Venture to Future Fund increases capital by EUR 15.3 million to support Slovak startups
Bratislava, May 28, 2024 - Venture to Future Fund (VFF), an investment fund aimed at supporting innovative Slovak companies with global potential, announced a capital increase of 15.3 million euros. Additional financing from the Recovery and Resilience Plan through Slovak Investment Holding will extend the investment period of the VFF fund until the end of 2026.
Market Gap
The additional capital injection will enable the Venture to Future Fund to expand its portfolio of innovative companies and accelerate their expansion into international markets. The funds, increased thanks to the Research and Innovation Authority (VAIA), which implements Component 9 of the Recovery and Resilience Plan, are primarily intended for Slovak technology companies in the growth phase to expand their teams, develop and enhance products, and strengthen their position in the global market.
“The capital increase comes at a time when we see great potential in the market with many interesting investment opportunities. Last year's economic slowdown forced many startups to seek financing earlier than planned. At the same time, we have few local investors willing to invest in such risky projects, and their financial volume often does not match the growth needs of the companies. We are determined to use these new funds for so-called bridge financing, which is lacking in Slovakia. This will allow for bridging between investment rounds and accelerating the growth of innovative solutions," stated Matej Říha, Chairman of the VFF Board.
Successful Projects in the Portfolio
Since the fund's inception in June 2020, VFF has supported 16 companies, several of which already have international reach and deliver globally recognized solutions. Supported projects include Photoneo, which developed the world's highest resolution and accuracy 3D camera, and autonomous robots under the Brightpick brand, used by customers worldwide. The portfolio also includes Sensoneo, providing solutions for efficient waste management for cities and businesses, and Powerful Medical, a platform for diagnosing and personalized treatment of cardiovascular diseases using artificial intelligence.
“Last year, we more than doubled the number of investments, investing a total of EUR 9.2 million. We were able to support portfolio companies even in tough times and provide additional investments, thanks to which they did not have to significantly cut their growth plans. This is one of our advantages; unlike many investment funds, we have allocated funds to support selected portfolio companies in further investment rounds. Securing this additional funding is a testament to our investors' confidence in our strategy and the potential of Slovak startups," said Miriama Hanout, VFF Board Member.
New Investment Terms
Venture to Future Fund focuses on Slovak small and medium-sized enterprises with innovative solutions and European companies with capital ties to Slovakia. With the increased capital, the investment period is extended, allowing VFF to invest through 2026. Over the next two years, the fund will actively seek and support further promising projects. The investment amount ranges from EUR 400,000 to EUR 7 million, an increase from the original EUR 4.9 million. The fund always invests alongside independent private co-investors based on the pari passu principle, under the same conditions and with the same share of risk and returns.
“VFF's investors also include the European Investment Bank (EIB), which set up the fund according to the best practices in Europe to operate on commercial principles. Our ambition is to retain talented people in Slovakia while creating an environment attractive enough to draw foreign partners. This will increase the potential for developing the local ecosystem. An example is the Czech company Scaut, which relocated to Slovakia after our investment," added Martin Banský, VFF Vice Chairman.
About the Fund
Venture to Future Fund supports Slovak and European technology companies with the potential to succeed in the global market. The fund's capital is primarily used to finance the growth and expansion of these companies, whether through market entry, product enhancement, penetration into new market segments, or market share expansion. The fund, with an initial capital of EUR 40.4 million, was established in 2019 as a result of a joint initiative by the European Investment Bank and the Ministry of Finance of the Slovak Republic through Slovak Investment Holding. In 2024, the capital was increased by EUR 15.3 million from Component 9 of the Recovery and Resilience Plan.
For more information about Venture to Future Fund and support opportunities, visit the website www.vff.sk.
