PurposeTech, the Prague-based pre-seed fund, is targeting the top 0.5% of startup founders in Central and Eastern Europe across Health, Climate, and Future of Work, sectors infused with innovation but traditionally underserved at the earliest funding stages.
Unlocking High-Growth Opportunities in Transformative Industries
PurposeTech strategically targets pre-seed startups in Health, Climate, and Future of Work because these sectors represent some of the most significant growth opportunities. The region is a fertile ground for founders building solutions addressing pressing challenges in those three verticals, particularly in the Baltics, Germany and Austria.
The European health-tech sector alone is projected to grow 11-18% year-on-year, reaching €200+ billion by 2030, driven by increasing adoption of digital health solutions and an aging population requiring innovative care approaches. Meanwhile, sustainability-focused innovations are receiving increased attention as the European Union aims to invest over €1 trillion into green initiatives by 2030. Likewise, the European online education market is projected to grow from €64 billion in 2024 to €220 billion by 2034, representing an average annual growth rate of 13%. This rapid expansion is fueled by accelerated digital transformation, a shift toward more flexible work environments, and increasing digital adoption in education.
“There are some seriously big opportunities in our space, but early funding—especially at the angel and pre-seed stage—is still hard to come by. That’s where we come in. We back standout founders from day one. As a specialized fund, we often co-invest in rounds led by larger generalist funds, bringing our strong domain expertise and industry-specific network to the table.”, says Zdenek Fred Fous, Co-Founder and General Partner at PurposeTech.
Pathway for Exceptional Founders
The fund tackles the challenge of making the right calls with a combination of in-depth talent assessment of the founding teams, careful due diligence and extensive knowledge across the Health, Climate and Future of Work verticals, and this highly selective approach allows them to move forward with founders who check the right boxes. Because in the early stages founders are at their most vulnerable, but also their most transformative, PurposeTech believes early intervention can enhance a startup’s success. Their approach includes strategic mentorship, introductions, workshops and insights, such as the Startup Funding Bootcamp, to help founders better understand what it is that investors are looking for, from the numbers they look at to the questions they ask and the criteria they use. More than 130 founders participated in the last Bootcamp and the top 5 have been chosen to pitch to a panel of 15+ investors.
From over 1,500 startups analyzed, they invested in seven, representing approximately 0.5% acceptance from a pool of relevant startups. Within just two years, PurposeTech’s portfolio companies have achieved impressive milestones and significant market traction.
Growing Portfolio of Breakout Purpose-Driven Startups
The fund’s current portfolio spans the entire region of Central and Eastern Europe. Their investments include Mamio, a Czech-based marketplace for mothers; Doc2Me from Austria, a creators platform for healthcare; eNOugh, a UK-based startup building a AI-powered protection badge; Lithuania’s Tingit, which promotes sustainable fashion through convenient clothing repairs. Its newest additions are Willow, a platform designed to help people cope with the loss of loved ones, Estonia’s Lifeyear, which enables doctors to remotely manage and support patients suffering from heart conditions, and a portable drug analyzer developed by an Estonian DeepTech startup (to be announced soon).
Although its first investments were made in fall 2023, early signs of success are already emerging. Tingit has reached a record 1,100+ monthly submissions, expanded beyond its home market of Lithuania to France, and is preparing to raise its seed round. The founders of Doc2Me (formerly Femble) relocated to New York City last fall, successfully pivoted their business model, and are now on track to reach six-figure annual recurring revenues. They are also planning to raise their next funding round in the coming months.
“We chose to partner with PurposeTech because it was founded by former founders. That mindset is something you can’t teach—founders speak their own inner language. What really sealed it for us was realizing we share the same north star: a belief that growth and purpose—in our case, sustainability—go hand in hand.”, comments Indrė Viltrakytė, CEO & Co-Founder of Tingit.
Tapping into Impact Hub’s Global Network
In identifying and supporting these exceptional founders, PurposeTech also uses its very close partnership with Impact Hub Network, a global network that accelerates purpose-driven entrepreneurs, innovators, and creators.This collaboration opens doors that might otherwise remain closed to early-stage startups, giving them the resources and connections necessary to see their business achieve its potential.
“Investing in scalable, sustainable solutions is essential for creating a healthier, greener, and more resilient future. Over the past three years, our members have raised more than €360 million, showcasing the incredible potential of purpose-driven innovation but also the pressing need for greater investment. At PurposeTech, we are proud to address the funding gap for essential startups shaping the future of the region, leveraging the strength of the Impact Hub Network, which boasts 40+ locations just in Europe,” said Gabriela Gandel, PurposeTech Advisory Board member and former CEO of Impact Hub Global.
