“The Czech Republic needs a strong and modern innovation ecosystem that will not only follow but also determine technological trends. The DeepTech fund will enable our most daring startups to overcome critical beginnings and raise the necessary funding to turn ideas and research into new technology companies with a global reach. It is an investment in the future competitiveness of the entire Czech economy” says Minister of Industry and Trade Lukáš Vlček.
This is a breakthrough product in the Czech Republic to support start-up companies, inspired by the best experiences from other European countries. From the NRI’s point of view, it will be one of the main long-term sustainable products,” added Barbara Pošívalová, Chairwoman of the Board of Directors of the National Development Investment Company.
The DeepTech fund will operate on the principle of a “fund of funds”. Experts from NRI, a subsidiary of the National Development Bank (NRB), will be entrusted with its management. The NRI will ensure the selection of professional venture capital funds (VCs) managed by experienced investment managers in accordance with market standards, subject to the majority participation of other private investors who will multiply the invested public funds. One of the goals is to motivate the involvement of private institutional investors to a greater extent. Decisions on investments in individual startups will then be fully in the hands of selected investment teams, in accordance with the established investment strategy.
Compared to previous one-off state initiatives, the DeepTech Fund should operate on the principle of a long-term open call, which will enable continuous selection of funds and predictable support for the sector, following the example of good practice in other European countries. The aim of the tool is to gradually invest in a diversified portfolio of VC funds and support teams with a diverse investment strategy.
The DeepTech fund currently being prepared is another step towards ensuring that the Czech Republic is not only a user of foreign technologies, but also becomes their creator. It systematically focuses on supporting innovative projects from their earliest and most vulnerable stages, thereby creating conditions for higher growth, competitiveness and long-term prosperity – not only for the companies themselves, but also for the entire Czech
economy.
