Neulogy Ventures, the first capital fund management company to be based in Slovakia, held an event on 29 April to announce their launch of two new funds. Both new funds focus on startups in the earlier stages of development. However, the two are geared towards providing different types of financing for early-stage tech companies in Slovakia.
The first, a seed fund, has been exclusively backed by the European Investment Fund. The second, a venture capital fund, is somewhat larger and backed by both the EIF as well as 33 private investors. Among these private investors are numerous financially successful Slovak entrepreneurs, company founders, high-level executives and angel investors.
New seeds and ventures
The smaller seed fund is intended to provide funding to companies in the very early stages of their development. These are typically intended to be companies that are in the proof-of-concept, pre-revenue stage. The larger venture capital fund “is focusing on companies with [their] first users or customers and some revenue, or established local players looking to expand to new markets,” explained investment manager Michaela Jacova.
To be eligible for funding investment with one of Neulogy’s two new funds, startup companies must themselves be based in Slovakia, either through their establishment or in their operations. They must also currently be active in research and development. As additional criteria, both of the new funds are seeking ambitious businesses that display scalability and have “significant technology components, regardless of industry sector,” according to Jacova.
The two new funds together have, in total, just over 23 million euros worth of assets under management.
Investing in the future
Neulogy Ventures is a member of the European Private Equity and Venture Capital Association, and the first Slovakian company of its kind to run fully regulated seed and venture capital funds in line with the industry’s highest standards. Jacova reports that the management company is already at work on their next round of investments, which will be the business’ focus over the course of the next two to three years. “We will be doing follow-on investments up until the end of 2016,” she added.
Outside of the two newly launched funds, Neulogy Ventures provides seed and venture financing for startups at both early- and later-stage developmental levels, with a focus primarily on innovative players in the fields of information and communication technology, new energy and medical diagnostics.