Kaya VC Launches $80M Fund for CEE Startups

Kaya VC Launches €72 Million Fund for CEE Startups

Kaya VC, formerly known as Enern, has announced a new €72 million fund – equivalent to $80 million – dedicated to supporting startups located in Prague, Warsaw, and throughout the broader Central and Eastern European (CEE) region. The firm’s evolution from initial investments in wind energy to a focus on software necessitated a name change, reflecting its current investment priorities.

This venture capital firm will provide funding to startups “at any stage” of their development. The fund’s Limited Partners (LPs) include the European Investment Fund (EIF) and a cohort of accomplished entrepreneurs originating from the CEE region.

Fund Size and Previous Investments

This new fund represents the team’s fourth investment vehicle, bringing the firm’s total Assets Under Management (AUM) to approximately €250 million. To date, Kaya VC has invested in 27 companies, with recent investments concentrated in B2B marketplaces, health technology, and blockchain solutions.

The Prague-based VC, now officially branded as “KAYA”, boasts a decade-long track record of successful investments. Notable portfolio companies include Booksy, which secured $70 million in funding in January 2021, Twisto (€16 million this year), DocPlanner (€80 million in 2019), and Rohlik ($230 million this year).

Investment Focus and Partner Expertise

Kaya VC will adopt a sector-agnostic approach, allowing partners to pursue investments aligned with their individual interests. Tomas Obrtac will concentrate on agri-tech, Pavel Mucha on next-generation consumer experiences, Tomas Pacinda on fintech, and Martin Rajcan on energy transition. However, all areas within the technology landscape will be considered.

The firm operates under an “equal partnership” model, similar to funds like Point Nine in Berlin, empowering each partner to independently evaluate and approve investment opportunities.

Kaya VC intends to be actively involved from the earliest stages, providing initial funding and supporting “studio projects” that subsequently attract further investment.

Statements from Kaya VC Partners

Pavel Mucha, a partner at Kaya VC, stated: “My initial investments in Prague and Warsaw were driven by a desire to collaborate with individuals building innovative and valuable solutions. Over the past decade, this sector has experienced significant growth, and we continue to support ambitious founders like Stefan Batory of Booksy and Tomáš Čupr of Rohlik.”

Kaya VC is also a participant in the Included VC network, a mentorship program dedicated to supporting underrepresented groups, including women and people of color. Mucha emphasized: “We’ve benefited from their program, actively participated, and are strong advocates. We believe it’s a valuable addition to the European ecosystem and are committed to its continued success.”

Martin Rajcan, also a partner at Kaya VC, added: “Founders from Central and Eastern Europe demonstrate a global perspective, possess robust technical skills, and exhibit an exceptional drive for achievement. These qualities, combined with their unwavering dedication, make them incredibly compelling partners, and we are dedicated to providing them with comprehensive support. Our extensive network of partners, venture partners, advisors, and scouts throughout Europe positions us uniquely to assist founders both within and outside major hubs like Prague and Warsaw.”

CEE Region Investment Trends and Success Stories

The name “Kaya” holds different meanings in various languages – “rock” in Turkish and “sanctuary” in Japanese. Regardless, the firm is well-positioned to capitalize on the increasing startup activity within the CEE region. Dealroom data indicates a fivefold increase in foreign investment in the CEE region since 2015.

The CEE region has already produced globally recognized companies such as Skype, Wise (formerly TransferWise), Bolt, and UiPath, which recently raised $750 million at a $35 billion valuation in preparation for an Initial Public Offering (IPO).