The report analyzes investment trends, preferences, key challenges, and more, offering a comprehensive view of the Czech venture capital ecosystem. The main partners of the survey, which involved 156 respondents, are the startup support agency Czechinvest and the law firm Novalia.

• AI Leads as the Most Sought-After Technology, with a Rising Focus on Defense
• Interest in Exclusively Czech Startups Continues to Decline
• Startup Investments Deliver Stronger Returns Than Other Asset Classes
• Investor Sentiment for 2025 Remains Optimistic
• High Capital Demands and Risk Continue to Deter Potential Investors
  
   

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Top Investment Sectors of the Past Year

As expected, investors' primary focus last year was on artificial intelligence, which emerged as the most sought-after technology (77.6%), reflecting global trends and the growing number of AI startups. Big data (51%) and data analytics (45.9%) also garnered significant attention, closely tied to the AI field. Cybersecurity (44.9%), machine learning (33.7%), and quantum technologies (17.3%) followed closely behind.
 

In terms of sectors, SaaS (53.1%) continues to dominate the Czech market, followed by fintech (48%) and healthtech (46.9%). Notably, there has been a marked increase in interest in defense technologies (33.7%). “We’re witnessing a growing interest in AI and defense investments. This is no surprise, as investors recognize the critical importance of these sectors for the future. Additionally, they are keenly aware of the vast opportunities arising in these areas, with financial incentives remaining a strong pull,” says Petr Šíma, Managing Partner at DEPO Ventures and Board Member of CBAA. The e-commerce (24.5%) and mobility (24.5%) sectors also hold steady positions. Nearly a quarter of investors (23.5%) remain sector-agnostic.
 

While 24.5% of investors are focusing exclusively on Czech startups, this marks a continued decline from previous years (31% in 2022, 25.3% in 2023). The largest portion of investors now shows interest in startups from Central and Eastern Europe (29.6%), with 20.4% of respondents expressing no preference regarding the origin of the startups they invest in.

Evaluating Investment Performance and the Role of Investors

37.4% of investors rate the performance of their startup investments as superior or significantly better compared to other asset classes. However, it’s worth noting that nearly half of the respondents (45.5%) are still unable to make such comparisons.

Among those who have assessed their investments, the majority (50.7%) have invested directly in startups. More than half (58%) use a combination of investment methods, suggesting a diversification of both portfolios and strategies. The most common return on investment ranges from 1 to 5 times the capital invested across all methods.
 

The overwhelming majority of investors (86.7%) actively support the founders of the startups they invest in, which is relatively rare in other investment forms. They primarily assist with securing additional capital (68.4%), business development (82.1%), and marketing (45.3%). “The Czech startup ecosystem has reached maturity, and investors have become more professional. A good startup investor is a partner who helps the business succeed and stands by it through challenges. I’m pleased to see that this research reveals an increasing number of investors taking on this role,” comments Jakub Císař, co-founder of the law firm Novalia.

What Lies Ahead for Investors in 2025

The majority of both private and professional investors (79.8%) plan to maintain their investment activity in startups throughout 2025. Half of the General Partners of VC funds are planning to significantly increase their capital deployment, while 81.3% of limited partners who invest in funds also intend to continue their investments. However, a quarter (25%) plan to invest less than the previous year, and 6.3% won’t be investing at all.

The survey highlights that the biggest challenge for Czech investors this year is the lack of quality startups, with 62% of respondents expressing this concern. Other challenges include global events (44%) that could influence market conditions and affect investors' risk appetite. Geopolitical issues, such as the ongoing war in Ukraine, are considered irrelevant by 36% of respondents, but are seen as a significant factor by the same percentage. Economic factors such as inflation and interest rates are also impactful. Interestingly, political situations in the Czech Republic have the least influence on investors, allowing startup investing to continue largely independent of domestic politics.
 

Securing venture capital is becoming more challenging, demanding additional time and effort compared to previous years. This is the primary focus for most of the VC funds surveyed (82.4%), though they remain focused on active expansion. Over 40% of them plan to launch a new fund in 2025. “Investors in funds, like last year, still expect exits and liquidity events for their previous investments. It’s likely that once the first returns are realized, those funds will be reinvested into venture capital,” says Eliška Vámošová, the survey organizer and Venture Partner at DEPO Ventures.

Traditional investors still view startup investments as more complex and less accessible than traditional forms of investing. The most significant barriers include capital intensity (35.3%), lack of time (27.5%), and perceived high risk (23.5%).

The most in-demand support is assistance with identifying quality startups, which 51% of respondents would appreciate. Despite the marked improvement in investor knowledge compared to previous years, the Czech startup ecosystem still requires further development and nurturing.