In the rapidly evolving landscape of venture capital, remaining agile and responsive to market shifts is crucial. Czech-based venture capital firm Presto Ventures, founded in 2016 by Premysl Rubes, exemplifies this approach. The firm, known for its strategic investments across Central and Eastern Europe, has recently announced a significant pivot in its investment strategy. After successfully concluding its second fund and launching its third, Presto Tech Horizons, in June 2024, the firm is set to concentrate on deep tech and defense technologies moving forward. Partner Vojta Rocek emphasizes the firm’s key learnings and future ambitions as it navigates these new waters.
Evolution through Strategic Investments
Successes from Presto’s Second Fund
Presto’s second fund, initiated in 2021 and primarily backed by private investors, marked a significant volume of activity across 12 countries in Central and Eastern Europe. Despite a challenging economic environment, including the infamous “VC winter” of 2023, Presto managed to deploy capital to 43 companies. This portfolio demonstrated resilience, with notable early exits and impressive returns. For instance, Inventoro stood out by delivering healthy multiples within just two years.
Among the noteworthy companies in the portfolio, Keboola made headlines by securing $32 million in late 2023, marking the largest Series A round in Central Europe that year. Another gem, Oddin.gg, witnessed substantial growth and earned the title of Central Europe’s fastest-growing tech company in 2024. Furthermore, Choice and Jeff App maintained their upward trajectories, successfully securing follow-on funding rounds and ranking high in growth metrics. Jeff App made its mark as the third fastest-growing tech company in Central Europe according to Deloitte. Adam Technologies also shone brightly, recording a three-fold year-over-year growth and raising €3 million for further expansion in 2024.
Rigorous Investment Process
Presto Ventures’ disciplined approach to investment is reflected in its exhaustive review process. Each month, the firm meticulously reviews over 500 pitch decks and engages with approximately 200 startup founders. This rigorous evaluation process underscores the firm’s commitment to risk assessment and potential analysis. Eventually, fewer than 1% of these startups secure investments, indicating a high bar for selection.
A key facet of Presto’s strategy involves leveraging referrals, which account for more than 70% of their investments. Additionally, the firm remains actively engaged in global tech ecosystems, attending over 50 industry events annually. These events serve as crucial platforms for discovering emerging opportunities and building valuable networks. This combination of thorough evaluation and proactive engagement ensures that Presto remains a significant player in identifying and nurturing promising tech startups.
A Shift in Strategy: From B2B SaaS to Deep Tech
Reasons for the Shift
The comprehensive learnings from Fund II have driven Presto to re-evaluate its future investment strategy. As the landscape for traditional B2B SaaS shows signs of saturation, Presto is pivoting towards startups that lie at the intersection of hardware, software, deep tech, and defense technologies. According to Vojta Rocek, the next wave of innovation is expected to emanate from these sectors. The evolving role of artificial intelligence across industries further substantiates this belief, positioning AI as a cornerstone for future investments.
Rocek emphasizes the potential of combining hardware and software to create transformative technological solutions, particularly in defense technologies. This shift is not merely a redirection but a strategic move aimed at aligning with the anticipated future trends in technology. By targeting deep tech and defense tech sectors, Presto aims to back visionary founders who are poised to redefine these industries and drive forward innovation. The ability to identify and invest in companies that effectively merge hardware and software is seen as a critical advantage in this new strategic direction.
Opportunities and Challenges in the CEE Region
In the ever-evolving world of venture capital, staying agile and responsive to market changes is essential. Exemplifying this adaptability is Presto Ventures, a Czech-based venture capital firm founded by Premysl Rubes in 2016. Known for its strategic investments across Central and Eastern Europe, Presto Ventures has recently announced a significant shift in its investment focus. Following the successful conclusion of its second fund and the launch of its third fund, Presto Tech Horizons, in June 2024, the firm will now turn its attention to deep tech and defense technologies. This pivot highlights the firm’s commitment to staying ahead of industry trends and positioning itself for future growth. Partner Vojta Rocek underscores the importance of the firm’s key learnings and ambitious goals as they navigate this new strategic direction. By focusing on emerging sectors like deep tech and defense, Presto Ventures aims to capitalize on new opportunities and drive innovation in these critical areas.
