LAUNCHub Ventures has secured €65 million at the first close of a new venture capital fund targeting more than €75 million, with Serbia identified as one of its core markets as regional startup financing shifts toward larger institutional seed investments. The fund plans to make about 25 investments over five years, providing initial funding of between €300,000 and €3 million per company. LAUNCHub can lead or co-lead financing rounds of up to €7 million, while retaining capital for portfolio companies that progress toward Series A funding.
Serbia is included among the fund’s priority markets together with Bulgaria, Romania, Croatia, Greece, Hungary and Slovenia. Investors in the fund include the European Investment Fund, European Bank for Reconstruction and Development, family offices and technology entrepreneurs. The EBRD has committed up to €10 million.
Larger financing options for Serbian startups
The new fund provides an additional source of capital for Serbian technology companies seeking to move beyond smaller early-stage financing and secure the funding required for international expansion. Serbia has built an active startup sector spanning software, gaming, fintech and artificial intelligence, supported by a substantial engineering workforce and expanding technology infrastructure.
Companies seeking several million euros to accelerate sales, recruit internationally or enter Western markets, however, often have to look for financing beyond the region. LAUNCHub’s capacity to provide up to €3 million in initial funding and participate in substantially larger financing rounds creates an additional regional source of growth capital. No fixed portion of the fund has been allocated to Serbia, leaving Serbian startups to compete for investment with companies across Central and Southeast Europe. The fund’s scale nevertheless reflects the increasing institutionalisation of venture capital in the region.
Artificial intelligence becomes a central investment focus
The first three investments from Fund III are connected to artificial intelligence or AI-enabled software. The strategy coincides with Serbia’s efforts to develop its AI and digital economy through the national AI platform, state data infrastructure, science and technology parks and the developing BIO4 Campus.
The investment opportunity is increasingly extending beyond traditional outsourcing, with greater emphasis on Serbian engineering teams developing intellectual property and internationally scalable products while maintaining a substantial share of development operations in the country. Such companies require both access to skilled engineers and financing capable of supporting multiple investment rounds as they expand.
Previous investments build a larger regional capital base
LAUNCHub has invested in nearly 100 companies through its previous funds and recorded 18 exits. Its portfolio companies have subsequently raised more than €700 million, showing the potential for regional seed investments to be followed by significantly larger international financing when companies achieve sufficient scale. More than 10 entrepreneurs previously backed by LAUNCHub and later involved in exits have also invested in the new fund. Other regional venture funds are raising capital as well, expanding the pool potentially available to startups in Serbia and neighbouring markets.
Serbian companies compete for regional investment
The availability of larger regional funds does not ensure that Serbian companies will receive the capital. Investment decisions will depend on the combination of technology, management teams, intellectual property and international growth potential presented by individual companies. For Serbia, this increases the importance of converting its engineering capacity into companies capable of attracting institutional investment rather than primarily providing software-development services.
The distinction affects the type of economic value created. Outsourcing businesses generate salaries and service exports, while scalable technology companies can also develop intellectual property, attract foreign equity and generate capital gains that can subsequently be reinvested in new businesses. The €65 million LAUNCHub fund adds another source of financing as Southeast Europe’s venture capital market moves from smaller seed investments toward larger institutional rounds.
