In a nutshell
- Venture capital firm Presto Ventures and Michal Strnad's industrial technology group Czechoslovak Group (CSG) have announced the launch of the investment fund Presto Tech Horizons.
- The target size is 150 million euros.
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Presto Tech Horizons is interested in companies developing dual-use solutions that can be used for both civilian and security purposes, primarily from NATO and allied countries.
Investments will be focused on enhancing personal safety and privacy, as well as the security of businesses, institutions and nations.
Investments will focus on areas such as AI, cybersecurity, automation, robotics, logistics, defense, aerospace, mobility, energy, healthcare, advanced computing, and systems for managing and protecting critical infrastructure.
Overall picture
Defense Industry Report It represents an era of dynamic change and technological advancement in the global defense community.
Historically, VCs have been reluctant to invest in defense techBut that trend is now changing: Venture capital funds are showing interest in the sector, betting that startups will drive innovation in both Europe and the U.S. For example, the U.S. defense technology market is expected to expand at a compound annual growth rate of about 16 percent, according to a recent PitchBook report.
According to Dealroom, European defense startups are seeing an increase in funding rounds, securing $614 million in deals in 2023, up from $408 million in 2022.
In 2022, NATO launched a $1 billion startup fund and tech accelerator, the first time a military alliance has backed an emerging technology and signaling growing interest in supporting early-stage startups in the sector.
Their background stories
Founded in 2016, venture capital firm Presto invests in technology companies and helps them expand into global markets. According to company data, its funds have achieved an average internal rate of return (IRR) of around 30%.
CSG is an international industrial and technology group specializing in aerospace and defense, made up of more than 100 companies across eight countries. Main segments include ground equipment, transportation systems and vehicles, radar, military security and recording systems, and aviation systems.
The two companies plan to work together to invest in innovative companies in the security and defense technology sector.
In Their Own Words
“For young, technologically advanced companies, it is often difficult to find the right investors. By joining forces, Presto and CSG have created a unique partnership that is unparalleled in Europe. Our fund brings together the best in tech investments, global company building know-how and industrial technology expertise,” explains Premysl Rubes, founder and managing partner at Presto Ventures.
Michal Strnad, Chairman of the Board and Owner of CSG Group, said: “At CSG, we have a long history of creating solutions and products that future generations can leverage. We seek out the best talent and technology. Together with Presto, we will identify opportunities and develop our portfolio companies to deliver solutions that add maximum value and have a positive impact on society.”
“We know firsthand how challenging it is to turn research and development into industrial products that can thrive in the defence, security and law enforcement sectors, not just for private companies but also for governments and government agencies,” he added.
