Shelly Group's successful IPO exemplifies the potential for companies in Emerging Europe to leverage public markets for growth capital, challenging traditional funding perceptions.

Target Information

The target in this context is **Shelly Group**, a leading smart home and IoT innovator based in Bulgaria. This company has successfully transformed from a private startup into a publicly traded leader in a challenging funding landscape. Shelly Group's notable journey reflects not only its own resilience and innovation but also highlights the untapped potential within Emerging Europe for businesses willing to embrace public markets early in their growth trajectory.

Industry Overview

The capital markets in **Emerging Europe**, often referred to as Central and Eastern Europe (CEE), are characterized by a severe funding gap compared to their Western counterparts. Current data indicates that venture capital and private equity investments in this region are 8-11 times lower than the European average. This disparity is further emphasized by the small total market capitalizations of local stock exchanges, which range from 2-7 times lower relative to GDP when compared to Western Europe.

Despite this, there is an encouraging shift underway as stakeholders begin to recognize the potential of utilizing public markets as a source of growth capital rather than merely an exit strategy. Historically, founders in CEE have