Movens Capital, based in Warsaw, is set to support emerging startups in Central and Eastern Europe (CEE) with a new €60 million fund. This initiative aims to bridge the stark venture funding gap prevalent in the region, providing valuable capital and operational support to fledgling companies. The fund represents a strategic response to the challenges faced by startups in accessing sufficient Series A and growth-stage funding, often forcing them to consider relocation or halted growth. Noteworthy is the fund’s focus on innovation sectors such as AI, fintech, and climate tech, highlighting Movens Capital’s broad approach to empowering promising ventures.
Movens Capital’s previous efforts have revolved around successfully leveraging their first fund to support standout startups in the region. In the past, particularly with Fund 1, they garnered follow-up funding exceeding €110 million for their portfolio companies, indicating a significant impact on the local startup ecosystem. The current initiative to launch Fund 2 emerges during a time of declining venture capital investment in the region, a staggering reduction of 23 percent by 2024, underlining the persistent need for such strategic interventions. This venture holds promise for rejuvenating the entrepreneurship spirit in CEE by addressing some longstanding financial challenges.
What are the Fund’s Strategic Goals?
The objective of Fund 2 is to provide financial backing and operational support to around 30 firms in the region. The fund sets out to nurture startups through various stages, from pre-seed to Series A+, with initial investments ranging from €250,000 to €3 million. This approach targets sectors typically known for innovation and rapid growth potential, including healthcare and e-commerce infrastructure. By placing a sharp focus on these sectors, Movens Capital seeks to unlock the untapped potential that resides in the CEE startup ecosystem.
Does Movens Capital Have a Unique Advantage?
Equipped with vast experience as tech operators, the team at Movens brings crucial expertise to the table, including AI and machine learning-driven business insights, pricing strategies, and more. This expertise provides critical support across the investment lifecycle, helping startups not only with financial hurdles but also in building robust products, attracting talent, and preparing for future funding rounds. Support from the European Bank for Reconstruction and Development (EBRD), PFR Ventures, and over 80 tech entrepreneurs bolsters Movens’ credibility and resources, fortifying its mission to elevate regional startups to global competitiveness.
Movens Capital’s dedication is further amplified by its managing partner, Artur Banach, who emphasizes the existing talent within the region and the necessity of operational backing. Movens aims to serve as a launchpad for local founders aspiring towards global leadership by integrating industry expertise and strategic guidance into their funding approach.
Banking on their experiences with both successful startups and exits, such as Packhelp, Movens continues to play a vital role in advancing startups towards international market success. Such strategic investments could propel the CEE region forward in building sustainable tech ecosystems that can attract further global venture capital participation.
Endorsing these ambitions, Anne Fossemalle of the EBRD remarked on their commitment to supporting Movens in nurturing the next tech leaders of the region. The collaboration aims to empower innovative companies to scale and contribute to the broader economic growth and the venture capital ecosystem in CEE.
Movens Capital’s efforts to address funding disparities in CEE reflect broader trends where venture capital actively seeks to support budding regional ecosystems, particularly during fluctuating investment landscapes. This fund could serve as a model for similar regions facing venture capital shortages, illustrating the importance of tailored investment strategies that align with local and global market demands. As the first investments from Fund 2 roll out, the impact of this initiative may set new benchmarks for CEE venture funding strategies.
