Prague-based KAYA, an early-stage venture capital firm, has raised €70 million in the first close of its fifth fund, expanding its investment scope across the broader Central and Eastern European region.
Previously focused mainly on Czech, Polish, and Slovak startups, KAYA will now back companies throughout the whole region, from pre-seed to Series A stages. The firm plans to invest in up to 25 startups with this new fund.
The latest fund launch coincides with changes to KAYA’s leadership team. Karel Zheng, a former founder and long-time team member, has been named a general partner.
“I hope to bring the perspective of someone who grew up online and is attuned to how today’s founders think,” Zheng said.
He first joined KAYA in 2018, briefly leaving to run his own startup.
Shifting focus beyond traditional markets
“There’s been a clear shift across the CEE region — founders are thinking globally from the start,” said Tomas Obrtac, one of the firm’s four general partners. He noted that KAYA has already been investing outside its core markets in recent years, with plans to continue expanding in countries like Hungary, Bulgaria, Croatia, and Slovenia.
Initial investments typically range from €1 million to €3 million, but KAYA can invest up to €20 million in later rounds through co-investments with long-time partners.
According to partner Tomas Pacinda, KAYA has seen higher-than-expected interest in the new fund, with commitments from repeat backers and new institutional investors, including regional banks and international funds. Pacinda, who joined in 2015, has worked with startups such as Twisto, Footshop, and Upheal.
Unicorns and emerging startups
KAYA’s portfolio includes two unicorns: Czech online grocer Rohlik and Polish healthtech platform Docplanner. Poland’s Booksy, a beauty and wellness booking platform, is also nearing unicorn status after surpassing €100 million in revenue.
The firm currently holds stakes in over 45 startups, with a total portfolio value of around €350 million.
KAYA does not specialize in a single industry, instead seeking companies building for the future, including in biotech, new materials, and healthcare. “We’re generalists,” said Martin Rajcan, a London-based partner focused on founders outside the CEE region. “We want to back entrepreneurs from this region wherever they are.”
Rajcan previously worked at KKR and helped scale German startup Priori Data, which exited in 2018.
Supporting startups beyond capital
KAYA also helps startups grow through two main channels: access to expert advisors and help with follow-on funding. Its network includes founders and executives such as Tomas Cupr (Rohlik), Juraj Masar and Veronika Kolejak (Better Stack), and Michal Valko, a researcher involved in Meta’s Llama 3 AI model.
The firm also facilitates introductions to international investors, including Index Ventures, Creandum, EQT, and Goldman Sachs.
