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There are at least 70 cities in Europe which have at least one unicorn in them – a very different pattern from the US/UK ecosystems. Over 20 of these cities are in Central and Eastern Europe (CEE). There is thus far more to CEE than a place to near-offshore your tech or dev team. In this episode Adam gives us both a tour de force et tour d’horizon of the vast region that is CEE – – I was certainly impressed with my lack of knowledge of the tech landscape in the region which has developed super-fast.
Adam is a rara avis having been a multiple-times founder, bank CEO and now long-term regional VC so has a super-good 360 degree perspective on the area which he leads us through.
Five years ago Adam co-founded OTB Ventures, an early-stage CEE VC based in Warsaw, who invest $1-15m in their CEE portfolio companies,
Topics discussed include:
- is tech concentrated in Warsaw or is it spread around Poland?
- other tech hubs in Poland
- Adam’s career journey – from great anecdote about how he started at BCG through founding several companies including perhaps of the first Fintech in the region in 2000 and Bank deputy CEO-ing
- experiences in Ukraine [in passing the podcast was recorded before the recent troubles]
- Angel-investing experience
- pivoting from Angeling to VC with a buddy who had been in Intel Capital for 18 years
- Kiev back in the day
- when was the CEE tech boom?
- reviewing the major features of the tech landscape in:
- Poland – 15-20yrs ago gaming industry was the early market leader with global reach; other sectors increasing over past 5yrs.
- the mid-size country gap – market big enough to get some success but not so small that one has to globalise right away
- Finland (some count as CEE (?!)) – very key
- Estonia – the largest number of tech unicorns per million people in the world
- Ukraine– less local market and more connected to the US market
- Czech – cyber-security especially
- Slovakia – developing fast
- Romania – UiPath listed on the Nasdaq is now worth $20bn…
- Bulgaria – eg Payhawk (who were the guests in LFP187)
- the importance of local successes in encouraging other entrepreneurs to believe that they too can create a success in the country
- reasons to offshore in CEE:
- price – pre-pandemic techies 1/3-1/4-ish of London rates, now ~1/2 London rate
- longevity as market less hot
- how to use CEE
- less about offshoring and more about putting the whole tech team in the region
- centering on a co-founder moving back into the region
- centering on a key tech guy in the region
- key-person-centric rather than “map centric”
- importance of not just regarding people as “interchangeable resource” hence importance of deep cultural insight into the country one chooses in CEE
- importance of global market thinking – eg Klarna, Transferwise
- outlook for next 5-10yrs
- “innovation is no longer happening in corporations but in startups by entrepreneurs”
- funding is now available in CEE countries
- “if the tech is good it is global not local”
- the long-view as the current tech boom marking the end of the WW2 period with CEE back as part of the continental economy
- OTB Ventures stands for Outside of The Box Ventures
- supporting founders not telling them what to do
- what he role of an investor is
- OTB focuses on real/deep tech – disruptive technologies that scale globally
And much much more 😉
Share and enjoy!