70 million venture capital fund KAYA expands to Bulgaria

Czech venture capital fund KAYA has announced a strategic expansion into Bulgaria. The company is launching its fifth fund of nearly €70 million, a significant portion of which will be directed toward the Bulgarian startup ecosystem. The expansion comes at a time when local funds are still raising capital and institutional financing is limited.

KAYA will support up to 25 companies in the early pre-seed to Series A stage, with initial investments of between €1 million and €3 million. The fund is not only interested in traditional software solutions but is also actively looking at sectors that often remain outside the radar of investors, such as biotechnology, new materials, and healthcare.

For successfully developing startups, there is an opportunity for additional investments of up to €20 million through joint investments with other funds. This is a significant entry for KAYA into the Bulgarian market, although the fund has a history in the country.

In 2022, it invested in the telemedicine platform Healee and indirectly through the Czech “unicorn” Rohlik, which invested in the Bulgarian platform eBag.

KAYA's expansion into Bulgaria is indicative of the region's growing potential. With nearly 15 years of experience and a portfolio of over 45 companies, the fund is behind two unicorns – Rohlik and Docplanner – as well as scale-ups such as Booksy, which exceeded €100 million in revenue last year. Along with this, the fund brings not only capital but also significant expertise.

The last decade has proven that there is growing talent in Central and Eastern Europe that has contributed to a number of global successes," commented Tomas Obrtac, one of the fund's partners. “We are looking for dreamers with the courage to go global, and we want to be their first partners and long-term supporters.”

In this context, in addition to funding, KAYA offers access to a network of experienced company founders. It maintains long-standing partnerships with global investors such as Index Ventures, Creandum, and Goldman Sachs, facilitating access to follow-on rounds.

Good timing

KAYA's entry into Bulgaria comes at a time when the local ecosystem is looking for new momentum for growth and Bulgarian entrepreneurs are facing challenges in raising funds.

The delay in access to capital is partly due to the slower launch of new institutional funds, as well as the fact that several of the leading local venture capital firms are still in the process of raising funds for their new funds. This has triggered a period of uncertainty in which growth opportunities for young companies are more limited.

Translated with DeepL.