The Czech Republic announced the launch of its dedicated startup association, shortly after Romania’s ROStartup Ecosystem Association. The newly launched Czech Startup Association is poised to advocate for systemic improvements that aim to make the Czech Republic a regional leader in supporting startups and innovation. While the structure of the Czech Startup Association is somewhat different from Romania’s approach, its mission remains consistent: to strengthen the country’s startup ecosystem and foster collaboration between startups and policymakers.
The Czech startup landscape has long faced challenges that hinder its potential growth, and despite prior initiatives, a comprehensive national strategy to advance innovation has yet to be established. The Czech Startup Association was created to address these gaps and advocate for pro-innovation reforms. Its primary focus is on driving dialogue with government entities, including Parliament and political parties, with the goal of securing legislative changes to support entrepreneurship, innovation, and venture growth.
Led and joined by experienced ecosystem people
Led by Martin Jiránek, a well-versed figure in Czech legislative processes and lobbying, the Czech Startup Association brings together a coalition of notable industry players. Founding members include VC firms such as Credo Ventures, Presto Ventures, and Purple Ventures, along with technology startups Keboola, Liftago, and Oddin. The association also includes key stakeholders in the Czech startup ecosystem, including law firms Sparring and Novalia, the JIC innovation agency, the StartupYard accelerator, and the Opera hub. The association is actively working to expand its network and is currently in discussions with numerous additional partners.
The Czech Startup Association has identified seven main obstacles that it believes are impeding startup development in the Czech Republic:
- Equity Incentives (ESOP): Lack of accessible structures for employee ownership in startups.
- Rigid Employment Structures: Inflexible employment laws that limit options for startups.
- Tax Complexity for Startups: A complicated tax code that burdens new businesses.
- Bureaucracy: Lengthy administrative processes that slow business lifecycle events.
- Investment Limitations: Constraints on pension funds and lack of tax incentives for startup investments.
- Data Access: Limited access to public data, which hinders innovation.
- Absence of a National Startup Strategy: No clear economic strategy for fostering a startup-friendly environment.
Martin Jiránek, The Chairman of the Association, says:
“The Czech Republic still lags behind European countries in support of startups. We want to change that. The goal of the Association is to strengthen the startup sector in proposing and promoting key changes. We want to represent all startups, investors and other ecosystem players. We will be a relevant partner for politicians – an organization that will experience it, propose solutions and help with their implementation.”
In the coming months, the Czech Startup Association will focus on creating a comprehensive proposal to tackle these issues, combining legislative and systemic measures that would create one of Europe’s top startup ecosystems. The association plans to work closely with political leaders to promote these changes, ideally aligning with the next electoral period.
Progression trough collaboration
The Czech Startup Association also aims to leverage sectoral synergies by working with established organizations such as the Czech Fintech Association, Czech Founders, the Czech Association of Angel Investors, and the Czech Private Equity & Venture Capital Association. Through this collaborative approach, the Czech Startup Association will advocate for common goals and ensure that startups are well-represented in discussions affecting their future.
By addressing these challenges collectively, the Czech Startup Association hopes to bring substantial benefits to entrepreneurs, investors, and the broader economy. In addition to policy advocacy, the association plans to actively engage with media and the public to raise awareness of these critical issues, seeking to create an ecosystem that enables Czech startups to thrive in the competitive European market.
Vojta Roček, partner at Presto Ventures, adds:
“Everyone here talks a lot about supporting startups, but few actually take action. We’re here to change that. We aim to bring together everyone who envisions a brighter, more prosperous future for the Czech Republic and is committed to realizing that vision by tapping into the immense innovation potential and human capital our country offers.”
