By Tihomir Bajić - Fifth Quarter Ventures co-founder and General Partner
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On October 8th, 2024 in Belgrade, I had the pleasure of speaking at Splet; the biggest regional startup conference, where I shared my thoughts on how the Adria region can produce its next unicorns. The title of my talk, “The Next Regional Unicorn,” reflects a topic that is not just aspirational, but one I’m actively working towards every day with Fifth Quarter Ventures, the first international private money VC fund that is focused on this region.

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Our region has already produced some impressive unicorns like Infobip and Rimac in Croatia, Payhawk in Bulgaria, Tenstorrent in Serbia, and of course, the most well-known, UiPath in Romania. But as a year-old fund, we’re focused on the next chapter—creating new global giants from this incredibly dynamic part of the world.

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On-the-ground presence

I’ve been fortunate in my career. I joined several efforts early on that had ecosystem-defining exits. I’ve run product and engineering teams in over 10 countries and spent 10 years on the ground in San Francisco and a similar amount of time in Toronto. I even built a new national securities exchange on Wall Street and in the process helped over 50,000 startups across the globe run their startups more efficiently. But this summer, I made a major life decision. I moved my family full-time to Serbia so I could be on the ground helping build the next unicorn from this region.

Why? Because I believe in the untapped potential here. While San Francisco remains the deep tech global epicenter, the Adriatic region has quickly emerged as a top-notch technical talent ecosystem. My bet is that within our first 5QV fund, we will have not just one but multiple unicorns and I want to be on the ground helping build them. And I’m seeing across our portfolio, expat founders returning home to tap into the talent network. 

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What I’m looking for in startups:

At the Splet Tech conference talk, I shared three things I look for in startups, making sure to challenge conventional wisdom with each point. I promised to be controversial, and I believe it’s necessary if we’re going to push the boundaries of what’s possible here.

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1. Regional founders focused on competitive problem domains

This region has areas of global excellence, and at 5QV focus on five specific domains:

• AI Big Bets: We school top AI researchers and global microprocessor industry experts.

• Dev Tools: Croatia is home to a strong cohort of world-class development tools.

• Open-Source Software: The region’s initial IT was built without access to commercial tech, fostering a culture of developer-driven solutions.

• Industry 5.0 and Robotics: Ex-Yugoslav engineers led infrastructure projects worldwide after the Non-Aligned Movement began in Belgrade. 

• Crypto/Web3: Almost every major blockchain project has a Serbian lead engineer or a team in Serbia or Croatia.

The controversial point I made was that this region hasn’t produced a globally successful B2C app yet (excluding casual gaming and some edtech). So, when I meet founders wanting to pursue B2C projects, I actively dissuade them and encourage a shift to areas where the local talent and understanding are world-class.

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2. Founders who surround themselves with world-class experts and are coachable

I look for founders who are not just brilliant but also humble enough to acknowledge what they don’t know. They should be insatiable learners, continually surrounding themselves with the best global talent. One challenge I’ve seen locally is the “smartest guy in the room” syndrome, where founders are often too confident in areas they know little about.

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The controversial statement I made here was this: I immediately dismiss founders who ask for my time or money but am eager to help those who come to me with a genuine desire to learn. The best ones don’t just ask—they actively seek knowledge and establish connections around the globe. 

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Being from a small country makes the best local founders global in their outlook from day one. That outlook can be superior to Silicon Valley myopia. 

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3. Founders utilizing AI across their entire startup

The third and final controversial statement I made was about AI. If you’re starting a company today or are still pre-revenue, and you’re not embedding AI into every aspect of your business—from generating marketing assets to writing code and automating user engagement—I’m not interested. The future is AI, and the startups that embrace it at every level will be the ones that thrive.

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Regional founders learned the hard way in the 90’s and early 2000’s what it means to be resourceful, scrapy and persevere beyond what seems possible. The AI revolution is giving the entire planet the most powerful resource yet, and I’m betting on my countryfolk to utilize this resource in globally novel ways.

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I hope this post gives insight into what I’m building with Fifth Quarter Ventures and why I’m so optimistic about the next unicorn emerging from this region. The talent is here, the ecosystem is growing, and the ambition is undeniable. Let’s make it happen.

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Let’s build together

With my talk and this post I tried to be clear about what we’re building at Fifth Quarter Ventures, who we want to work with and why I’m incredibly optimistic about multiple unicorns emerging from the Adria region in coming years. The talent pool here is deep and diverse, with a history of perseverance and innovation that spans decades, particularly in sectors like AI, robotics, and software development. The local ecosystem is evolving rapidly, supported by a new generation of founders and technologists who are eager to take on global challenges - and many of us are coming back with rich expat experience.

What excites me the most is the ambition I see in this region. Local kids believe they can be the GOATs in their sport because world MVPs in soccer, basketball, volleyball and waterpolo grew up on the same streets. Local founders are starting to awaken to the same global ambition. When paired with the right mentorship, access to capital, and global connections that funds like 5QV supply, we can propel a new generation to global impact. This isn’t just about creating another unicorn; it’s about transforming the region into a global innovation hub where success stories aren’t the exception, but the norm. Just like we’ve done in team ball sports. 

Let’s make it happen.