The Central and Eastern European (CEE) startup ecosystem has been making waves in the investment landscape over recent years, evolving into a vibrant hub of innovation and entrepreneurial energy. Investors searching for cutting-edge opportunities have increasingly turned their attention to this region, attracted by a combination of emerging talent, technological potential, and strategic geographic positioning. At the forefront of this burgeoning ecosystem is Rockaway Ventures, a Czech-based venture capital fund that operates under the umbrella of Rockaway Capital. Having recently closed its second fund with nearly €55 million, Rockaway Ventures is carving a niche for itself as a catalyst for innovation, driving transformative change not only across the CEE region but extending into Western Europe and diaspora-led startups on the global stage.
Rockaway Ventures’ strategic focus lies particularly in supporting startups at the late seed and Series A stages—an investment window that often represents the crossroads between promising ideas and scalable business models. Their target sectors encompass artificial intelligence, energy, defense, and dual-use technologies, areas teeming with disruption potential that also dovetail with Europe’s broader economic and security priorities. This investment thesis reflects a dual goal: fostering novel technologies while aligning with macro-level imperatives, thus positioning their portfolio companies as potential industry game-changers.
One of the most distinguishing features of Rockaway Ventures II is its thoughtfully balanced geographical distribution of capital. Approximately 60% of the fund’s capital is earmarked for startups within the CEE region itself. This allocation underscores a strong confidence in the region’s growing pool of skilled founders and robust entrepreneurial ecosystems. The remaining 40% targets the Western European market and diaspora-led ventures—startups founded by émigrés from the Czech Republic and neighboring countries but operating abroad, especially in the United States. This strategy is a savvy bet on founders who possess the cross-border insights, networks, and operational capabilities to scale their operations swiftly and bridge diverse innovation hotspots. By fostering these connections, Rockaway Ventures taps into a transnational flow of ideas and investment, enriching the portfolio’s growth prospects.
Backing founders who enable digital transformation within traditional industries forms the heart of Rockaway Ventures’ approach. Rather than chasing unproven early-stage ventures, they prioritize startups that have already demonstrated measurable traction and are primed for the next growth phase. This pragmatic stance reduces the typical pitfalls of very early-stage investing, while still amplifying the fund’s impact by accelerating the scaling of market-ready solutions. Such a focus on digitizing sectors like manufacturing, defense, and energy is consonant with wider European goals of modernizing legacy industries through advanced technology adoption. Initiatives that leverage AI, software innovations, and renewable energy solutions contribute not only to increased productivity but also to the long-term competitive edge of regional businesses facing global pressure.
Adding another layer of sophistication to its investment framework, Rockaway Ventures integrates environmental, social, and governance (ESG) principles into its decision-making process. This ESG alignment is far from a token gesture: it places sustainability and responsible business practices at the forefront, recognizing them as critical in today’s evolving regulatory and consumer landscapes. Embedding these values allows the fund to balance robust financial returns with a mandate for societal benefit—mitigating risks associated with unethical practices while fostering portfolio companies that meet increasingly stringent standards. In this light, ESG becomes both a value creation mechanism and a shield, ensuring the resilience and long-term viability of their investments.
A shining example of Rockaway Ventures’ successful approach is Productboard, a product management software startup nurtured by the fund from early stages to unicorn status. Productboard’s trajectory illustrates the power of sustained support across multiple funding rounds, demonstrating Rockaway’s ability to partner deeply with its companies as they mature and navigate new obstacles. This success story offers a tangible blueprint for the fund’s ambitions: to back startups that not only innovate but also scale exponentially, transforming niche ideas into market leaders.
Looking more broadly, Rockaway Ventures’ emphasis on the digitization of traditional industries strikes a chord with Europe’s strategic economic transformation agenda. Legacy sectors are undergoing profound shifts propelled by technology—from AI-driven manufacturing improvements to advanced energy solutions and modernized defense capabilities. By supporting startups at this intersection of old and new, the fund plays a pivotal role in accelerating modernization efforts, fostering innovation ecosystems, and creating pathways for European businesses to claim competitive advantage globally.
Moreover, the fund’s engagement with diaspora-led startups strengthens knowledge transfer and global market integration. Founders who maintain ties to CEE roots but operate out of global innovation hubs like Silicon Valley serve as conduits for capital, expertise, and fresh ideas. Rockaway Ventures’ recognition and cultivation of these cross-border dynamics create synergies that maximize scalability and market entry potential for portfolio companies, unlocking access to resources that purely local ventures might find elusive.
Looking ahead, the nearly €55 million capital pool represents more than just money; it’s a strategic lever for building a robust pipeline of disruptive startups across a range of sectors rich with transformative promise. By focusing investments on startups that have cleared early hurdles, embedding ESG principles, and blending geographic reach with sectoral depth, Rockaway Ventures positions itself at the vanguard of venture capital investment trends in Europe. Its ongoing commitment to vision-driven entrepreneurs signals a future where innovation not only thrives but actively reshapes industries with tangible societal benefits.
The closing of Rockaway Ventures’ second fund marks a significant milestone for the CEE startup scene and beyond. Through a nuanced approach marrying financial acumen, thematic focus, and geographic strategy, the fund exemplifies how targeted venture capital can accelerate digital transformation in traditional sectors while fostering startups with proven traction. Its portfolio’s successes and ESG-driven ethos reinforce its role as a forward-looking investor with a global outlook and a local heart. As Rockaway Ventures deploys its capital in the coming years, it is poised to influence a vibrant ecosystem where foundational industries evolve alongside innovation, creating ripples across borders and markets alike.
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