Many promising tech startups in Central and Eastern Europe (CEE), including those founded by diaspora communities, face a severe funding gap and lack access to experienced scaling support, particularly in complex sectors like energy, defence, and AI-driven technologies. Rockaway Ventures, based in the Czech Republic, addresses this challenge by providing capital and hands-on entrepreneurial guidance, focusing on transformative technologies and helping startups grow from early stages to international expansion.
Earlier this week, Rockaway Ventures closed its second fund at nearly €55 million, a milestone for the European venture capital firm. The new funds will support late-seed and Series A tech startups, targeting transformative technologies in Central and Eastern Europe and businesses led by diaspora entrepreneurs.
This fund closure comes as venture capital shows signs of revival in 2025, powered by renewed optimism in AI-driven tech investments.
Addressing the lack of early-stage funding and operational support for tech startups in CEE
Rockaway Ventures was founded in Prague in 2014 as the venture capital division of Rockaway Capital, established by Jakub Havrlant in 2013. The founding team includes Petr Šmíd, a former Google executive with deep experience scaling technology products across Central and Eastern Europe, and Dušan Zábrodský, a strategic investor focused on digital transformation and logistics.
The fund represents a natural evolution of Rockaway Ventures’ investment philosophy, which began informally in 2014. About 25% of the fund’s capital comes from its parent company, Rockaway Capital, with the remainder from private investors, mainly from the Czech Republic.
Rockaway Ventures was created to bridge the gap in early-stage funding and operational support for CEE tech startups. The fund backs founders driving digital innovation in traditional sectors, using its team’s expertise to help startups scale internationally. Its focus is on energy, defence, and dual-use technologies.
The fund follows a clear geographical strategy: 60% of investments will go to startups in CEE, while 40% target Western Europe and diaspora-led startups from Czechia and neighbouring countries now based in the United States. This approach balances regional innovation with global reach.
Dušan Zábrodský, General Partner at Rockaway Ventures, explains their investment focus: “We are currently seeing numerous investment opportunities in sectors significantly shaped by global trends and geopolitical developments. We are particularly interested in founders across Europe and the United States committed to driving growth and advancing their businesses through transformative technologies.”
Their mission is clear: to support exceptional founders, especially from CEE and diaspora communities, who build globally scalable businesses through transformative technologies. The broader aim is to speed up the digital transformation of traditional industries and develop sustainable, high-impact tech companies from the region.
Strategic early investment in Productboard showcases Rockaway Ventures vision
Understanding Rockaway Ventures’ development is key to appreciating this fund closure. The firm began investing in 2014 without a formal fund structure, backing early Czech success stories like Productboard and Storyous. These initial investments established the firm’s reputation in the regional startup ecosystem.
What distinguishes Rockaway Ventures is its entrepreneurial approach to venture capital. As Petr Šmíd, General Partner at Rockaway Ventures, notes: “We’re not just capital. We’re entrepreneurs — we’ve built companies and understand what’s around the corner. Founders with us receive hands-on support in international expansion and scaling.”
The fund provides comprehensive support throughout a startup’s growth journey, from pre-seed to growth-stage funding. This long-term approach shows Rockaway Ventures’ commitment to building sustainable companies rather than pursuing quick returns.
Rockaway Ventures II has 11 portfolio companies, each demonstrating strong early momentum. The fund focuses on innovative tech firms that can transform traditional sectors. Notable investments include: Apaleo, a German cloud-native hotel management platform serving clients like Citizenm and Limehome in over 15 countries; CulturePulse, a US-Slovak startup using AI for behavioural modelling and risk prediction — its platform helps clients understand social dynamics and anticipate security and business risks through the ARES (Automated Risk Estimation) system, which creates psychologically realistic digital twins of target audiences; and Gjirafa, a leading Albanian e-commerce and media platform that has received $8.7 million from Rockaway Ventures across two funding rounds.
The future?AI-Driven Recovery in Tech Investment
The closure of Rockaway Ventures II comes at a crucial moment for venture capital. After several challenging years, 2025 shows signs of recovery, with Petr Šmíd noting, “The recovery began in 2024 and is continuing this year.”
A key driver of this resurgence has been the growing recognition of transformative technologies, especially AI. Šmíd adds, “A few years ago, many investors didn’t fully grasp its potential. Today, we can demonstrate its sector-specific impact — and that’s changing the game.” This insight shows how maturing technology creates new investment opportunities across sectors.
The successful closure of Rockaway Ventures’ €55 million second fund validates the firm’s investment strategy and sends an encouraging signal to the European venture capital landscape. By focusing on transformative technologies in CEE and beyond, the fund is positioned to capture emerging opportunities in sectors shaped by global trends and geopolitical shifts.
