PurposeTech is excited to announce the successful closure of its inaugural pre-seed venture capital fund, dedicated to fostering innovative startups in Central and Eastern Europe (CEE) that are focused on transforming the sectors of health, sustainability, and education. Co-founded by serial entrepreneur Zdenek Fred Fous in collaboration with the Czech Impact Hub, this fund aims to catalyze purpose-driven entrepreneurship across the region.

Addressing a Critical Funding Gap

In recent years, the startup ecosystem in CEE has witnessed a burgeoning interest in entrepreneurship driven by social impact. However, the funding landscape has not kept pace, particularly for startups in HealthTech, GreenTech, and EdTech sectors. Many founders in these areas have expressed a need for more financial support, especially at the pre-seed stage.

“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,” stated Zdenek Fred Fous, Founder and General Partner at PurposeTech. He added that the prevailing trend in the region has favored B2B SaaS startups, leaving a gap that PurposeTech is eager to fill.

Investment Strategy and Goals

PurposeTech is committed to investing in early-stage entrepreneurs who demonstrate a strong dedication to their vision and a global outlook. The fund has already assessed over 1,100 startups since its establishment in February 2023 and has made its first five investments, all geared towards impactful and scalable solutions.

Despite challenging fundraising conditions, the fund has been oversubscribed, highlighting the significant interest in supporting socially responsible startups. Over the next 12 to 18 months, PurposeTech plans to invest in an additional ten startups, aiming to create a robust portfolio that will drive positive change across the CEE region.

“Investing in scalable, sustainable solutions is essential for creating a healthier, greener, and more resilient future,” Gabriela Gandel, PurposeTech Advisory Board member and former CEO of Impact Hub Global, explained. “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 over 40 locations across Europe.”

Fostering Collaboration and Innovation

PurposeTech is not just a financial backer; it aims to cultivate a collaborative ecosystem that supports purpose-driven innovators. By tapping into the extensive resources and networks of the Impact Hub, the fund seeks to empower its portfolio companies with the mentorship, strategic guidance, and connections they need to thrive.

The founders and teams behind the startups PurposeTech invests in are expected to benefit from a unique approach that combines funding with active support in navigating the challenges inherent in early-stage entrepreneurship. This strategy is pivotal for fostering innovation and addressing the pressing global challenges faced by society today.

With the launch of its first fund, PurposeTech is poised to play a critical role in transforming the entrepreneurial landscape of Central and Eastern Europe. By focusing on sectors vital to societal progress, the fund aims to create a significant impact in health, sustainability, and education. As PurposeTech embarks on this exciting journey, it invites aspiring founders with ambitious ideas to join them in shaping a more sustainable future.