Prague-based PurposeTech is a pioneering venture capital fund focused on impact-driven investments in Central and Eastern Europe (CEE). Launched in 2023 by Zdenek Fred Fous, in partnership with the Impact Hub network, PurposeTech’s mission is to support emerging startups that place health, sustainability, and education at the core of their business. This unique fund in the region stands out by identifying and backing founders committed to creating a positive, lasting impact.
Filling the Funding Gap for Critical Sectors
In Central and Eastern Europe, pre-seed startups—particularly in HealthTech, GreenTech, and EdTech—face significant challenges in raising capital. Despite growing momentum and an increasing number of purpose-driven founders, funding remains limited. “More and more founders are motivated by a deep sense of purpose—they want to create a positive, lasting impact. Yet, funding for these sectors is still rare in our region,” says Zdenek Fred Fous, co-founder of PurposeTech.
PurposeTech fills this gap by focusing on these crucial areas for the future of CEE. Fous highlights that the regional emphasis often leans towards B2B SaaS startups, leaving little room for startups addressing broader, but equally important, issues. PurposeTech is positioning itself as a change agent by providing financial backing to startups with significant societal and environmental impact.
Making an Immediate Impact Since Launch
Since its launch in 2023, PurposeTech has already reviewed over 1,100 startups in the region and made five initial investments, demonstrating a strong demand for mission-driven entrepreneurs. Despite the challenges of fundraising, the fund oversubscribed its first round, a clear sign of investors’ confidence in this innovative approach.
One of its early investments includes participating in a €500,000 funding round for Tingit in August 2024, a startup focused on sustainable solutions. The fund’s objective is to invest in 10 more startups over the next 12 to 18 months, continuing its commitment to supporting sustainable innovation.
A Structured Approach and a Unique Investment Model
PurposeTech also stands out for its carefully structured investment methodology. The fund has implemented a four-step process, which includes an online application, an introductory call, a deep dive analysis, and a final investment decision following full due diligence. This approach enables PurposeTech to support founders from the earliest stages of their journey and even offers pre-investment programs for startups that show potential but are not yet ready for funding.
The fund’s business model focuses on pre-seed investments, targeting startups with global ambitions and a sustainable impact focus 🌍. PurposeTech targets sectors where innovation can significantly transform society, ensuring these companies have the potential for international scalability.
A Powerful Network Supporting Founders
What strengthens PurposeTech is its close connection with Impact Hub, a global network dedicated to purpose-driven entrepreneurs. Through this collaboration, PurposeTech benefits from access to over 40 Impact Hub locations across Europe, providing startups with strategic support and local expertise in multiple markets. Gabriela Gandel, PurposeTech Advisory Board member and former CEO of Impact Hub Global, emphasizes the importance of sustainable innovation: “Investing in scalable, sustainable solutions is essential for creating a healthier, greener, and more resilient future. PurposeTech perfectly addresses this need by providing critical funding to startups that are shaping the future of the CEE region.”
