Kaya, a venture capital firm headquartered in Prague, has raised nearly €70 million (US$74.9 million) for its fifth fund.

The firm aims to support up to 25 early-stage startups in the Central and Eastern European (CEE) region, focusing on investment stages from pre-seed to series A.

With this new fund, the firm plans to expand its focus across the broader CEE region.

Initial investments typically range from €1 million (US$1.07 million) to €3 million (US$3.5 million), with potential follow-on funding of up to €20 million (US$23.63 million) per company.

Kaya’s portfolio includes over 45 companies, with a total valuation of €350 million (US$406.37 million). Notable successes include two unicorns, Rohlik and Docplanner, as well as Poland’s Booksy, which surpassed €100 million (US$116.6 million) in revenue last year.

Active in venture investments for nearly 15 years, Kaya continues to develop its proprietary data platform. This platform monitors global startup trends and identifies promising early-stage companies.

Historically, Kaya has invested in startups from the Czech Republic, Poland, and Slovakia.

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🔗 Source: Tech.eu

🧠 Food for thought

1️⃣ CEE venture ecosystem reaches inflection point after decade of growth

The Central and Eastern European startup landscape has transformed dramatically, with venture capital investments surging to €5.9 billion across 1,100+ funding rounds in 2022, representing 260% growth compared to 2020 levels 1.

This growth hasn’t happened overnight. Firms like KAYA have been methodically building the ecosystem for nearly fifteen years, helping establish the region’s credibility in global venture capital 2.

The maturation is evidenced by the emergence of 44+ unicorns from CEE by the end of 2022, including KAYA’s portfolio companies Rohlik and Docplanner 1.

Poland leads the region’s fundraising activity with 460 rounds, followed by Estonia (150) and the Czech Republic (91), demonstrating how the ecosystem now extends beyond a few major hubs 1.

This regional growth reflects trends seen in other emerging tech ecosystems like Southeast Asia and Latin America, where early pioneer VCs helped establish the foundation for larger funding waves years later.

2️⃣ Economic uncertainty shifts investment strategies from growth to sustainability

The venture capital industry is experiencing a notable strategic pivot, moving away from the “growth-at-all-costs” approach that dominated previous years toward more balanced strategies prioritizing profitability and sustainable growth 1.

KAYA’s approach reflects this shift, maintaining disciplined early-stage investments (€1-3 million) while explicitly reserving capital for follow-on rounds, allowing them to support companies through more challenging fundraising environments 2.

This strategy contrasts with the 2020-2021 era when many European VCs dramatically increased check sizes and valuations amid intense competition for deals, only to face subsequent market corrections.

The CEE region’s startups demonstrated resilience during recent downturns, with average deal sizes decreasing in 2022 but overall ecosystem activity remaining robust despite rising interest rates and economic uncertainty 1.

KAYA’s fifteen-year investment history spans multiple economic cycles, suggesting their approach of backing technical founders with global ambitions rather than chasing specific sectors may provide stability during market fluctuations 3.

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