Prague-based PurposeTech has closed its first pre-seed venture capital fund to support founders from Central and Eastern Europe (CEE) focused on health, sustainability, and education.
Zdenek Fred Fous and the Czech Impact Hub, part of a global network for purpose-driven entrepreneurs and innovators, co-founded the fund.
Founder Zdenek Fred Fous says, “More and more founders are motivated by a deep sense of purpose—they want to create a positive, lasting impact. Yet, despite this growing momentum, funding for HealthTech, GreenTech, and EdTech startups in the CEE region, particularly at the pre-seed stage, remains limited.”
“There is a regional bias toward B2B SaaS startups. Our mission is to support this new wave of founders and seize the emerging opportunities in these sectors. We are the only fund in our region with this dedicated focus.”
Backing purpose-driven founders
PurposeTech is a pre-seed venture capital fund that was launched in 2023 to support founders from Central and Eastern Europe (CEE) working in health, sustainability, and education. Its fund targets early-stage startups with global ambitions.
Since its launch, PurposeTech has reviewed over 1,100 startups and made five initial investments. Despite challenges in fundraising, the fund was oversubscribed and plans to invest in 10 more startups over the next 12 to 18 months.
PurposeTech is headquartered in Prague and operates across seven CEE countries.
Gabriela Gandel, PurposeTech Advisory Board member and former CEO of Impact Hub Global, says, “Investing in scalable, sustainable solutions is essential for creating a healthier, greener, and more resilient future. Over the past three years, our members have raised more than €360M, showcasing the incredible potential of purpose-driven innovation but also the pressing need for greater investment.”
“At PurposeTech, we are proud to address the funding gap for essential startups shaping the future of the CEE region, leveraging the strength of the Impact Hub Network, which boasts 40+ locations just in Europe.”
In August 2024, PurposeTech took part in a €500K funding round for Tingit.
How does PurposeTech make investment decisions?
PurposeTech outlines its investment decision-making process through a structured four-step approach.
- Short Application: Interested founders can fill out a brief form with essential questions. After submission, they can schedule a short introductory call.
- Intro Call: Following application review, PurposeTech provides feedback about its interest. If a startup is deemed potentially strong but not yet investment-ready, it may be invited to join the Pre-Investment Program.
- Deep Dive: Within 3-4 weeks, PurposeTech engages in a series of online (and offline, where feasible) discussions with the startup. After this phase, the fund communicates its investment interest clearly.
- Final Decision: After conducting due diligence, the Investment Committee meets to make the final investment decision if no barriers exist.
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