Mongolia's startup scene really took off around 2010, right when the mining boom was making the country one of the world's fastest-growing economies. The country experienced a remarkable increase in its GDP growth rate. That timing wasn't coincidental. As mining revenues poured in, entrepreneurial energy followed, creating a generation of founders who saw technology as a way to solve uniquely Mongolian problems.

Mongolia’s global outlook

What makes Mongolia's startups different? Geography, for starters. Being sandwiched between China and Russia with no ocean access creates constraints that actually shape innovation in interesting ways.

"Our target market is quite different from other countries' markets," explains Bilguun Batsukh from EBRD's Mongolia office. While many European startups look west to Silicon Valley, Mongolian companies naturally turn their attention to Central Asia and Southeast Asian markets.

This reality has pushed local startups to be resourceful. High logistics costs and a small domestic market have led companies to develop solutions that work well in challenging environments. When you're building for Mongolia's unique conditions, you often end up creating something that works elsewhere too.

Fintech to fresh air

Like many emerging markets, fintech dominates Mongolia's startup landscape. This makes sense in a country where smartphones are everywhere and digital adoption has been remarkably fast.

But beyond financial services, startups are tackling distinctly local problems. Ulaanbaatar's winter air pollution has sparked companies developing air purification systems and carbon credit platforms. Mongolia's mining heritage—which still accounts for around 25% of GDP and over 90% of exports—has created opportunities in environmental monitoring and industrial technology.

"Many startups are being built based on market needs and demands," notes Buyanbat Batkhishig from EBRD. "Financial services are in high demand, but we also have interesting startups in carbon credits and air purification filters."

The current cohort of Mongolian startups in EBRD's Star Venture program reflects this diversity: INMO Engineering and NXT are working on health technology solutions, Virtual plus agency is developing media and educational technology, Smart Contract Mongolia is building legal tech platforms, and Startup Airee Felt is creating agricultural solutions

Building in a different environment

But not everything has been smooth sailing. The startup euphoria of the late 2010s has cooled considerably. "The hype started to decline post-COVID, especially after 2023," notes Batkhishig. "The local market is almost filled by some of the main players."

But this maturation isn't necessarily bad news. The startups that survived are becoming genuinely competitive internationally. Several Mongolian companies are now successfully expanding into other markets, proving they can compete beyond their home turf.

One thing that sets Mongolia apart is how startups get funded. Traditional venture capital is limited here. Instead, corporate venture capital dominates. "Corporate venture capital is more active and has more access to financing possibilities for startups," explains Batkhishig. This creates different dynamics than the typical VC-startup relationship you'd see elsewhere.

International support helps bridge gaps. EBRD's Star Venture program connects Mongolian startups with mentors and markets across multiple countries. For companies looking to scale beyond a small domestic market, these international connections become crucial.

What's next for Mongolia?

What's interesting about Mongolia's startup scene isn't just the technology being built, but how it's being built. The constraints of being landlocked and economically dependent on mining have forced entrepreneurs to be creative and pragmatic.

"Young generations will bring more potential," says Batkhishig, pointing to improving digital literacy across the country. With widespread smartphone adoption and a generation that's grown up connected, the foundation for more innovation continues to strengthen.

For international investors, the pitch is straightforward: startups here are still early-stage with reasonable valuations, but they're building solutions tested in tough conditions. If something works in Mongolia's unique environment, it's probably resilient enough to succeed elsewhere.