SMOK Ventures Unveils $25M Fund to Support Startups in the CEE Region

SMOK Ventures has unveiled its latest initiative, the SMOK II fund, with an allocated capital of $25 million. This fund is designed to support and invest in 25-35 startups primarily located in the Central and Eastern European (CEE) region and the diaspora. SMOK II's investment focus is specifically targeted towards startups operating in the fields of software development, game development, and artificial intelligence (AI). This strategic move signals SMOK Ventures' commitment to fostering innovation and growth within the vibrant startup ecosystems of the CEE region and its diaspora.

SMOK, as part of a global network of funds, is actively involved in managing over $400 million. This network is co-managed by Paul Bragiel, a prominent figure in developing markets. The other two partners in this venture are Diana Koziarska, former CEO at ReaktorX, and Borys Musielak, a tech entrepreneur known for selling Filmaster to Samba TV.

With the launch of SMOK II, the firm is geared towards providing Pre-seed and seed investments ranging from $100,000 to $1 million, along with follow-on investments. The fund has a strong emphasis on software-related ventures, particularly those involved in software development tools, game development, and artificial intelligence. SMOK II exhibits a preference for companies targeting the US market, reflecting its strategic focus on opportunities within the dynamic tech landscape of the United States.

SMOK achieved its first close in November 2022, securing investments from over 60 private Limited Partners (LPs). A notable aspect of this investor group is that most of them are entrepreneurs hailing from Central and Eastern Europe and the diaspora. Among the LPs are founders of three regional unicorns, the former regional head of Google, and early employees from companies like Data Dog and Sumologic. These LPs bring a wealth of entrepreneurial and industry experience to SMOK Ventures, reflecting a strong network and support system within the regional startup ecosystem.

For its second close, PFR Ventures has joined SMOK II as a significant Limited Partner. PFR Ventures' participation highlights strategic collaboration and support for SMOK II's mission to invest in and foster the growth of startups in the Central and Eastern European region and its diaspora.

SMOK II has demonstrated active investment activity, having already invested in 12 startups from various countries, including Poland, Ukraine, Czechia, Croatia, Bulgaria, Latvia, Serbia, and Bosnia. Notable startups in SMOK II's portfolio include Gotiva, 57hours, and Finmap.

It's noteworthy that gender diversity is a focus for SMOK, with the information highlighting that every third startup in the SMOK portfolio is led by a woman. Furthermore, during SMOK's investments, 12.5 percent of the startups had a founding team consisting entirely of women. This emphasis on diversity reflects a commitment to fostering inclusivity and providing opportunities to a diverse range of entrepreneurs within the startup ecosystem.