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Czech investment manager Orbit Capital launches €100 million fund to support tech companies overlooked by banks
- Prague-based Orbit Capital has launched its Growth Debt II fund aiming to reach €100 million to support tech companies in Central and Eastern Europe overlooked by banks.
- The fund has already closed €70 million with investors including European Investment Fund, Česká Spořitelna, Rentea pension fund (Partners Group), and smaller investors through Conseq.
- Orbit Capital introduced Venture Debt to offer financing for young, fast-growing and mature companies that do not meet traditional bank financing conditions, providing cheaper funding and potential returns of 15%.
- Orbit Capital, focusing on technology scaleups, aims to fill the debt financing gap for CEE startups, offering funds ranging from €3 to €10 million through Growth Equity I fund.
- The Orbit Capital family also includes Growth Equity I fund with two unicorns in its portfolio, enabling clients to invest in innovative ways previously limited to wealthy investors.
- The venture capital company has invested in fifteen Central European companies including Rohlík, Twisto, ThreatMark, CloudTalk, and Boataround, supporting those with strong innovation potential and promising business models.
- By facilitating indirect access to venture debt for companies unable to qualify for traditional bank loans, Orbit Capital aims to support the economic transformation and competitiveness of the Czech economy.
- Marjut Falkstedt, EIF Chief Executive, highlights the investment's crucial support for innovative companies in Central and Eastern Europe to enhance economic growth and competitiveness in the region.
- Orbit Capital plans to apply learnings from its first fund in the strategy for the second fund, leveraging the venture debt infrastructure built over five years to aid more companies in their growth.
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