriving entrepreneurial ecosystem?

Moldova is undergoing rapid change. It is, perhaps, the first time in its history that my country is bravely looking to the future, firm on its European path. And make no mistake, Moldova is the next EU member state. This is our vision. But apart from this, there are clear reasons why Moldova is a very good place to invest, build innovative startups, and do business.

Moldova is not just a market of 2 million people—it is a market of half a billion. Through free trade agreements with the EU, EFTA, UK, and others, our exports are shifting rapidly toward Western markets. Just 15 years ago, 70% of Moldova’s exports were directed to Russia and CIS. Today, the situation is completely reversed. This shows how fast Moldova can adapt.

We are also building a fully digital economy. In 2024, 86% of interactions between the state and entrepreneurs were digital. This has resulted in savings equivalent to 1% of GDP annually due to reduced bureaucracy and digitalisation.

On taxation, Moldova is among a few European countries with zero income tax on retained earnings. We only tax profits distributed as dividends. For IT and BPO sectors, Moldova offers the most attractive proposition in Europe with a 7% single flat tax rate. IT service exports have grown over tenfold since 2015, outpacing regional competitors such as Ukraine, Romania, Estonia, and Latvia.

Moldova is also opening its doors to global talent by removing work permits for citizens from 47 countries, including the EU, US, UK, Canada, and Turkey. We have established favourable conditions for startups through co-working spaces, accelerator programs, and regulatory sandboxes. While we support a wide range of startups, we particularly prioritise AgriTech, HealthTech, EdTech, and EnergyTech.

Over the years, how has Moldova evolved in promoting entrepreneurship, and what significant milestones would you highlight?

Moldova has transformed into a pro-business country through bold reforms. Our government has taken decisive action to deregulate, digitalize, and open markets, creating a more favourable environment for businesses to thrive. In 2024, our startup ecosystem saw ventures raise $7.9 million—twice the amount raised in 2023. Thirty startups attracted investment, benefitting from both private funding and government-backed grants.

Through the 373 program, we have provided over 3.5 billion MDL in affordable financing, supporting 570 businesses and creating nearly 2,000 jobs. Additionally, €1.9 billion is being allocated through the Growth Plan, which aims to double Moldova’s economy over the next decade while accelerating EU integration.

How do you envision Moldova’s role in the global startup and tech ecosystem over the next decade?

We see Moldova as a leader in technological innovation in Eastern Europe. We aim to create a thriving entrepreneurial ecosystem where startups can scale internationally. Moldova’s rapid digital transformation, bold economic reforms, and integration with European markets will drive this progress. As a small but resilient country, we have the opportunity to leapfrog traditional barriers and advance reforms at an accelerated pace.

What investments or initiatives are underway to enhance Moldova’s digital infrastructure and connectivity?

We are implementing major digital transformation projects, including EVO, an integrated platform that simplifies public services. Moldova’s participation in the Digital Europe Programme also allows us to access funding for AI, advanced digital skills, and overall digital transformation.

How does the government collaborate with private sector companies to drive tech innovation?

The Moldova Innovation Technology Park (MITP) is one of our biggest success stories. It offers a flat 7% tax regime for its residents, making Moldova one of the most attractive destinations for IT companies. With over 2,200 resident companies, 23,000 employees, and a turnover of over 13 billion MDL in 2024, the MITP has driven exponential sector growth.

What are the main challenges Moldova faces in growing its tech and startup ecosystem, and how is your administration addressing them?

While Moldova’s startup sector has seen impressive growth—generating over $40 million in revenue in 2024 alone—access to early-stage funding remains a challenge. To address this, we are improving our regulatory framework, expanding access to financing through public-private partnerships, and strengthening collaboration with international investors.

Which tech verticals or trends present the greatest opportunities for Moldova?

Moldova has strong potential in IT and software development, AI, cybersecurity, AgriTech, and FinTech. Additionally, we are a regional leader in digital public services and e-governance, which attracts investment and enhances business efficiency.

When you think about Moldova’s journey in tech and startup innovation, what excites you the most right now?

Right now, what excites me the most about Moldova’s journey in tech and startups is the momentum we’re building as an emerging ecosystem. We’re moving from an emerging startup ecosystem to a dynamic, globally connected hub with real success stories. The numbers are growing and speak for themselves—our startups are generating millions in revenue, securing international investments, and scaling beyond borders. 

The growing interest in Moldova’s IT sector and the rise of a new generation of entrepreneurs are particularly exciting. I invite everyone to the Startup Moldova Summit 2025 on April 16 to explore first hand Moldova’s fast-growing innovation ecosystem.

What advice would you give to someone just starting their entrepreneurial journey?

One of the best pieces of advice I have received—and one I would share with any aspiring entrepreneur—is to just do it. Not because it is easy, but because you believe in an idea. Because there is a reason why you won’t simply get a job and prefer to take the risks and uncertainties an entrepreneur faces. Because you value the freedom that comes with it. Building a business is never a straight path. There will always be challenges, setbacks, and unexpected turns. However, those who succeed are the ones who see obstacles as opportunities to innovate and grow.

For Moldovan entrepreneurs, my advice is simple: be bold, embrace change, and think globally. Our country is evolving rapidly, offering more opportunities than ever before, from government support programs to access to European markets. Take advantage of these resources, build strong networks, and always seek to improve your product or service. 

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