Bulgarian venture capital firm LAUNCHub Ventures has closed the first tranche of its third fund, raising €65 million. The fund will target pre-seed and seed-stage startups in Central and Eastern Europe (CEE) and Southeast Europe (SEE).
TL;DR
- LAUNCHub Ventures closes €65M for Fund III, targeting CEE and SEE startups.
- The fund will make around 25 investments over five years, with initial checks ranging from €300K to €3M.
- Most capital will be allocated to core markets like Bulgaria, Romania, and Croatia.
What happened
LAUNCHub Ventures, a Bulgarian venture capital firm, has announced the first close of its third fund, LAUNCHub Ventures Fund III, with €65 million in commitments. The fund aims to reach over €75 million in total commitments.
The fund will focus on pre-seed and seed-stage investments across CEE, SEE, and the region's diaspora. LAUNCHub plans to make around 25 investments over a five-year period, with initial checks ranging from €300,000 to €3 million.
The firm will lead or co-lead rounds of up to €7 million and maintain reserves for follow-on investments at the Series A stage. Most of the capital will be allocated to core markets, including Bulgaria, Romania, Croatia, Greece, Hungary, Slovenia, Serbia, and the wider Western Balkans. The remainder will be invested in the broader CEE region.
Why it matters
This fundraise underscores the growing interest in CEE's startup ecosystem, which has seen significant activity in recent years. For founders and developers in the region, this means increased access to early-stage capital and support.
Investors should note LAUNCHub's strategic focus on core markets, which may indicate stronger deal flow and higher growth potential in these areas. The firm's commitment to follow-on investments also suggests a long-term perspective on portfolio companies.
However, the competitive landscape for early-stage funding in CEE is heating up, with other firms like Early Game Ventures and Iron Wolf Capital also active in the region. Startups will need to differentiate themselves to attract investment.
Key facts
- LAUNCHub Ventures has closed the first tranche of Fund III with €65 million in commitments.
- The fund targets over €75 million in total commitments.
- Initial investments will range from €300,000 to €3 million.
- LAUNCHub plans to make around 25 investments over a five-year period.
- The fund will focus on pre-seed and seed-stage startups in CEE, SEE, and the region's diaspora.
- Core markets include Bulgaria, Romania, Croatia, Greece, Hungary, Slovenia, Serbia, and the wider Western Balkans.
- LAUNCHub will lead or co-lead rounds of up to €7 million and maintain reserves for follow-on investments at the Series A stage.
- The fundraise highlights the growing interest in CEE's startup ecosystem.
Context
Central and Eastern Europe has emerged as a vibrant hub for tech startups, with a growing number of success stories like Bulgaria's Payhawk and Estonia's Bolt. This region offers a unique blend of talent, innovation, and cost advantages, attracting both local and international investors.
Venture capital activity in CEE has been on the rise, with firms like LAUNCHub Ventures, Early Game Ventures, and Iron Wolf Capital playing significant roles. These investors are not only providing capital but also mentorship and strategic support to help startups scale.
The focus on pre-seed and seed-stage investments is crucial for the region's ecosystem, as it enables founders to validate their ideas and build promising businesses. As more capital flows into CEE, the region is poised to produce even more impactful startups in the coming years.
