Rockaway Ventures, based in Prague, is capturing much attention with its recent announcement of a €55 million fund aimed at tech startups in conventional industries. As the digital economy burgeons, this strategic move seeks to address growing demands across varied sectors, including energy and defense. The fund not only represents a significant capital injection but also signifies a pivot in investment strategy to embrace technologies with dual uses. The shift is indicative of the broader trend where tech startups seek to reshape traditional industry dynamics.
Over the years, Rockaway Ventures has demonstrated a keen interest in dynamic tech environments. In earlier phases, it placed bets on sectors like e-commerce and travel tech. This evolution opens a discussion on how venture capital funds adapt to the changing technological landscape, emphasizing sectors that are ripe due to geopolitical shifts and global trends. This is a marked change from earlier times when venture capital entities faced challenges due to economic fluctuations.
What Drives the Interest in Deep Tech?
Interest in deep tech has seen a resurgence after a challenging period for venture capital funding. Following a dip, recovery started in 2024, primarily propelled by advancements in technology such as AI. Investors now have a refined understanding of AI’s sector-specific ramifications, fostering a more informed interest. An additional layer of interest is the combination of the fund’s entrepreneurial background and its aligned strategies.
Petr Šmíd, General Partner at Rockaway Ventures, remarked, “We’re not just capital. We’re entrepreneurs ourselves – we’ve built companies, and we understand what’s around the corner. Founders working with us receive hands-on support in areas like international expansion and scaling.”
How is Rockaway Ventures Planning its Reach?
With its new fund, Rockaway Ventures aims to expand its portfolio, which currently includes 11 companies. The focus will be on balancing investments across different regions. Approximately 60% of these investments are slated for Central and Eastern Europe, while 40% will focus on Western Europe and Czech-expert startups emerging in the US. This regional strategy underscores their ambition to nurture tech growth from pre-seed to growth-stage rounds.
Having begun investing informally in 2014, Rockaway Ventures supports startups that leverage AI for innovative solutions in established industries. Since its inception by Jakub Havrlant in 2013, the fund has consistently targeted late-seed and Series A startups. Comprising 25% capital from Rockaway Capital, its composition illustrates an intricate financial structure driven largely by private Czech investors.
This latest development at Rockaway Ventures showcases its consistent adaptation to market needs, reaffirming its stance in the competitive VC market. Increased funding in start-ups intertwining tech with traditional industries reflects evolving investment interests, challenging prior focus areas that dominated the landscape. Offering more than just financial backing, they aim to add substantial value by guiding startups to maneuver through complexities related to scaling and international growth.
The movement towards investment in deep tech marks a noteworthy evolution in venture capital strategies. Rockaway Ventures exemplifies how funds can utilize their entrepreneurial experience to not just invest capital but also provide pivotal mentorship. As technological advancements reshuffle the economic terrain, these comprehensive support mechanisms are predicted to strengthen successful startup trajectories in traditional industries.
