Presto Ventures and Czechoslovak Group Launch €150M Fund for Security and Defense Technology

Michal Strnad, Chairman of the Board and owner of CSG, emphasized the long-standing commitment of the group to creating solutions and products for future generations. “At CSG, we’ve long been creating solutions and products that future generations can build on. We seek out the best minds and technologies. Together with Presto, we’ll identify opportunities and develop portfolio companies to deliver solutions with maximum added value and positive societal impact,” said Strnad.

Strnad further elaborated on the challenges faced in transforming research and development into viable industrial products for the defense, security, and law enforcement segments. “Our success stems from our ability to manage both manufacturing and global trade. We’re prepared to share our experience with emerging innovative entrepreneurs who will become technological leaders,” he added.

Presto Tech Horizons is set to invest in promising technological projects from NATO countries and allied nations, focusing on dual-use solutions for both civilian and security purposes. The fund aims to enhance the safety and privacy of individuals and the security of businesses, institutions, and states. Key sectors for investment include artificial intelligence, cybersecurity, automation, robotics, logistics, defense, aerospace, mobility, energy, healthcare, advanced computing, and critical infrastructure protection, including radars, drones, lasers, and sophisticated sensors.

Premysl Rubes, founder and managing partner of Presto Ventures, highlighted the difficulties faced by young, technologically advanced companies in finding the right investors. “For young, technologically advanced companies, finding the right investor is often a challenge. By joining forces, Presto and CSG have created a unique partnership that is unmatched in Europe,” he said.

Rubes also pointed out the significant barriers to entry for investors, such as the inaccessibility of sector-specific expertise necessary to evaluate the quality of technology and its commercial viability. On the other hand, tech entrepreneurs often struggle with complex regulations, time-consuming processes, and the fulfillment of numerous formal criteria. “Our partnership with CSG directly tackles these barriers and risks,” Rubes explained.

As the industrial partner and one of the fund’s numerous investors, CSG plays a crucial role in this initiative. Each year, Presto Tech Horizons connects with up to 3000 founders of innovative companies addressing society’s pressing challenges. The fund supports driven tech entrepreneurs with global ambitions who already generate revenue and seek growth partners. The first portfolio investments are expected to be announced in the fall.

Presto Ventures, established in 2016, invests in fast-growing tech companies, supporting their development and global market entry. With a portfolio of over 60 companies from 20 countries, many of which have grown more than tenfold since Presto’s involvement, the firm boasts an average fund performance of 30 percent IRR (Internal Rate of Return). Top-performing companies include IP Fabric, Keboola, Sharry, Cloudtalk, and Simpleway. Recent additions to the portfolio are Zerops, Calypso Commodities, and Elin.ai. Portfolio companies receive hands-on support from Presto’s internal team and experienced entrepreneurs, many of whom are Presto investors. These mentors guide emerging entrepreneurs, facilitate strategic connections, and assist with business and product challenges, from market entry to exits.

Czechoslovak Group (CSG) is a global industrial and technology group involved in Aerospace & Defense across multiple segments. With over 100 companies spanning 8 countries, the group specializes in developing and manufacturing advanced defense and security systems. In 2023, CSG reported revenues of €1.73 billion, driven by key segments like ground equipment, transportation systems, vehicles (including Tatra-based solutions), radars, military security systems, recording systems, and aviation systems.

CSG’s long-term strategy emphasizes innovation, product development, and collaboration with industry leaders. Notable innovations include the hydrogen-powered Tatra or water extraction devices for desert environments. Their advanced radars, capable of seeing through walls, are utilized by US security services. ELDIS, a CSG subsidiary, provides radar coverage across India’s entire airspace. Within their aerospace division, software companies like CS Soft and ATRAC supply critical systems for managing civilian air traffic. CSG remains proactive in investing in emerging technologies such as XR and drone systems. Overall, CSG and its affiliates employ over 10,000 individuals worldwide.

The launch of Presto Tech Horizons marks a significant step in advancing security and defense technologies, addressing both civilian and security needs, and fostering innovation in crucial sectors globally.