Investment & Fund Management

The European Investment Fund (EIF) has committed up to €20 million to support the growth of innovative small and medium-sized enterprises (SMEs) and Mid-Caps in the Central and Eastern Europe (CEE) region, specifically targeting the Czech Republic, Poland, and Slovakia. This investment is directed towards the Orbit Growth Debt II fund, managed by Orbit Capital, which aims to provide bespoke non-dilutive financing to growth-stage technology companies. The fund addresses a significant financing gap in Europe, estimated at €1.4 trillion, particularly affecting the software and technology sectors.

The tailored solution provided by the EIF involves senior-debt financing that enables these businesses to accelerate their growth without the need for equity dilution, which is often a barrier for young and fast-growing companies. The introduction of Venture Debt as a funding mechanism is particularly noteworthy, as it offers a cost-effective alternative to traditional bank financing, being up to four times cheaper for founders and their investors. This approach not only supports the financial needs of these companies but also promotes innovation and contributes to the overall economic growth and competitiveness of the CEE region.

The Orbit Growth Debt II fund aims for a total size of €100 million and builds on the success of its predecessor, Orbit Growth Debt I, which has already invested in 15 Central European companies, including notable names such as the Czech online supermarket Rohlík and the fintech app Twisto. The EIF's investment is expected to significantly enhance the funding landscape for innovative companies in the region, fostering a more robust ecosystem for technology-driven growth.