The Tensor Ventures Co-investment Fund will focus on financing early-stage digital startups (pre-seed), co-investing with other venture capital funds in the Czech market. This initiative will also support the creation of new funds in this underfunded market segment.
The Ministry of Industry and Trade of the Czech Republic, responsible for and overseeing the investment, is planning to launch additional funds with the European Investment Fund to support innovative companies. The investment company Tensor Ventures has been chosen to manage the first venture capital (VC) fund financed by the Czech Republic’s National Recovery Plan (NPO ČR) under the Fund of Funds RRF instrument. This instrument is overseen by the Ministry of Industry and Trade of the Czech Republic (MPO ČR), which delegated the implementation and the selection of the fund manager to the independent European Investment Fund (EIF).
The focus of the first fund managed by Tensor Ventures will be investments in digital innovative companies and startups at the earliest stage (pre-seed). These investments will always be made in co-investment with other professional VC investors, supporting the development of this market segment and the establishment of new VC funds specifically targeting pre-seed investments. This will significantly aid the creation and growth of innovative projects at the most sensitive and risky initial stage of business.
The Tensor Ventures Co-investment Fund project was introduced today in Prague by Roman Smola and the Tensor Ventures team, Petr Očko, Chief Director of the Digitization and Innovation Section at MPO ČR, representatives of the EIF, and the professional association CVCA (Czech Venture Capital & Private Equity Association).
The Tensor Ventures Co-investment Fund aims for a total size of 50 million euros (approximately 1.25 billion CZK). Up to 20 million euros (approximately half a billion CZK) will be invested from the NPO ČR through the EIF. Tensor Ventures plans to raise the remaining funds from private investors. Over the next five years, they intend to invest in approximately 50 digital startups in the pre-revenue stage.
Tensor Ventures has previous experience from Intel Corporation and is among the first fund managers in Central and Eastern Europe specializing in deep tech. They began operations in 2017 and shortly after launched their first fund of 20 million euros (approximately half a billion CZK), focusing on areas such as artificial intelligence (AI), quantum technologies, biotechnology, decentralized technologies (DLT), software 2.0, new energy technologies, climate technologies, and space technologies.
Among the Czech companies that Tensor Ventures has invested in are Tatum, Pointee, Aireen, and UltimateSuite. The latter was recently acquired by the major American company ServiceNow, listed on the New York Stock Exchange. In April this year, Tensor Ventures also sold its stake in the US-Israeli startup Neuronix AI to the global chip manufacturer Microchip Technology. The fund’s extensive network of partners will help attract co-investors and further develop the Czech investment VC ecosystem. The Tensor Ventures Co-investment Fund is expected to make its first investments once all formalities are completed.
