The Recursive’s weekly roundup aims to cover key tech developments across Central and Eastern Europe, as well as the growing impact of CEE-born founders on the global stage. Take a look at the latest news in funding, product milestones, and emerging trends tied to the region’s potential for the last week of July:
CEE deals
Czech-founded startup E2B has successfully raised $21 (€18.16) million Series A. The round was led by Insight Partners, alongside Decibel Partners, Sunflower Capital, KAYA VC, and angel investors, including Scott Johnston, former CEO of Docker.
With its Series A funding, the company plans to expand its engineering, product, and go-to-market teams in San Francisco, accelerate development of its sandbox platform, and meet growing global demand.
Ukrainian-founded Sigma Software Group, a global tech consulting and software development company, has become the main development partner for DanAds’ next-generation AI-powered platform. DanAds, a leading Swedish provider of self-serve advertising platforms, aims to invest €50 million over five years to integrate advanced AI technologies.
SALESmanago, an European customer engagement platform with over 2,000 clients, has announced the acquisition of Thulium, a Polish provider of AI-driven, multichannel customer experience solutions for eCommerce, from its majority shareholder, Spire Capital Partners.
Founded in 2006 in Kraków, Thulium offers a customer support platform designed to enhance and accelerate communication with clients across multiple channels.
Psylink, a Lithuanian startup focused on developing innovative treatments for people facing mental health challenges, has raised €501,521 in a pre-seed investment round led by Coinvest Capital, alongside a syndicate of angel investors. The round also included Firstpick and BSV Ventures.
The funding will aim to accelerate Psylink’s work on a proprietary biotechnology platform for the sustainable production and screening of plant- and fungi-derived compounds – aiming to uncover novel, science-based therapies for patients unresponsive to conventional treatments.
“Psylink’s work with next-generation psychedelic derivatives has the potential to redefine what’s possible for patients facing mental health challenges. I’m honored to support the team at this early stage and to help bring these much-needed therapies closer to those who need them most,” said Erin Gainer, lead of the angel investor syndicate.
New €33.3M fund to support 78 early-stage startups across Bulgaria
The Fund of Funds in Bulgaria (FoF) signed its first agreement for the 2021–2027 programming period with Vitosha Venture Partners II to manage the “Entrepreneurship – Early Stage” fund. The fund is expected to raise €33.3 million, including €30 million in public funding from the EU-backed Competitiveness and Innovation in Enterprises Program (CIEP). The manager also commits to attracting over €15 million in private investment.
This builds on the previous experience of Vitosha Venture Partners, which managed €26 million and made over 100 investments in the prior period. The new fund aims to support 78 startups, at least 44 newly established, with investments ranging from €25,000 to €1 million. Around half the companies will be outside the Southwest region.
EU’s AI Act enforces strict compliance from August 2025
The EU’s AI Act came into force on August 1, 2024, introducing strict rules for the use of artificial intelligence, especially high-risk systems. Starting August 2, 2025, companies must ensure employees have proper AI training and that high-risk tools are continuously monitored by qualified personnel.
Employers are also required to log significant events related to AI system use for at least six months to track risks to health, safety, or fundamental rights. Companies that fail to comply by August 2 may face fines of up to €35 million or 7% of their global annual revenue. Sanctions will consider local legal frameworks and aim to avoid disproportionately harming SMEs and startups.
