Presto News | H1 2023

VC news and updates on the CEE+ startup market and all things Presto

Pavel Bykov, co-founder and CEO of IP Fabric, in his natural habitat.
Pavel Bykov, co-founder and CEO of IP Fabric, in his natural habitat. After raising the largest Series B round recorded in Czechia in 2023 so far, Pavel and his team have a good reason to smile. 

Dear partners & friends of Presto,

Welcome to our first newsletter ๐Ÿ‘‹๐Ÿผโ€Œโ€Œ
This edition covers the first half of 2023, going forward weโ€™ll be sending quarterly updates.

Weโ€™d love to hear your feedback, so don't hesitate to let us know what you enjoy (or not so much) and what youโ€™d like to see more of (or less of).

Time is money, so feel free to jump to the sections that interest you the most:โ€Œโ€Œ
1. Highlights โ€Œโ€Œ
2. New Presto investments โ€Œโ€Œ
3. Portfolio fundraising | Selected companiesโ€Œโ€Œ
4. Market insights โ€Œโ€Œ
5. Brainfood โ€Œโ€Œ
6. #MeetPrestoโ€Œโ€Œ
7. Department of memes

โญ Highlights

In H1 2023, Presto Ventures invested almost โ‚ฌ5M into 8 companies from 4 different countries ๐ŸŽ‰ Check the list below for details.

Since the end of Q1, market activity has increased notably, and we're proud to have played a role in this positive development. Our Fund 1 companies secured two of the largest Q2 funding rounds in the Czech Republic and Slovakia โ€“ IP Fabric raising $25M and Woltair โ‚ฌ20M โ€“ with more sizeable rounds underway.

  • IP Fabric, the Czech-based market leader in automated network assurance, helping organizations manage private network infrastructures, raised $25M Series B funding led by One Peak with the participation of Presto Ventures and Senovo.
This Czech startup helps Airbus and Blackberry keep their IT systems afloat โ€” and it just raised $25m
Hospitals, banks and manufacturers with thousands of separate networked devices need to keep them safe โ€” IP Fabric is looking to do just that
  • Woltair, the Czech-based climate tech platform that connects consumers seeking sustainable energy solutions with installation and maintenance technicians, raised โ‚ฌ20M Series B funding led by Fifth Wall and Westly Group.
Woltair powers up with โ‚ฌ20.5 Million funding to accelerate residential clean energy
Woltair raises โ‚ฌ20.5 million to aid its expansion into Germany and the acceleration of the deployment of heat pumps and renewable energy in the residential sector
  • GoRamp, a Lithuanian transportation management software company that helps shippers source, plan, and monitor freight logistics in real time, raised $3M in Late-Seed funding led by Lead Ventures with the participation of existing backers, including Presto.
Vilnius-based GoRamp ramps up โ‚ฌ2.7 million to accelerate growth in key European logistics markets | EU-Startups
Lithuanian GoRamp, a SaaS solution designed to address the challenges faced by manufacturers at every level of the supply chain, has successfully raised a
  • Finmap, an Ukrainian cash flow management platform for business owners to keep track their company's and personal finances, raised โ‚ฌ1M funding led by SMOK Ventures, despite the wartime challenges and one of the founders serving on the battlefield.
Ukrainian Startup Finmap Secures โ‚ฌ1M Funding Round While Co-Founder Fights on Frontline
โ€ข Ukrainian cash flow management platform Finmap closed a โ‚ฌ1M funding round, with SMOK Ventures as leading investor โ€ข Czech VC Presto Ventures, investment

๐Ÿ”” New Presto investments

It's no secret Presto is a staunch supporter of the CEE region โ€“ little did we know our geo focus will literally start manifesting itself in our portfolio alphabet:

๐Ÿ‡จ๐Ÿ‡ฟ Carmine Finance | Pre-Seed | Presto Ventures, angel investorsโ€Œโ€Œ
๐Ÿ‡ฌ๐Ÿ‡ช | โ‚ฌ2M Seed | Tether, Presto Ventures, angel investorsโ€Œโ€Œ
๐Ÿ‡จ๐Ÿ‡ฟ Cruxo | โ‚ฌ800k Seed | Presto Ventures, Czech Founders VC, Zaka VCโ€Œโ€Œ
๐Ÿ‡จ๐Ÿ‡ฟ | Pre-Seed | Presto Venturesโ€Œโ€Œ
๐Ÿ‡จ๐Ÿ‡ฟ Ellio | Pre-Seed | Presto Venturesโ€Œโ€Œ
๐Ÿ‡บ๐Ÿ‡ฆ Getpin | Pre-Seed | Presto Venturesโ€Œโ€Œ
๐Ÿ‡ฑ๐Ÿ‡น RoyaltyRange | โ‚ฌ4M+ Seed | Presto Ventures & LPs, Trind Ventures, ZGI Capital, angel investorsโ€Œโ€Œ
๐Ÿ‡ฑ๐Ÿ‡น Spenfi | โ‚ฌ800k Seed | Presto Ventures, Business Angels Fund II, angel investors

๐Ÿ’ธ Portfolio fundraising | Selected companies

  • Adam | โ‚ฌ100k monthly revenue | Managed marketplace | Super-app for craftsman services
  • Klipy | Pre-revenue | Social network & database | GIFs and Clips monetization platform
  • Partory | โ‚ฌ40k monthly revenue | B2B PaaS | Cloud manufacturing platform with a Flixbus model
  • Finmap | โ‚ฌ80k MRR | B2B SaaS | Cash flow management tool for modern business

โžก๏ธ Up to 20 of our portfolio companies are currently fundraising or about to start. To learn more, please visit the Presto showroom.

๐Ÿ’ก Market insights

โ€Œโ€ŒGlobal market news

  • Unicorn births trended up in Q2โ€™23. After hitting a 6-year low in Q1'23, 18 new unicorns emerged in the second quarter globally. The US accounted for half of the crop with 9 unicorns, followed by Asia with 5.
  • The ecosystem is witnessing a surge in companies founded by experienced operators, with 37% of new founders being serial entrepreneurs, which represents a significant increase over the past few years.
  • In the last days of Q2'23 we saw quite a bit of movement on the M&A scene. Large billion dollar deals (USD $7.78B in total) could be the beginning of something more sustained than a one-day burst of activity, as companies without other options start looking for buyers.

B2B SaaS environment

  • Retention has emerged as a crucial driver of growth within the sector. Companies that have successfully retained their customers in this tough climate have experienced growth rates at least 1.8x faster than their peers.
  • The proportion of ARR gained from expansion has increased from 28% in 2020 to 32% now. In comparison, the proportion of ARR gained from new business has fallen from 62% to 58%.
  • The funding landscape remains muted and valuation multiples have stayed low, now hovering between 5 and 10 year averages, clearly displaying 2021 as the outlier year. In the public markets, median enterprise value to revenue multiples for the largest SaaS companies have come down to 5x, well below the longterm pre-pandemic average of 8x.

For a deep-dive on these market highlights ๐Ÿ‘†๐Ÿผ follow these resources ๐Ÿ‘‡๐Ÿผ

  • VC finds its footing as headwinds weaken | PitchBookโ€Œโ€Œ
    The report provides insights into the global VC industry trends, highlighting continued growth in dealmaking activity and the increasing importance of deep tech in Europe.
  • First Look 2023 | State of European Techโ€Œโ€Œ
    This report provides insights into the growth and trends of the European tech industry, highlighting the significant growth of generative AI companies and progress in early-stage funding.
  • State of SaaS Trends | Productivโ€Œโ€Œ
    The last report discusses the growth of the SaaS industry, highlighting the increasing adoption of SaaS solutions by organizations, the rapid growth of SaaS companies in terms of market cap, and the projected market size of the global SaaS industry.

๐Ÿง  Brainfood

โ€Œโ€ŒIn-house thoughts worth sharing ๐Ÿ™Œ๐Ÿผ

Other VCs thoughts to feed your mind ๐Ÿ“š

  • How to Do Great Work | Paul Graham
    โ€Œโ€ŒIn this article, Paul Graham argues the key to doing great work is to find and focus on a specific problem that you're passionate about, and to work hard and smart to solve it.
  • Why AI will save the world? | Andreessen Horowitzโ€Œโ€Œ
    Marc Andreessen believes AI will make the world a better place, arguing that in every aspect of human activity, the ability to understand, synthesize, and generate knowledge results in better outcomes.
  • Consumption vs. subscription business models during downturns | Next Big Tengโ€Œโ€Œ
    The article discusses the shift in economic models for software businesses, focusing on their advantages and trade-offs related to end-customer demand dynamics, predictability of consumption patterns, and valuation implications.

๐Ÿ‘‹๐Ÿผ #MeetPresto

Startup and VC events tend to take a summer break, but soon things will be back in full swing. Follow Presto on LinkedIn and you won't miss a beat. โ€Œโ€Œโ€Œโ€Œ

๐Ÿ‡ฌ๐Ÿ‡ช Surge Summit | Sept 5-7 | Tbilisi, Georgiaโ€Œโ€Œ
๐Ÿ‡ฑ๐Ÿ‡น Startup Fair | Sept 7 | Vilnius, Lithuaniaโ€Œโ€Œ
๐Ÿ‡ฉ๐Ÿ‡ช Bits & Pretzels | Sept 24-26 | Munich, Germanyโ€Œโ€Œ
๐Ÿ‡ฒ๐Ÿ‡ฐ AI Tech Summit | Sept 29-30 | Skopje, Macedoniaโ€Œโ€Œ
๐Ÿ‡ท๐Ÿ‡ด How To Web | Oct 4-5 | Bucharest, Romaniaโ€Œโ€Œ
๐Ÿ‡ช๐Ÿ‡ธ Startup Wise Guys Getaway | Oct 4-6 | Bilbao, Spainโ€Œโ€Œ
๐Ÿ‡ฎ๐Ÿ‡ช SaaStock | Oct 16-18 | Dublin, Irelandโ€Œโ€Œ
๐Ÿ‡จ๐Ÿ‡ฟ Engaged Investments | Oct 24-25 | Prague, Czechiaโ€Œโ€Œ
๐Ÿ‡จ๐Ÿ‡ฟ Disraptors | Oct 26 | Prague, Czechia

๐Ÿค“ Department of memes

Have a laugh on us.

They put hamster racing on the blockchain.

โ€Œโ€ŒThat's it from Presto. โ€Œโ€Œ
Stay tuned for the next issue โœŒ๐Ÿผ

PS: Credit where credit's due. We'd like to thank our friends at KAYA VC for the newsletter inspiration.

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Jamie Larson