- Movens Capital, a Warsaw-based venture capital firm, has launched a €60 million multi-stage fund called Fund 2 to invest in tech founders from Central and Eastern Europe (CEE).
- Fund 2 will provide initial investments ranging from €250,000 to €3 million for startups at the pre-seed, seed, and Series A stages, with plans to make around 30 investments across various sectors.
- The European Bank for Reconstruction and Development (EBRD) has committed €10 million to Fund 2, reinforcing its commitment to enhancing the competitiveness of enterprises in the region by providing vital venture capital.
- The launch of Fund 2 follows the success of Movens Capital’s first fund, which supported numerous high-potential startups in the region and helped organize over €110 million in follow-on funding for its portfolio companies.
Why it matters: Despite steady growth in startup creation and ecosystem value, CEE still faces a significant venture funding gap, especially for Series A and growth stages, often forcing founders to either relocate or pause their growth. Movens Capital aims to address this funding shortfall and support the growth of innovative tech companies in the region.
The details:
- In 2024, venture capital investment in CEE dropped by 23%, and the number of deals has declined by over 70% since 2022.
- The gap between Western Europe and CEE is particularly striking in terms of per capita VC investment, with €85 in Western Europe compared to just €13 in CEE.
- As former tech entrepreneurs, the Movens Capital team provides meaningful operational expertise and strategic guidance to their portfolio companies, leveraging a community of top-tier tech executives and advisors.
- Fund 2 is backed by the EBRD, PFR Ventures, and over 80 startup founders, tech operators, and seasoned entrepreneurs.
What they’re saying:
- “We are delighted to back Movens’ new fund and help empower the next generation of tech founders in central and eastern Europe. Supporting the venture capital and private equity ecosystem is a key priority for the Bank, and we are confident that this partnership will help scale new, innovative companies.” – Anne Fossemalle, Director of Equity Funds at the EBRD
- “Movens Capital is a launch pad for ambitious CEE tech founders aiming for global leadership. As former tech entrepreneurs, we actively support our portfolio companies with operational expertise and strategic guidance. Backed by a community of top-tier tech executives and advisers, we leverage their experience and networks to help founders achieve lasting global success.” – Artur Banach, Managing Partner at Movens Capital
The bigger picture: Czech investors, such as Kaya, a Prague-based venture capital fund, are also increasingly eyeing Polish start-ups, underscoring the growing appeal of the country’s start-up scene and the potential for substantial growth and innovation in technology sectors.
