technology
Technology has proven itself to be the greatest driver of value of the current age and shows no sign of stopping. On the contrary, digitalisation is accelerating at an unprecedented rate driven by cloud computing, AI & Big Data, with technology-centric businesses taking an incremental share in the world’s GDP. This trend is here to stay.
we invest in eArly-growth technology compAnies from cee to AccelerAte their growth
we invest in eArly-growth technology compAnies from cee to AccelerAte their growth
technology
Technology has proven itself to be the greatest driver of value of the current age and shows no sign of stopping. On the contrary, digitalisation is accelerating at an unprecedented rate driven by cloud computing, AI & Big Data, with technology-centric businesses taking an incremental share in the world’s GDP. This trend is here to stay.
softwAre
Within technology, software-centric and cloud-native business models present an attractive investment profile due to their scalability, ability to differentiate via IP, recurring revenue models and strong unit economics, implying high profitability at scale. Mission-critical B2B solutions, deeply embedded in the end-client’s operations, are a sweet spot due to their client retention characteristics.
cee
The region has a vast potential to develop global category-leaders within technology, due to its immense and high-quality talent pool of software engineers, who have both the appetite and the capacity for international success. CEE has already benefited from a robust seed-stage and early-venture funding ecosystem and has produced its first set of tech unicorns. We strongly believe this is only the beginning of the journey for CEE towards becoming a leading incubator of global technology champions. At the same time, growth capital remains scarce, with few CEE-dedicated investment platforms that can both lead meaningful growth rounds and support the international expansion of the region’s young tech businesses. This is where Carpathian Partners sees its core focus and competence.
softwAre
Within technology, software-centric and cloud-native business models present an attractive investment profile due to their scalability, ability to differentiate via IP, recurring revenue models and strong unit economics, implying high profitability at scale. Mission-critical B2B solutions, deeply embedded in the end-client’s operations, are a sweet spot due to their client retention characteristics.
cee
The region has a vast potential to develop global category-leaders within technology, due to its immense and high-quality talent pool of software engineers, who have both the appetite and the capacity for international success. CEE has already benefited from a robust seed-stage and early-venture funding ecosystem and has produced its first set of tech unicorns. We strongly believe this is only the beginning of the journey for CEE towards becoming a leading incubator of global technology champions. At the same time, growth capital remains scarce, with few CEE-dedicated investment platforms that can both lead meaningful growth rounds and support the international expansion of the region’s young tech businesses. This is where Carpathian Partners sees its core focus and competence.
investment And ownership style
- Rapid decision making, intellectual discipline and radical transparency
- Embracing complexity and seeing through imperfections of young targets, but never compromising on the quality of the management team, technology or size of the addressable market
- Flexibility of investment structures
- Governing by consensus and providing thought leadership in boardrooms, whether in minority of majority position
investment stAge
Early-growth is an attractive entry point from a risk-return perspective. While typical venture risks (technology, product validity, market adoption) are materially reduced, the potential to hyper-scale the business remains and provides an opportunity for outsized returns. At this stage of investing, the end-client value proposition can already be verified and the key risks to underwrite are execution-related. In CEE, early-growth investment stage is also where local / regional VCs may lack funding capacity while larger international investors are present mostly opportunistically. We aspire to be the source of capital and competent support for the best tech companies in the region, reducing their need to fundraise in Western markets.
investment stAge
Early-growth is an attractive entry point from a risk-return perspective. While typical venture risks (technology, product validity, market adoption) are materially reduced, the potential to hyper-scale the business remains and provides an opportunity for outsized returns. At this stage of investing, the end-client value proposition can already be verified and the key risks to underwrite are execution-related. In CEE, early-growth investment stage is also where local / regional VCs may lack funding capacity while larger international investors are present mostly opportunistically. We aspire to be the source of capital and competent support for the best tech companies in the region, reducing their need to fundraise in Western markets.
investment And ownership style
- Rapid decision making, intellectual discipline and radical transparency
- Embracing complexity and seeing through imperfections of young targets, but never compromising on the quality of the management team, technology or size of the addressable market
- Flexibility of investment structures
- Governing by consensus and providing thought leadership in boardrooms, whether in minority of majority position
investment criteriA
investment criteriA
business chArActeristics of
our tArget investee compAnies
- Visionary founding & management teams with global ambitions
- IP-centric, scalable, product-led software and software-enabled businesses
- Strong product and modern software architecture, preference for cloud-native platforms
- Large and growing international addressable market
- Existing clients base, strong client value proposition and good client retention
- Min. of €2 million+ of annual recurring revenue (ARR) growing 40%+ p.a.
- Both positive and negative EBITDA / Cash Flow businesses, but always with solid unit economics (gross margin, revenue retention, good customer LTV / customer acquisition cost ratio, short payback periods)
sectors of focus
- Broadly defined B2B software (vertical & horizontal, application and infrastructure software, enterprise and SME/ SMB), B2C software and marketplaces
- Sectors of preference include Big Data, AI, SaaS, Cybersecurity, Process Automation, Crowdsourced Platforms, Supply Chain / Logistics, IIOT and other Industrial / AEC Software, Ed Tech, broadly defined Fintech, Blockchain
transaction types
- Growth financing, typically around series B. Series A or C financing for opportunities with the right risk / return profile
- Both primary capital raising rounds to fund growth and secondary share acquisitions to provide liquidity to early backers
- We seek both significant minority and majority positions
- Typically €5–15 million equity investment per company with the ability to fund more for the right targets
geographies
- Connection to Central and Eastern Europe, incl. founders / management, HQ or a majority of the R&D team in the region
- CEE broadly defined, with focus on Poland, Czechia, Slovakia, Slovenia, Lithuania, Latvia, Estonia, Romania, Hungary, Bulgaria, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, Albania
- We may also pursue investments in other markets in certain circumstances, with a focus on the rest of Europe and MENA
