Investment & Fund Management

In September 2023, the European Investment Fund (EIF) and the Ministry of Regional Development and EU Funds of the Republic of Croatia established a new funding agreement to launch the Croatian Venture Capital Initiative 2 (CVCi 2), a fund-of-funds initiative with a total of €80 million aimed at investing in innovative Croatian SMEs with high growth potential. This initiative is a continuation of the successful Croatian Venture Capital Initiative 1 (CVCi 1), which was launched in June 2018 with a budget of €35 million and facilitated the creation of Croatia’s first institutional-grade venture capital fund. CVCi 1 has already supported over 100 pre-revenue stage start-ups.

The CVCi 2 program is structured with a contribution of €60 million from the ERDF-funded Programme Competitiveness and Cohesion 2021-2027, along with an additional €20 million in resources. Furthermore, it is anticipated that private investors will contribute an additional €20 million to the new venture capital funds. Notably, CVCi 2 will not invest directly in start-ups; instead, selected independent private investment teams will manage the underlying investments in portfolio companies and will also be responsible for raising additional capital from other investors.

This initiative is expected to significantly enhance the venture capital and innovation ecosystem in Croatia, providing essential support to SMEs that are crucial for economic growth and job creation in the region.