In a pivotal development for Croatia’s entrepreneurial landscape, the European Investment Fund (EIF) and the Ministry of Regional Development and EU Funds of the Republic of Croatia joined forces in September 2023 to ink a groundbreaking funding agreement. This agreement marked the inception of the Croatian Venture Capital Initiative 2 (CVCi 2), an ambitious EUR 80 million fund-of-funds initiative strategically designed to fuel the growth of innovative Croatian SMEs. CVCi 2 operates through accelerators and venture capital funds, acting as a catalyst for high-growth potential ventures in the country.

This new initiative builds upon the resounding success of its predecessor, the EUR 35 million Croatian Venture Capital Initiative (CVCi 1), which made its debut in June 2018. The inaugural program facilitated the establishment of Croatia’s first institutional-grade venture capital fund, complete with a dedicated acceleration compartment that has supported over 100 start-ups in their pre-revenue stages to date. CVCi 2, with a formidable financial foundation of EUR 60 million from the ERDF-funded Programme Competitiveness and Cohesion 2021-2027, supplemented by an additional EUR 20 million, sets out to further elevate Croatia’s venture capital and innovation ecosystem.

A distinguishing feature of CVCi 2 is its collaborative approach, as it does not make direct investments in start-ups. Instead, the initiative delegates such investments to selected independent, private investment teams. These teams, chosen for their expertise and vision, not only handle the deployment of funds but also actively seek additional capital from a diverse range of investors, thereby amplifying the impact and reach of CVCi 2 in the Croatian entrepreneurial landscape.

All fund managers can apply on the EIF website, please click here for more details.