Orbit Capital launches second venture debt fund for 100 million euros

With its new Growth Debt II fund, Orbit Capital is bringing further venture capital to the tech sector in Central and Eastern Europe. With a planned volume of 100 million euros, the fund targets growth financing for technology-driven companies that have solid business figures but are often overlooked by traditional banks. The first closing round has already been completed with 70 million euros.

Big names among the investors

Investors in the new fund so far include the European Investment Fund (EIF), the largest Czech bank Česká spořitelna, the Rentea pension fund (part of the Partners Group) and the investment provider Conseq, which also gives smaller investors access to the asset class. According to Orbit Capital, further investors are in final negotiations.

Proven concept with a track record

Growth Debt II follows Orbit Capital's first fund, Growth Debt I, which was launched in 2019 with 40 million euros. Since then, Orbit Capital has invested in 15 high-growth companies, including well-known names such as Rohlík (online supermarket), Twisto (fintech), ThreatMark (anti-fraud technology), CloudTalk (AI-based call center software) and the yacht platform Boataround.

Venture debt is up to four times cheaper for founders and their investors than further equity dilution.

Radovan Nesrsta, Partner at Orbit Capital.

At the same time, fund investors also benefit: according to Orbit Capital, Growth Debt I showed an expected return of around 15 percent with robust protection against defaults.

Strategic support for CEE tech companies

The fund focuses on companies with an established product, positive or near-positive cash flow development and a clearly recognizable growth path. Typical loan volumes range between 3 and 10 million euros.

We concentrate on companies that combine scalable business models and technology-driven innovation - in other words, precisely those companies that often receive too little financing in Central and Eastern Europe.

Radovan Nesrsta, Partner at Orbit Capital.

Strong support from financial and business circles

Institutional partners also emphasize the strategic relevance of the fund:"Our participation in Growth Debt II is a targeted contribution to the Czech Republic's second economic transformation," says Jan Seger, Director of Financing and Consulting at Česká spořitelna. The aim is to specifically promote companies that are not bankable in the traditional sense, but are highly innovative and capable of growth.

Petr Borkovec, Director of Partners Group, adds:"We are democratizing access to forms of investment that were previously only available to institutional investors. The fund will also give pension investors access to this promising asset class."

With the new fund, Orbit Capital wants to build on the lessons learned from the first fund round. For Orbit Capital, the new fund is also part of an overarching strategy: in addition to the debt fund, the company also operates the Growth Equity I Fund, which currently has two unicorns in its portfolio.

Financial clout for Eastern Europe's tech champions

With Growth Debt II, Orbit Capital is expanding the financing options for technology-driven companies in a region that has long been underserved. The innovative model, institutional partners and hands-on portfolio management will close a relevant financing gap and at the same time significantly accelerate the transformation of the CEE tech scene.