Budapest Letters #54
ππ» Hi All! Great to have you back. This is Budapest Letters, my newsletter covering startup and small business stories from the CEE region, or interesting developments that might have something to do with this part of Europe. Hope you will enjoy it!
Before we jump into edition #54, big shout out to our new subscribers, good to have you here. And one more thing before we roll, if you like what you read, subscribe + share ππ»
Cheers, Aron
π’ TL;DR
Top stories this week: βπ» Czechiaβs Credo Ventures closes β¬75M million new fund, while co-founder Ondrej Bartos shares thoughts on CEE startups βπ» Sunly (πͺπͺ), Tatum (π¨πΏ), Katana (πͺπͺ) and Amber (π·π΄) raises πΆ βπ» Munch, a π¬π§/π¨πΏ startup, aims to bring some coolness to website building βπ» The European Investment Fund publishes its 2022 VC Survey, and sadly, the results does not look pretty
π₯ Story of the Week
It is always fun to read about CEE companies and the people behind these who are doing something meaningful. But even more so when this something is relevant on a global scale. And what Credo Ventures, one of the most succesful VC funds in CEE from π¨πΏ, and Ondrej Bartos (one of its co-founders) do, is just like that. Cool, relevant, measurable by international standards. While thankfully, the number of such businesses and people are on the rise in the past ca. 10 years in this part of Europe as well, this approach still stands out from the local crowd.
So no suprise that it was a delight to read a recent interview with Ondrej, done by The Recursiveβs Antoanela Ionita, on Credoβs closing of its fourth fund at β¬75M, and how Ondrej sees the regional startup scene, the future of it and Credoβs place in it. Pure gold stuff, I can tell you that. Give it a try! Here are some teasers:
I am a believer in the thesis that amazing companies can be built out of anywhere and in the strangest verticals, in verticals with no previous track record in that geography.
I truly believe when I look at CEE startups that there is often a substantial advantage over US or Western European startups, which are often about marketing and sales (β¦) I believe that CEE founders are more real in what they create.
Show Me Da πΆ
ππ» Sunly, a cleantech startup from πͺπͺ, received β¬200M led by Mirova, a French asset managament company that pre-dominantly invests in sustainability focused business. The company, that builds cutting-edge wind and solar farms, will use the fresh funding to expand its team and scale within the Baltics and Poland.
ππ» Tatum, a blockchain startup from π¨πΏ, bagged ca. β¬42.7M co-led by Evolution Equity Partners (πΊπΈ). The company, that simplifies the creation of blockchain based operations through a platform that houses 40+ protocols + API connections, will use the newly raised sum to grow globally and boost its marketing/sales efforts.
ππ» Katana, an ERP software startup from πͺπͺ, nabbed β¬36M led by Northzone (π¬π§). The startup, that built a plug-and-play manufacturing ERP (enterprise resource planning) software for SMEs, will use the fresh raise to expand internationally.
ππ» Amber, a gamdev startup from π·π΄, snatched β¬20M led by Emona Capital (π¬π§). The company, that provides its clients with end-to-end digital game development, will use the funding to expand through M&As and increase its product offering.
ππ» Additional investment news that you should know about:
Alvin, a SaaS startup from πͺπͺ, raised β¬6.1M led by Project A Ventures, a German VC firm: more on this via Silicon Canals
AE Solar Horizon, a cleantech startup from π§π¬, secured β¬3.5M co-led by three investors (New Vision 3, AE Solar, ELIA): more on this via AIN.Capital
Superface, an AI startup from π¨πΏ, bagged β¬2.6M led by Tera Ventures, an Estonian VC firm: more on this via AIN.Capital
DEPO Ventures, a VC fund from π¨πΏ, announced the launch of the largest CEE angel fund at β¬20M: more on this via the DEPO website
π₯ to all founders and teams on the fresh raises!
π¨ Startup Alert
This weekβs alert is on Munch, a mobile native website and online store builder startup based in London with some π¨πΏ roots, that helps users (creators and businesses) get an online presence in a cool, intuitive and modern way π₯
The company, co-founded by Alex Bondarev and Martin Ludvik, was backed by Czechiaβs Credo Ventures and the UKβs Notion Capital only days ago ($1.5M) to help them fine-tune their product, boost their team and scale internationally.
Munch currently gives its users the ability to create hyper-personalised websites using an intuitive andΒ unrestrictiveΒ drag and drop editor, plus an online store.
π§ Food
The European Investment Fund published its annual VC survey, focusing on the current geopolitical / macroeconomic environmentβs affect on market sentiment.
It contains numerous interesting insights, so do give it a go whenever you have a bit more time, but until then here are some noteworthy takeaways:
VC perceptions of the fundraising environment are worse than
during the COVID-19 crisis;High investee company valuations is no longer a significant
issue for VCs;Expectations for both future portfolio development and
portfolio companiesβ access to finance in the next 12 months are at an
all-time low;In 2022, majority of VCsβ portfolio companies exited via trade sales
to strategic buyers, of which more than half were non-EU headquartered;According to half of VCs, the exit environment worsened significantly
after a recovery in 2021. More than 50% expect it to further deteriorate
over the next year β twice the percentage recorded during COVID.
And thatβs it for this week!