LAUNCHub Ventures, a venture capital firm specializing in early-stage investments across Central Eastern (CEE) and South-Eastern Europe (SEE), has successfully completed an initial closing of its latest fund, securing €44 million ($53.5 million). The firm intends to expand this to a total of €70 million, with a final closing anticipated by the second quarter of 2021.

The primary investor in this fund is the European Investment Fund, alongside contributions from corporate entities and a group of Bulgarian technology entrepreneurs and investors.

LAUNCHub plans to utilize this new fund to make investments in approximately 25 startups over the next four years. Initial investments will range from €500,000 to €2 million, targeting sectors like B2B SaaS, fintech, proptech, big data, artificial intelligence, marketplaces, and digital health. The fund will also continue its active investment strategy in the Web 3.0 / Blockchain space, an area it has supported since 2014.

LAUNCHub has also reached gender parity within its team, highlighted by the promotion of Irina Dimitrova to operating partner. Additionally, Raya Yunakova joins as an investor, bringing experience from PiLabs in London, and Mirela Yordanova, formerly leading the startup community at Google for Startups Campus in London, comes on board as an associate.

The firm recognizes the abundance of skilled software developers in CEE countries, where there are roughly 1.3 developers per 100 people employed. Todor Breshkov, founding partner at LAUNCHub Ventures, noted: “The rapid economic expansion of Central and Eastern Europe is attracting attention from Western investors seeking the next high-growth company. The region possesses significant, largely unrealized potential, with increasing numbers of local successes inspiring a new wave of CEE tech founders.”

LAUNCHub Ventures operates in a competitive landscape alongside investors such as Earlybird, though they generally invest at a later stage and often participate as co-investors. In Greece, funds like Venture Friends and Marathon primarily concentrate on their domestic market and entrepreneurs from the Greek diaspora. Other active investors include Speedinvest (typically focused on the DACH region) and Credo Ventures, which prioritizes the Czech Republic and broader CEE area.

Stephane Gantchev, a partner and co-founder at LAUNCHub, explained: “Our approach is to maintain a regional focus, rather than concentrating solely on Bulgaria—we aim to evaluate all viable opportunities throughout South-Eastern Europe.”

LAUNCHub Ventures’ previous investments include:

• Giraffe360 (A robotic camera system for automating real estate listings, with co-investment from Hoxton Ventures and HCVC)
• Fite (A direct-to-consumer digital livestreaming platform for sports, with subsequent investment from Earlybird)
• GTMHub (A leading and user-friendly OKR software solution, followed by investment from CRV)
• FintechOS (Middleware designed to accelerate digital innovation and automation in banking and insurance, with follow-on funding from Earlybird and OTB)
• Cleanshelf (A platform for managing and optimizing enterprise SaaS applications, with further investment from Dawn Capital)
• Office RnD (Software for managing co-working and flexible office spaces, with subsequent funding from Flashpoint Ventures)
• Ferryhopper (A ferry ticketing platform serving Southern Europe, with co-investment from Metavallon)