Prague-based venture capital firm Orbit Capital has successfully completed the second closing of its Growth Debt Fund II, securing €107 million. This amount surpasses the fund's initial target, reinforcing the firm's prominent role in the Central and Eastern European venture debt landscape. The new capital is designated to support high-growth technology companies seeking non-dilutive financing to scale their operations.
Strategic Backing from Key Institutions
The fund attracted a strong consortium of anchor limited partners, including the European Investment Fund (EIF), Česká spořitelna/Erste, and Conseq. Notably, the participation of Rentea, a Czech private pension fund, marks a significant milestone for the region's investment ecosystem. This represents one of the first instances of a pension fund allocating capital to the venture debt asset class in CEE.
PFR Ventures, the largest fund investor in CEE, also made its inaugural allocation to venture debt through this fund. Bartłomiej Samsonowicz of PFR Ventures highlighted that debt financing can significantly accelerate expansion while limiting dilution for founders. This strategic partnership underscores growing confidence in Orbit Capital's ability to nurture the next generation of CEE technology leaders.
Fund II Investment Focus and Deployment
Growth Debt Fund II will target post-Series A technology companies with at least €3 million in revenue and a minimum 30% year-over-year growth. The firm will provide investment tickets ranging from €3 million to €15 million to fuel international expansion, acquisitions, and working capital. This clear strategy aims to address the specific capital needs of rapidly scaling businesses in the region.
Orbit Capital has already commenced deploying capital from the new fund, making five investments to date. Among the initial beneficiaries are Czech startups Sloneek and IAG, as well as the Polish company Talkin' Things. These early investments demonstrate the firm's commitment to actively supporting promising ventures across the CEE technology sector.
Orbit Capital's Role in the CEE Ecosystem
Since its founding in 2019, Orbit Capital has established itself as a key growth-stage investor, managing over €200 million in assets. Its portfolio includes some of the region's most successful companies, such as unicorns Preply, Booksy, and MEWS. This impressive track record showcases the firm's expertise in identifying and supporting category-leading technology businesses.
The firm's partners emphasize their role in providing more than just capital, offering a sophisticated tool for growth. Radovan Nesrsta noted that mature companies need flexible financing that preserves equity for founders. This founder-centric approach is designed to provide a strategic runway for companies to scale efficiently while maintaining control.
The successful €107 million closing of Orbit Capital's Growth Debt Fund II marks a significant development for the CEE technology ecosystem. It not only provides a vital source of non-dilutive capital but also signals the maturation of the regional venture debt market. This fund is poised to empower the next wave of innovators, enabling them to achieve global scale without compromising founder equity.