Tech startups and other businesses in Bulgaria and elsewhere around the region are getting cash injections from a program called the Joint European Resources for Micro to Medium Enterprises (JEREMIE).

This European Commission initiative works with the European Investment Fund to enhance financial access for small businesses. Countries in the European Union (EU) can take the program's allocations and use them for venture capital purposes to create new businesses or expand some that are already active. It can help these smaller companies perform research and development, innovate, and share technology. In general, the program promotes job creation in the regions where it's implemented.

The Startups in Bulgaria Research Report from SeeNews shows that the JEREMIE program used two investment funds, Eleven and Launchub, to handle $21.4 million from 2012 to 2015.

The JEREMIE funds are registered in Bulgaria, but much of the financial assistance actually comes through companies based in the Netherlands.

Startups and SMEs receive between $32,000 and $213,900 each, based on various factors.

The report analyzes net profits of the startups, and discusses issues surrounding solvency and liability for these companies. It also presents some interesting findings. For example, after peaking in 2014, the number of founded startups fell significantly the next year. In 2015, the majority of new companies did not have positive net revenues.

One element that researchers measured is the “cash runway” of each small business. Looking at cash runways and burn rates shows investors whether a company is likely to survive through years of negative net profits and emerge victorious on the other side, as they bring products and services to market and start to generate revenue.

As for the financial health of startups mentioned in the report, several selected companies declined to respond to press questions. However, Balkan Business Wire spoke with Nancy Mata about the struggle that young tech companies go through to attract funding. Mata is co-director of the entrepreneurship minor at Millersville College in Lancaster, Pennsylvania.

Mata said one avenue open to young entrepreneurs is the world of social media.

“Today’s young entrepreneurs understand social media and are using it to attract funding for their startup business,” Mata said. “Investors are looking at how many followers they have and what they are saying about their startup business.”

Another feather in a young tech startup’s cap, she said, is design prowess.

“(The startups) totally get that design is important, so you’ll see them bringing in a co-founder who is a designer,” Mata said. “Or they’ll bring in a designer with their first 10 employees. I think for the early generation of entrepreneurs, design wasn’t so important. So they’re catching up now.”

In addition, Mata said, some SMEs are trying to acquire funding through social media so that they can go back to the same investors for multiple rounds, something that she said is not usually feasible through angel investors.

“Young entrepreneurs are looking for investors who get what they are doing and are creating partnerships that are meaningful,” Mata said, describing the current environment where a firm’s journey can be just as important, or even more important, than what it offers on a market. “Experiences are more important than products now. In fact, experiences are products these days."