- Originating from Poland, OTB Fund 2 closed at PLN 750 million ($185 million) — significantly above the originally planned size, making it the largest VC fund in the CEE region
- The investors in the second fund include, among others, the NATO Innovation Fund, the European Investment Fund (EIF), and the Foundation for Polish Science
- So far, Fund 2 has invested in 9 new projects in the deeptech space such as Semron, KYP.ai, Veridion, and is actively looking for more companies to add to its portfolio
OTB Ventures is a leading European VC fund specializing in investing in deeptech startups. They support early-stage (seed and Series A) companies in the areas of SpaceTech, Enterprise Automation & AI, Cybersecurity, and FinTech Infrastructure. They have just announced the closure of their second fund — OTB Fund 2.
– The announcement of the final size of our second fund, the largest in the CEE in terms of funds raised, is a testament to the trust of our investors. Closing it above the initial assumptions is even more of a success, as it occurred despite the still challenging market. This is largely due to the successful investments made from our previous fund. The capital gathered in OTB Fund 2 enables us to continue our mission of supporting innovative deeptech startups. They’re leveraging Europe’s largest natural resource — exceptional technological talent, which is also abundant in our country – emphasizes Adam Niewiński, co-founder and Managing Partner at OTB Ventures.
– This is our largest fund to date and it reflects the growing importance of Europe as a market for deeptech startups and technological talent. “Deeptech” is our passion and has been the foundation of our investment strategy from the moment OTB Ventures was founded in 2017. The closure of the second fund and the investments we have made thus far prove the validity of this strategy and our commitment to supporting innovative technological projects in Europe, including Poland – adds Marcin Hejka, co-founder and Managing Partner at OTB Ventures.
OTB Fund 2 exceeded its originally planned size in the so-called final closing. The final amount was PLN 750 million ($185 million). Since the first closing in November 2022, OTB Ventures has announced nine new investments, including in Semron (which creates high-performance, ultra-low energy consumption AI systems), KYP.ai (a platform for automating and analyzing productivity in enterprises), and Veridion (creators of AI-based business intelligence technology).
NEW INVESTMENTS WITH SUPPORT FROM NATO, AMONG OTHERS
Among OTB Fund 2’s institutional investors is the NATO Innovation Fund (NIF) , launched by 22 NATO allies at the Madrid summit in 2022. Its aim is to support startups and other VC funds in developing innovative deeptech technologies with high potential for dual-use applications (civil and military).
– OTB Ventures and the NATO Innovation Fund are united in our passion for technology and deeptech sector startups, investing in ambitious entrepreneurs to secure the future of a billion NATO alliance citizens. Our flagship €1 billion fund is intended for investments at the intersection of deeptech, defense, and security, focusing on energy, quantum computing, autonomy, climate, and biotechnology. OTB Ventures’ investments are fully in line with our mission – says Andrea Traversone, Managing Partner at the NATO Innovation Fund (NIF).
The investors in OTB Fund 2 also include the European Investment Fund (EIF), Isomer Capital, NATO Innovation Fund (NIF), Foundation for Polish Science, TDJ Venture, Snowflake co-founder Marcin Żukowski, and OnDean, a fund founded by Relativity.
– Our goal is to support innovation, build new markets, enhance competitiveness, and stimulate job creation and growth throughout the European Union. Therefore, we are delighted to continue our collaboration with OTB Ventures, with financial support from the InvestEU program, to support advanced technology companies throughout Europe and help them overcome funding challenges. This is important both for the companies we will support and for the EU’s competitiveness on the global stage. – says Marjut Falkstedt, CEO of the European Investment Fund (EIF).
– Looking at the achievements of Adam Niewiński and Marcin Hejka’s team, I am convinced that we have joined the ranks of partners of the European leader in the deeptech sector. Their exceptional ability to identify innovative projects with high potential has been confirmed by the investments from OTB Fund 1, and Fund 2 seems equally promising. I am pleased that although TDJ Venture focuses on later-stage growth projects, we can support startups in the early stages of development thanks to teams like OTB Ventures. – says Mateusz Sumara, Investment Director at TDJ Venture.
All the funds raised by the second OTB Ventures fund will be allocated towards investments in European deeptech startups.
OTB VENTURES’ STRATEGY AND PORTFOLIO
OTB Ventures is the largest Venture Capital fund rooted in Central and Eastern Europe, investing in startups with distinctive, often patented technology in four areas: SpaceTech, Enterprise Automation & AI,Cybersecurity, and FinTech Infrastructure. The investment strategy of the new fund is a continuation of the strategy of OTB Fund 1, with the difference that up to 10% of the fund’s value will be allocated to seed-stage companies to support the development of promising ventures at their early stages. Over half of the Fund assets will go to follow-on investments, backing new funding rounds of the most promising projects.
OTB Ventures, in line with its investment strategy, will hold significant minority stakes in its portfolio companies. From the first closure of the second fund in November 2022, OTB Ventures made 9 investments: 3 in series A companies (including KYP.ai, an enterprise productivity automation and analysis platform), and 6 seed investments, including Veridion, a startup creating AI-based business intelligence technology. After announcing an investment in Semron, a Dresden-based startup creating high-performance, ultra-low energy consumption AI systems, in January, OTB Ventures increased its engagement in semiconductor technologies. The portfolio has also expanded in the SpaceTech vertical, through investments in space debris removal leader ClearSpace, as well as Atmos Space Cargo and Kurs Orbital, an Italian startup democratizing orbital services and space logistics market.
