OTB Ventures launches $100m fund for tech investment in Europe

OTB Ventures has announced the launch of its early growth technology fund with $100m in commitments.

The investment vehicle, which specialises in investments in tech companies in Central and Eastern Europe.

It focuses on early stage, post-product, start-ups in region and is targeting investment in a total of 16 companies to comprise its portfolio by the end of 2022.

OTB Ventures is set to be the largest fund in Central and Eastern Europe with a long-term investment horizon of up to 10 years. In a statement the fund said it will deploy $15m per company and typically acquire a stake of 10-15 per cent in a given company.

Marcin Hejka, managing partner and co-founder, said: “Central and Eastern Europe is a cradle of  talented engineers and IT specialists, pioneering innovative companies.”

“We see a huge investment potential in these companies with up-and-running products and initial business traction in international markets. The purpose of our fund is to discover, develop and realise this potential on a global scale.”

The fund is now closed to new investors with target fund size achieved through investment from international institutional investors, including the European Investment Fund, and backers including oil trader Greg Jankilevitch.

Alain Godard, chief executive of the European Investment Fund, said: “Our core objective is to support highly innovative small businesses across Europe and in particular start-ups and companies at the scale-up stage of their development.”

OTB Ventures has already invested in eight companies including artificial intelligence company Cosmose, FintechOS and ICEYE.

ICEYE is the vehicle’s largest investment to date with $10m committed in May 2018. The business produces and develops novel micro satellites used to capture images of the earth.