Catalyst Romania, backed by 3TS Capital Partners, has announced the closing of its second venture capital fund targeting investments in Technology companies. Thanks to strong demand from institutional and private investors, the original target of 40 million euros was substantially exceeded and the Fund reached its hard cap of 50 million euros.
Catalyst Romania Fund II has been established with support of the European Investment Fund (EIF) as the cornerstone investor, to invest capital from JEREMIE Romania Reflows and the EU’s InnovFin Program, and from LP contributions of many other investors. It is the first second generation venture fund in Romania’s history, which is a unique achievement driven by the results and experience of the team.
Catalyst Romania Fund II follows Fund I, which was advised by 3TS and financed through the JEREMIE Romania initiative. With a total capitalization of 15 million euros, Catalyst Romania Fund I invested in 10 well-known Romanian tech companies in recent years, including Elefant.ro, Vola.ro, Vector Watch (acquired by FitBit), SmartBill (acquired by Visma), and GreenHorse Games (acquired by Tencent). Catalyst Romania Fund II will continue focusing on breakthrough technology companies that have launched products into their target markets and that are run by experienced entrepreneurial management teams. According to its strategy, investments of 1-3 million euros will be provided to high-potential technology SME’s from Romania and South Eastern Europe to support their growth objectives and international expansion plans. Since its first closing in November 2020, Catalyst Romania Fund II has invested in two companies and three more are in the due diligence phase. The first investment, Seedblink, is a next generation crowd-investing platform and the second investment, Code of Talent, is a leading micro-learning solution dedicated to employee training. The Fund has already built a strong pipeline and the team believes in the continued availability of excellent investment opportunities from the growing Startup ecosystem in Romania and in the region.
Catalyst Romania brings indispensable company scaling know-how, resources, business partners and co-investors from across Europe, North America and Asia. Catalyst Romania II is a regional fund, focused on Romanian early-stage technology companies, but will also pursue investment opportunities in the other South East European countries.
22.5 million euros has been committed to Catalyst Romania Fund II from JEREMIE Reflows and EIF’s InnovFin Equity Programme. The rest of the fund’s capital commitment was secured through the participation of other investors, as well as of the Catalyst team.
JEREMIE Romania is a set of financial instruments initially supported from Romania’s structural funds during the programming period 2007-2013. Following the end of the programming period, EIF continues to act for and on behalf of the Government of Romania to manage the resources returned from the initial implementation under a new agreement signed in September 2020.
Catalyst Romania has a proven track record of investing and growing technology businesses. The infusion of growth capital, business expansion best-practices, strategic guidance and access to global networks provided by the Catalyst team has helped drive an average compounded annual revenue growth rate of 40% across current portfolio companies.
The first Fund has carried out three exits through transactions with strategic acquirers, while other companies are currently in exit processes and it plans to completely divest its portfolio through transactions with strategic or financial investors, or through listings on stock exchanges in the region including the Bucharest Stock Exchange.