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Financial Investment Forum: There is Enough Capital in Croatia for Excellent Founders

<p>Financijsko - investicijski forum 2024. Okrugli stol "Sektori u fokusu investicijskih fondova": Tomislav Tičić, Matej Runjak, Stevica Kuharski, Ivan Dujmović i Gordana Gelenčer</p>
Financijsko - investicijski forum 2024. Okrugli stol "Sektori u fokusu investicijskih fondova": Tomislav Tičić, Matej Runjak, Stevica Kuharski, Ivan Dujmović i Gordana Gelenčer / Image by: foto Ratko Mavar

The first day of Lider’s Financial Investment Forum concluded with a particularly interesting panel on investment funds, where Stevica Kuharski, a partner at Fil Rouge Capital, stated that there is more than enough capital in Croatia and the entire region for good companies and excellent founders.

– What we are looking for is an excellent team with a very good product, and what we provide is strategy, framework, and preparation for future rounds – said Kuharski.

Fil Rouge Capital is exclusively focused on the IT sector, and as Kuharski mentioned, they receive around a thousand funding applications each year. Naturally, the IT sector is specific compared to others, as IT companies can achieve growth of 20 to 30 percent monthly, which is unsustainable growth for other sectors, Kuharski noted.

While many might argue that startups from, say, France, the UK, or even the US are of higher quality than domestic ones, Kuharski claims that domestic startups are nearly on par with foreign ones, and he pointed out that one of the problems with young founders is the large amount of money they sometimes request for very little idea.

– The IT sector is specific because it is the easiest and cheapest to fail quickly, while in others, it tends to be much slower – said Kuharski.

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Financial Investment Forum 2024. Round Table “Sectors in Focus of Investment Funds”: Stevica Kuharski

photo Ratko Mavar

Matej Runjak from Advance Capital Partners also spoke on the panel, whose fund invests in IT, renewable energy, energy solutions, logistics, specialized trade/e-commerce, healthcare, and industry, and the fund also invests in other special opportunities that arise in the market.

– It’s not about industries but about companies – Runjak emphasized, asserting that there is enough room for all and that he believes the fund sector is still at the beginning.

– People are used to banks, and soon they will get used to us too – concluded Runjak.

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Financial Investment Forum 2024. Round Table “Sectors in Focus of Investment Funds”: Matej Runjak

photo Ratko Mavar

Tomislav Tičić from Prosperus Invest claims that investments depend on the investor and their preferences, stating that the arrival of a crisis in Germany could create more opportunities for domestic companies and funds. Prosperus, he says, prefers investments of five to seven million euros, but often the problem lies in the ownership stakes that make founders reconsider signing contracts; however, he emphasizes that negotiation is the most important aspect.

– We like people who want to stay with us in the story. We are not very happy if the founder completely exits – said Tičić, whose fund has been in the Croatian market for 14 years.

Of course, as with any business, there are restrictions, and for funds, these are restrictions on sectors they cannot invest in. An example is the military industry.

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Financial Investment Forum 2024. Round Table “Sectors in Focus of Investment Funds”: Tomislav Tičić

photo Ratko Mavar

– The sectors you invest in are extremely important for several reasons. When entering any investment, we know that as a fund we will have to exit the investment, so choosing the sector is important to see how attractive it is, how much investment already exists in it, the speed of growth… – stated Ivan Dujmović, who participated in the panel on behalf of Provectus Capital Partners.

However, in Croatia, there is still work to be done in raising awareness among entrepreneurs about how funds operate and function.

– You have entrepreneurs who are still afraid to go to banks for loans, and banks have been around for a long time, so it’s not surprising that they are also afraid of us. Therefore, it is important to raise awareness – concluded Dujmović.

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Financial Investment Forum 2024. Round Table “Sectors in Focus of Investment Funds”: Ivan Dujmović

photo Ratko Mavar

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