Prague’s Presto Ventures and CSG launch €150M fund for security and defence tech investments

Prague-based VC firm Presto Ventures and Michal Strnad’s Czechoslovak Group (CSG) have launched Presto Tech Horizons, an investment fund targeting innovative security and defence tech companies. 

With a target size of €150M, the fund will become one of the world’s largest with this sector’s experience and expertise.

Michal Strnad, Chairman of the Board and owner of the CSG Group, says, “At CSG, we’ve long been creating solutions and products that future generations can build on. We seek out the best minds and technologies. Together with Presto, we’ll identify opportunities and develop portfolio companies to deliver solutions with maximum added value and positive societal impact.”

“We understand firsthand how challenging it is to transform research and development into industrial products able to succeed in the defense, security, and law enforcement segments, where they target not only private enterprises but also governments and their organisations.”

“Our success stems from our ability to manage both manufacturing and global trade. We’re prepared to share our experience with emerging innovative entrepreneurs who will become technological leaders,” adds Strnad.

Everything you need to know about the new fund

Presto Tech Horizons aims to invest in “promising” technological projects from NATO countries and allied nations, focusing on dual-use solutions for both civilian and security purposes. 

The fund will enhance the safety and privacy of individuals and the security of businesses, institutions, and states. 

Investments will target sectors such as AI, cybersecurity, automation, robotics, logistics, defence, aerospace, mobility, energy, healthcare, advanced computing, and critical infrastructure protection, including radars, drones, lasers, and sophisticated sensors.

Premysl Rubes, founder and managing partner of Presto Ventures, says, “For young, technologically advanced companies, finding the right investor is often a challenge. By joining forces, Presto and CSG have created a unique partnership that is unmatched in Europe.”

“Our fund brings together the best of tech investing, know-how in building global firms, and industrial-technological expertise.”

Rubes further adds, “For investors, the biggest barrier to entry is the general inaccessibility of sector-specific expertise to evaluate the quality of technology and its commercial viability. Tech entrepreneurs, on the other hand, are hindered by complex regulations, time-consuming processes, and the fulfillment of numerous formal criteria. Our partnership with CSG directly tackles these barriers and risks.”

CSG is the industrial partner and one of the fund’s numerous investors.  

Each year, Presto Tech Horizons connects with up to 3000 founders of innovative companies addressing society’s pressing challenges. They support driven tech entrepreneurs with global ambitions who already generate revenue and seek growth partners. 

The fund plans to announce its first portfolio investments in the fall.

Brief about Presto Ventures

Presto, a venture capital firm established in 2016, invests in fast-growing tech companies, supporting their development and global market entry. With a portfolio of over 60 companies from 20 countries, many have grown more than tenfold since Presto’s involvement. 

The firm claims that the average fund performance boasts a 30 per cent IRR (Internal Rate of Return). Top-performing companies include IP Fabric, Keboola, Sharry, Cloudtalk, and Simpleway. Recent additions are Zerops, Calypso Commodities, and Elin.ai. 

Portfolio companies receive hands-on support from Presto’s internal team and experienced entrepreneurs, many of whom are Presto investors. These mentors guide emerging entrepreneurs, facilitate strategic connections, and assist with business and product challenges, from market entry to exits.

CSG: A global industrial and technology group

Czechoslovak Group (CSG) is a global industrial and technology group involved in Aerospace & Defense across multiple segments. With over 100 companies spanning 8 countries, the Group specialises in developing and manufacturing advanced defence and security systems.

In 2023, CSG reported revenues of €1.73B, driven by key segments like ground equipment, transportation systems, vehicles (including Tatra-based solutions), radars, military security systems, recording systems, and aviation systems.

CSG’s long-term strategy emphasises innovation, product development, and collaboration with industry leaders. Notable innovations include the hydrogen-powered Tatra or water extraction devices for desert environments. Their advanced radars, capable of seeing through walls, are utilised by US security services.

ELDIS, a CSG subsidiary, provides radar coverage across India’s entire airspace. Within their aerospace division, software companies like CS Soft and ATRAC supply critical systems for managing civilian air traffic.

CSG remains proactive in investing in emerging technologies such as XR and drone systems. Overall, CSG and its affiliates employ over 10,000 individuals worldwide.