Daria Solovieva
Central and Eastern European (CEE) SaaS companies are showing resilience in the face of global tech headwinds. The latest CEE SaaS Index reveals a slight dip in revenue multiples to 3.74x, while US multiples fell more sharply to 5.79x. Despite slower growth rates, CEE SaaS firms saw their collective market cap rise 15% to €2 billion this year. This narrowing valuation gap highlights the region’s emerging strength in the global tech landscape. [Source: Vestbee]
NATO Allies Launch €58 Million Drone Fund in Washington Summit
At the NATO leaders’ summit in Washington, six nations have pooled resources to advance drone technology. The Drone Coalition, led by the U.K. and Latvia, includes Denmark, New Zealand, the Netherlands, and Sweden, has established a €58 million joint fund. This initiative, formalized through a memorandum of understanding, signals a unified approach to bolster NATO’s unmanned aerial capabilities. The fund’s creation underscores the growing importance of drone technology in modern warfare and alliance defense strategies. [Source: Labs of Latvia]
UKRAINE
Uklon Doubles Down on Uzbekistan After Azerbaijan Exit, Eyes 10% Annual Market Growth
Ukrainian ride-hailing company Uklon is intensifying its focus on Uzbekistan’s taxi market after withdrawing from Azerbaijan due to regulatory changes. The company, which sees potential for 10% annual market growth in Uzbekistan, has invested tens of millions of dollars in the country and plans to expand beyond Tashkent, challenging the dominance of Yandex in a market that’s still underpenetrated compared to Europe. [Source: Spot.uz]
Ukrainian-Founded AI Startup Assisterr Raises $1.7M to Challenge Tech Giants
Assisterr, a London-based AI startup with Ukrainian roots, has secured $1.7 million in pre-seed funding to develop community-owned small language models on the Solana blockchain. The company, which has already attracted 150,000 users and launched over 60 models for major Web3 protocols, aims to decentralize AI development away from tech monopolies. Fresh from joining Google’s AI Startup program with a $350,000 grant, Assisterr plans to use the new capital to accelerate protocol development and incentivize model builders and data contributors. [Source: Vestbee]
Legal AI Startup Wordsmith Secures $5M to Streamline Corporate Law
Edinburgh-based Wordsmith, co-founded by a Ukrainian entrepreneur, has raised $5 million in seed funding led by Index Ventures. The startup’s AI-powered legal assistant, already adopted by review giant Trustpilot, aims to revolutionize corporate legal departments across Europe and Britain. Leveraging data from top law firms, Wordsmith offers automated contract reviews, centralized legal information, and quick answers to common queries. The fresh capital will fuel team expansion and product development as the company seeks to transform legal workflows in the region. [Source: Ukraine Business News]
KAZAKHSTAN
Kazakh AI Startup Axellero.io Joins Silicon Valley Accelerator to Target US Market
Axellero.io, a Kazakhstani low-code AI platform for rapid app development, has been selected for the prestigious AlchemistX acceleration program in Silicon Valley. The startup, one of ten chosen, aims to leverage this opportunity to refine its US market entry strategy and attract American clients. Backed by Kazakhstan’s Ministry of Digital Development and the World Bank, Axellero.io’s participation underscores the growing global reach of Central Asian tech firms. Founder Ruslan Kurkebayev views the 2.5-month program as a springboard for platform improvement and potential investment opportunities. [Source: Kapital.kz]
Kazakhstan Aims for Five Unicorns by 2029 in AI Push
Kazakhstan has unveiled an ambitious Concept for AI Development, targeting the creation of five unicorn companies and a $5 billion IT export industry by 2029. The plan, presented by Digital Minister Zhaslan Madiyev, also aims to integrate at least 25 AI products annually across various economic sectors, leveraging initiatives like the tax-exempt Astana Hub to foster a thriving tech ecosystem. [Source: Daryo.uz]
ROMANIA
Romanian AI Startup CogniSync Raises €1M to Streamline Corporate Workflows
CogniSync, a Romanian AI startup offering expert operational, compliance, and legal advice to businesses, has secured €1 million in pre-seed funding from Early Game Ventures. The investment, which marks Early Game Ventures’ second deal from its new €60 million Fund II, will support CogniSync’s AI-powered platform designed to optimize workflows and ensure alignment with internal practices for scaling companies. [Source: Vestbee]
Romanian Startup .lumen Raises €5M for Visual Impairment Devices
Cluj-Napoca-based .lumen has raised €5 million to further develop its mobility-enhancing devices for the visually impaired. The startup, founded in 2020 by Cornel Amariei, creates advanced technology including the Lumen Glasses and PAD AI, which use pedestrian semantic segmentation to improve independence and safety for blind individuals. [Source: Vestbee]
HUNGARY
Hungarian VC Launches €100M Fund for CEE Startups
Budapest-based Lead Ventures has launched a €100 million fund to support late seed and Series A stage startups in Central and Eastern Europe. The fund, backed by MOL Group and National Capital Holding, will invest between €2 million to €10 million in companies across sectors like mobility, energy, fintech, and B2B software. Lead Ventures aims to help portfolio companies improve product-market fit and expand into new markets, leveraging its extensive network of industry experts and strategic partners. [Source: Vestbee]
POLAND
Polish AI Marketing Platform Secures €3.5M Funding
Krakow-based Digital First AI has secured €3.5 million in funding led by 4growth VC, with participation from several other investors. The martech startup, founded in 2021, develops AI-powered marketing software that optimizes planning and produces advertising materials. With this investment, Digital First AI aims to enhance its platform, expand globally, and deploy its solutions for larger enterprises. [Source: Vestbee]
CZECH REPUBLIC
Czech Firm Secures Backing for AI Hotel Management
RobosizeME, a startup founded in 2022, has landed seed funding from BrightCap Ventures and other investors to advance its AI-powered platform for the hospitality industry. The Czech company aims to enhance operational efficiencies for hotel chains and management companies, with plans to expand its offerings and secure agreements with 6,000 hotels within the next 18 months. [Source: Vestbee]
Home Repair Platform Adam Raises €3M for Global Expansion
Prague-based Adam has secured €3 million in late-seed funding from Brighteye Ventures to expand its home improvement platform beyond Europe. Founded in 2020, Adam connects customers with reliable contractors for services like painting and apartment repairs, having completed over 15,000 jobs across 11 European countries. The funding will allow Adam to improve its customer experience, enter non-European markets, and introduce new trade services. [Source: Vestbee]
ESTONIA
Estonian Fintech Wins €2.5M EU Grant for Cross-Border Credit Tech
Mifundo, a Tallinn-based fintech startup, has secured a €2.5 million grant from the European Innovation Council’s EIC Accelerator Program. Founded in 2018, Mifundo develops a platform that integrates passport credit records across borders, enabling cross-border lending and reducing foreign customer credit risk for banks. The funding will support Mifundo’s expansion into new European markets and enhance its pan-European data model. [Source: Vestbee]
Estonian Nanofiber Startup Attracts Superangel Investment
Gelatex, a Tallinn-based materials technology startup, has secured funding from Estonian venture capital firm Superangel for an undisclosed amount. Founded in 2016, Gelatex develops technology to produce nanofibres for various applications including cultured meat, tissue engineering, and wound care. The company’s innovative halo spinning technology offers an alternative to traditional nanofiber production methods, with potential applications in fields ranging from cancer research to sustainable food production. [Source: BalticVC]
Berlin’s Loyi Secures €425K to Rethink Loyalty Programs with Web3 Gamification
Berlin-based startup Loyi has raised €425K in a pre-seed round, led by DG Nexolution, to develop its no-code platform for Web3 loyalty programs. Loyi’s innovative solution enables brands to engage Gen Z customers through gamified experiences, rewarding them with digital incentives. The investment will drive product development, team expansion, and market adoption. [Source: BalticVC]
LATVIA
Jeff App Secures $2M to Expand Data-Driven Financial Services in Emerging Asian Markets
Latvia-based Jeff App has raised $2 million in seed funding, led by Presto Ventures, to scale its financial marketplace across emerging Asian economies, including India. Founded in 2020, Jeff App uses automated data collection and analysis to provide underserved populations with competitive credit solutions, facilitating over 60 million financial product applications for 6 million users. The investment will support team growth, market expansion, and the development of new financial services. [Source: Vestbee]
Riga’s New Startup Hub to Receive €450,000 Investment Over Three Years
The Riga Investment and Tourism Agency (RITA) has announced a €450,000 investment in the Startup Houses Support Program to develop a new startup hub in Riga. The chosen developer, selected based on experience and strategy, will receive €150,000 annually over three years to support at least 10 startups in the first year and 15 each in the subsequent years. The investment aims to establish a collaborative space for startup founders and employees, with significant funding allocated for direct support to startups. [Source: Labs of Latvia]
FlyCap Aims to Rise €41.3M to Boost Growth Companies with Mezzanine Financing
Latvian opportunity capital fund FlyCap plans to raise €41.3 million, with €24.8 million from the European Regional Development Fund and ALTUM, and €16.5 million from private investors. FlyCap will provide mezzanine loans of up to €4 million per company, targeting promising, export-oriented firms to foster job creation and economic growth in Latvia. Investments will commence upon securing 50% of the required private funding. [Source: BalticVC]
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