Orbit Capital closes €107M venture debt fund for CEE scaleups

Orbit Capital has successfully closed its Growth Debt Fund II at €107 million, exceeding its initial target and signalling robust investor confidence in the Central and Eastern European (CEE) technology sector. This significant capital raise underscores a growing trend of providing specialized, non-dilutive financing to rapidly expanding tech companies, crucial for their international ambitions and operational scaling. The fund's success highlights the increasing maturity of the CEE venture ecosystem and the demand for flexible financial instruments that support equity preservation for founders. The fund is designed to support post-Series A technology companies that demonstrate substantial growth, specifically those with at least €3 million in revenue and a minimum 30% year-on-year growth rate. Capital deployment will range from €3 million to €15 million per company, earmarked for strategic objectives such as international expansion, mergers and acquisitions, working capital improvements, and capital expenditures. This targeted approach ensures that capital is directed towards companies poised for significant growth and market impact. A key aspect of this fund's backing is the diversification of its investor base, featuring major European institutions like the European Investment Fund (EIF), Rentea, Česká spořitelna/Erste, and Conseq. Notably, the inclusion of Rentea, a Czech private pension fund, marks a pioneering allocation to venture debt by such an institution in the region, alongside PFR Ventures' inaugural investment in this asset class. This broader participation from pension funds and institutional investors reflects a strategic shift towards supporting the digital economy and fostering European technological sovereignty.