Omorika Ventures plans year-end first close for EUR 50m southeastern Europe-focused fund

Omorika Ventures has around EUR 8m in commitments and is targeting a first close of at least EUR 10m by the end of this year, Matic said. It plans to hold a final close by December 2024, he said.

The VC firm is in talks with a number of institutional investors and high-net-worth individuals from across Europe and the US, he said.

The fund plans to invest at seed and early Series A stage, with initial ticket sizes of EUR 300,000 to EUR 1.5m and potential for significant follow-on investments, Matic said.

The maximum total investment into any one company could be up to EUR 3m, Matic said. Around half of the fund’s capital will be allocated for follow-on investments, he said.

Omorika Ventures is primarily targeting Croatia, Bosnia-Hercegovina, Serbia, Kosovo, Montenegro, North Macedonia and Albania, regions where the fund's partners have significant influence, Matic said. As an early investor, Omorika expects to have an advantageous position in these markets, he said. The fund also aims to co-invest in Slovenia, Hungary, Romania, and Bulgaria, leveraging its extensive investor network, he added.

While the fund will retain a generalist approach, sectors of interest include B2B SaaS and general ICT, which show promise in this region, he said. The significantly lower valuations in these markets versus Western Europe present a substantial opportunity for capital arbitrage, potentially yielding outsized returns for early investors, he added.

Omorika Ventures plans to invest in a total of 20-25 companies over five years, Matic said. The primary exit strategy will be M&A, with IPOs in these geographies unlikely, he added.

It is in ongoing discussions with around 12 potential targets and aims to begin investing by early 2024, he said.

The fund, which will be domiciled in Luxembourg, aims to plug a gap in funding for startups in the region and provide an essential platform for regional growth and innovation, he said.

The firm is named after Picea omorika, an endemic and endangered tree species from the SEE region. This signifies the creation of a thriving ecosystem conducive for the growth of strong companies in the SEE region, Matic said.

Omorika Ventures has four partners, with the strategy being that each partner will be responsible for around six portfolio companies, Matic said.

The General Partner team comprises Matic, who is responsible for fund operations, deal sourcing and portfolio development; Vladimir Pavlovic, who handles fund structure and compliance; Kosta Andric, who is in charge of deal sourcing; and Vladan Ivanovic, who focuses on supporting portfolio development through his robust global network.

Omorika Ventures is seeking to harness its founders' experience and established network, demonstrated in their innovation consultancy ICT Hub and its VC arm ICT Hub Venture.

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