Local company or Delaware for CEE startups?
Mostly locally. Of the CEE founders who applied to BADideas in 2025 and 2026 so far and named their company, 69% had it in their own country and 14% in the US. Only 1% of CEE applicants in 2026 mentioned Delaware. Most never name their company. Those who do more often have a company abroad.
The figures
| Where CEE founders' companies are registered, 2025 to 2026 (to date) | Share |
|---|---|
| A company in their own country | 69% |
| A company in another CEE country | 8% |
| Delaware or elsewhere in the US | 14% |
| The UK | 8% |
| Elsewhere | 2% |
In BADideas application data, the most common company outside a founder's own country is Estonian: 44% of those registered in another CEE country used an Estonian OÜ.
What is changing
| CEE applicants | 2025 | 2026 (to date) |
|---|---|---|
| Mentioning a Delaware company or move | 2% | 1% |
Few founders name their legal entity, so the split is not shown by quarter.
Across CEE
CEE founders who applied in 2025 and 2026 so far. We show each country with enough applicants; smaller countries count only in the CEE row.
| Where the founder is based | Company in their own country |
|---|---|
| All of CEE | 69% |
| Baltics | 80% |
| Latvia | 77% |
| Estonia | 80% |
Company in their own country: highest in Estonia (80%), lowest in Latvia (77%).
What it means for you
- Incorporate where you are. Most CEE founders raising pre-seed do; local investors know how to invest in local companies.
- Move to Delaware when a US investor asks, not before. The move costs money and time, and is usually done at seed or Series A.
- Check the local rules for SAFEs and options. They differ by country; ask before choosing the instrument.
- Keep the structure simple. One company, clearly owned, is easier to invest in than a holding structure across countries.
Related questions
Do startups in CEE flip to Delaware before raising?
Rarely: 1% of CEE applicants in 2026 so far mentioned a Delaware company or a plan to move to one.
Is an Estonian OÜ common for founders outside Estonia?
It is the most common choice for founders who register outside their own country within CEE: 44% of them used one. Most founders still register at home.
How we measured it
- On this page: The company is the legal entity the founder names; its country is read from the company form (OÜ, SIA, UAB and so on) or the country stated. Few founders name their entity, so the split pools two years.
- Updated: 27 September 2026.
BADideas.fund, "Local company or Delaware for CEE startups?", updated 27 September 2026. https://badideas.fund/answers/incorporate-locally-or-delaware-cee
Read next
- How much do pre-seed startups in CEE raise?
- What help do pre-seed VCs give CEE founders?
- Equity, SAFE or convertible at CEE pre-seed?
Who we are
We are a pre-seed and seed fund for founders in Central and Eastern Europe. We have built and sold companies ourselves, and since 2022 we have backed more than 40.
We back founders who see something about their market that others do not see yet. They want to change how a whole industry works, and they start small.
Good founders rarely fail on the idea or the product. They fail on selling it. We give your company hands-on help from go-to-market operators who grew Zendesk, Square and Scale AI.