Startups across Central and Eastern Europe (CEE) just gained a powerful new financing ally, without giving up equity. Orbit Capital has announced the launch of its €100 million Growth Debt II fund, a follow-up to its €40 million debut fund, aimed at providing alternative financing to fast-growing tech companies across Central and Eastern Europe that are underserved by traditional banks.
The fund has already closed €70 million in commitments and is in the final stages of securing additional investors. Backers include major institutions such as the European Investment Fund (EIF), Česká Spořitelna (Czech Republic’s largest bank), and pension provider Rentea, part of the Partners Group. Smaller investors can also access the fund through Conseq, which has launched a retail-friendly feeder fund.
Venture Debt comes to the CEE region
Orbit Capital is among the first firms to build a venture debt infrastructure in the CEE region, a financing model commonly used in the U.S. and Western Europe but still novel in Eastern Europe. Unlike traditional bank loans or venture capital, venture debt allows startups to raise capital without giving up equity, offering an attractive alternative to dilution-heavy fundraising.
“Venture debt financing is up to four times cheaper for founders and their investors than if they had to dilute their shares again,” said Radovan Nesrsta, Partner at Orbit Capital. “We’re giving ambitious companies a chance to accelerate growth while retaining control.”
Targeting tech scaleups with traction
The Growth Debt II fund focuses on tech and tech-enabled companies that are approaching profitability or already have positive cash flow but are not yet eligible for conventional bank financing. It offers loan sizes between €3 million and €10 million, helping scaleups push into new markets or speed up product development.
Orbit’s previous investments include some of the region’s most prominent startups, such as:
- Rohlik – Czech online grocery platform
- Twisto – Fintech app
- CloudTalk – AI-driven call center software
- Boataround – Europe’s largest yacht rental platform
The firm claims its first fund delivered investor returns of 15%, with “robust downside protection.”
Bringing institutional-grade access to retail investors
One of the key innovations of this second fund is democratised access. While venture debt was traditionally limited to institutional or ultra-wealthy investors, Orbit has partnered with Conseq Wealth Management to open the fund to smaller investors. This move, Orbit says, supports the broader vision of making sophisticated financial tools accessible to more people.
“This investment structure used to be reserved for a limited group,” said Petr Borkovec, director of Partners Group. “Now, retail investors can participate in a professionally managed portfolio that targets innovation and long-term value creation.”
Backed by banks and pension funds
In a rare move for alternative finance in the region, Orbit’s venture debt fund is being supported by mainstream financial institutions.
“Through this fund, we aim to provide indirect access to venture debt for companies and startups that may not qualify for traditional bank loans but show strong innovation potential and promising business models,” said Jan Seger, Director of Financing and Advisory at Česká Spořitelna.
The EIF’s Chief Executive Marjut Falkstedt added: “This investment will not only provide much-needed financing to SMEs and small Mid-Caps but also promote innovation, contributing to the region’s economic growth and competitiveness.”
Looking ahead
Orbit Capital plans to deploy Growth Debt II with the same strategy that underpinned the first fund’s success, while deepening its reach across the region. The firm has offices in Prague and Warsaw, and continues to position itself as a key financial catalyst for startups that fall between traditional bank criteria and VC expectations.
“We’ve spent the last five years proving that venture debt can work in this region,” said Lukáš Macko, Partner at Orbit Capital. “Now we’re scaling it to support even more of the region’s most promising companies.”
Founded in 2019, Orbit Capital manages a family of venture capital and venture debt funds focused on technology scaleups in Central and Eastern Europe. In addition to Growth Debt I and II, the firm also operates a Growth Equity fund with two unicorns in its portfolio. Orbit is led by a team of experienced investors with backgrounds in VC, private equity, and institutional finance.
