Venture debt firm Orbit Capital has announced the launch of its second investment fund, Growth Debt II, securing €100 million to support fast-growing technology companies in CEE that often fall outside traditional bank lending criteria.
Following the success of its initial €40 million Growth Debt I fund, the new vehicle has already reached a first close of €70 million, with final negotiations underway. Key investors in the fund include the European Investment Fund (EIF), Česká Spořitelna (the Czech Republic’s largest bank), and Rentea, a pension company under the Partners Group. Retail investors will also have access to the fund through a separate investment vehicle provided by Conseq.
Targeting a gap in the market
“Venture debt is a new type of funding for our region,” said Radovan Nesrsta, Partner at Orbit Capital. “It’s especially attractive for young, high-growth companies and mature businesses that don’t yet meet the requirements for traditional financing.”
Nesrsta emphasized the capital efficiency of venture debt, noting that it is “up to four times cheaper for founders and their investors than raising new equity.” He added that the first fund demonstrated strong performance, delivering 15% returns while maintaining downside protection.
Track record and strategy
Since its inception in 2019, Orbit Capital has deployed capital to 15 Central European tech companies, including Czech online supermarket Rohlík, fintech firm Twisto, fraud-detection platform ThreatMark, AI-powered call center software CloudTalk, and Slovak-based yacht rental marketplace Boataround.
Loan sizes from the new fund will range between €3 million and €10 million, and are aimed primarily at technology and tech-enabled firms that are cash flow positive or nearing break-even.
EIF Chief Executive Marjut Falkstedt noted that supporting Orbit Capital aligns with the EU’s broader goal of promoting innovation and competitiveness in the region. “This investment will help finance SMEs and small mid-cap companies, driving economic growth in Central and Eastern Europe.”
Expanding the model
Orbit Capital Partner Lukáš Macko added that lessons from the first fund will shape the second. “We built the venture debt infrastructure and earned the founders’ trust over the past five years. Now we’re ready to scale this model to support even more companies.”
For broader investor participation, David Kufa of Conseq Wealth Management announced the creation of the Conseq Venture Debt II fund. “We want to give retail clients access to an investment that combines high returns with the lower risk profile of debt, previously available only to institutional investors.”
