Prague-based PurposeTech has closed its first pre-seed venture capital fund to support founders in Central and Eastern Europe (CEE) focused on health, sustainability and education.
The fund was co-founded by Zdenek Fred Faus and the Czech Impact Hub, part of a global network for purpose-driven entrepreneurs and innovators.
Founder Zdenek Fred Faus says: However, despite this growing momentum, funding for healthtech, greentech and edtech startups in the CEE region, especially at the pre-seed stage, remains limited. ”
“There is a regional bias in B2B SaaS startups. Our mission is to support this new wave of founders and seize new opportunities in these sectors. It is the only fund that specializes in
Supporting purpose-driven founders
PurposeTech is a pre-seed venture capital fund established in 2023 to support founders in Central and Eastern Europe (CEE) active in the fields of health, sustainability, and education. The fund targets early-stage startups with global ambitions.
Since its founding, PurposeTech has reviewed over 1,100 startups and made five initial investments. Despite the funding challenges, the fund has been oversubscribed and plans to invest in 10 more startups over the next 12 to 18 months.
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PurposeTech is headquartered in Prague and operates in seven CEE countries.
Gabriela Gandel, member of the PurposeTech advisory board and former CEO of Impact Hub Global, said: Over the past three years, our members have raised over €360 million in funding, demonstrating not only the incredible potential of purpose-driven innovation, but also the urgent need for greater investment. ”
“At PurposeTech, we are proud to leverage the strength of the Impact Hub Network, which boasts over 40 locations in Europe alone, to address the critical startup funding gap that will shape the future of the CEE region.”
In August 2024, PurposeTech participated in Tingit’s €500,000 funding round.
How does PurposeTech make investment decisions?
PurposeTech outlines the investment decision-making process through a structured four-step approach.
Easy Application: Interested founders can fill out a simple form with important questions. After submission, you can schedule a short introductory call. Intro call: After reviewing your application, PurposeTech will provide you with feedback regarding your interest. If a startup is deemed potentially strong but not yet ready for investment, it may be invited to participate in a pre-investment program. Deep dive: Within 3-4 weeks, PurposeTech will conduct a series of online (and offline when possible) discussions with startups. After this stage, the fund clearly communicates its interest in investing. Final Decision: After conducting due diligence and if no barriers exist, the investment committee will meet and make the final investment decision.
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