The Central and Eastern European (CEE) startup ecosystem is rapidly carving out a new identity on the global innovation map. Over the past several years, this region has become a fertile ground for entrepreneurial ambition and cutting-edge technology. Among the key players fueling this growth is Rockaway Ventures, a Czech-based venture capital fund under the Rockaway Capital group, which recently closed its second fund with nearly €55 million. This pivotal development is not just a financial milestone—it signals a strategic investment in startups pushing digital transformation, especially in the late seed and Series A stages. The fund’s growing influence extends beyond CEE borders into Western Europe and the global diaspora, highlighting the expansive vision behind its investment strategy.
Rockaway Ventures’ approach reflects a deep understanding of evolving market dynamics and regional strengths. By focusing on sectors such as artificial intelligence, energy, defense, and dual-use technologies, the fund targets industries with transformative potential. These focus areas are not selected at random; they represent the frontlines of European economic and security priorities where innovation can lead to sustainable value creation. Supporting startups harnessing emerging technologies in these domains aligns Rockaway Ventures with a broader shift in the venture capital landscape toward scalable, impact-driven businesses.
The fund’s geographic allocation further illustrates a blend of regional confidence and global ambition. Approximately 60% of the capital from Rockaway Ventures II is dedicated to the CEE region, a testament to the thriving entrepreneurial talent and innovation ecosystems there. This allocation underscores the fund’s conviction that CEE is no longer just an outsourcing hub but a significant generator of homegrown startups capable of challenging the status quo. Meanwhile, the remaining 40% targets ventures from Western Europe and diaspora-led startups from Czechia and neighboring countries that operate internationally, especially in the United States. This dual focus taps into cross-border expertise and networks, providing founders with the resources and market access to scale quickly and effectively.
Digging deeper into Rockaway Ventures’ investment philosophy reveals a nuanced balance between risk and opportunity. By concentrating on startups that have progressed beyond initial ideation—those at the late seed or Series A stages—the fund mitigates early-stage risks that often impede returns. This approach not only safeguards capital but also amplifies the impact by scaling solutions capable of disrupting traditional market sectors. The fund looks for companies with measurable traction and growth potential, effectively acting as a catalyst encouraging these startups to refine and expand their technological innovations. This focus on scale rather than just ideas aligns with the fund’s broader mission to reshape established industries through digital transformation.
An additional layer of sophistication is evident in Rockaway Ventures’ integration of environmental, social, and governance (ESG) criteria into its investment decisions. In today’s regulatory and consumer climate, sustainability is no longer an optional add-on—it’s a strategic imperative. Encouraging startups to operate responsibly strengthens their competitive edge while aligning financial returns with societal benefits. Rockaway Ventures’ commitment to ESG principles reflects a modern investment mindset that views sustainability as both a value driver and a critical risk management tool. This alignment not only future-proofs portfolio companies but also positions the fund favorably within an increasingly responsible venture capital ecosystem.
The fund’s tangible successes underscore the efficacy of its approach. For instance, Productboard, a CEE-based product management software startup, exemplifies the kind of transformational growth Rockaway Ventures fosters. From early-stage investment to becoming a unicorn, Productboard’s trajectory highlights the fund’s ability to provide continued support as startups mature and face escalating market challenges. This track record not only validates its investment thesis but also sets a benchmark for future portfolio companies in terms of ambition and scalability.
Rockaway Ventures’ emphasis on digitizing traditional industries complements the prevailing economic shifts occurring across Europe and beyond. Legacy sectors such as manufacturing, energy, and defense are experiencing seismic shifts driven by technological innovation. By backing startups equipped with AI, software advancements, and energy solutions, the fund helps accelerate modernization efforts while fostering a competitive advantage for European businesses. This virtuous cycle—where innovation leads to productivity gains and market expansion—illustrates how venture capital can play an essential role in economic renewal.
In an increasingly interconnected world, the fund’s engagement with diaspora-led startups adds another vital dimension. Entrepreneurs with roots in CEE, yet based in innovation hotspots like Silicon Valley, bring a rich mix of knowledge, capital, and networks. By supporting these founders, Rockaway Ventures acts as a bridge between ecosystems, facilitating the transfer of ideas and resources that accelerate growth. This global-local synergy leverages the best of both worlds, empowering startups to access diverse markets and catalytic partnerships.
Looking forward, Rockaway Ventures’ nearly €55 million fund represents more than capital; it’s a strategic lever for transformative innovation. With a keen eye on late seed and Series A rounds, ESG integration, and a dual-regional focus, the fund is well-positioned to nurture startups capable of redefining industries and reinforcing CEE’s role on the global stage. Its continued backing of visionary founders and disruptive technology signals a bold commitment to shaping an ecosystem where innovation thrives, traditional sectors evolve, and economic horizons expand.
To sum up, the successful closing of Rockaway Ventures’ second fund marks a significant inflection point for the startup landscape in Central and Eastern Europe and beyond. By concentrating investments in sectors like AI and energy, balancing regional and global reach, and emphasizing scalable, market-validated startups, the fund embodies a forward-looking venture capital model. Its portfolio achievements and ESG dedication demonstrate a clear mission: to digitize traditional industries, enable sustainable growth, and bridge innovation ecosystems. As Rockaway Ventures deploys its resources in the years to come, it is set to be a major force driving innovation that resonates across borders and transforms sectors for the better.
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