The Startup Ecosystem of Czechia

The relatively low cost of living in Czechia, along with low tax rates and a central location in Europe, are major contributors to its potential growth and status as an attractive location for foreign entrepreneurs. P Rohlik is the first unicorn in the country, showcasing Czechia’s potential to produce scalable, high quality startups. Rohlik is an e-grocery app, but it is also worth noting that high-tech industries and the gaming sector are already developed in the country with several promising startups such as Madfinger Games and Geewa.
The Czech government, along with organizations like CzechInvest, are focused on developing the national startup ecosystem in a number of ways. Most notably, the government offers a Startup Visa for entrepreneurs establishing new enterprises in Czechia. The Czech government also announced the launch of a fund of funds to support three VCs in the country which will be managed by the European Investment Fund. A part of this fund will exclusively focus on supporting AI scientists. As well, the Czech government has announced a strategy to prioritize investment in innovative areas with a dedicated goal of becoming an innovation leader within ten years. In order to turn this into reality, the government is planning to increase public spending, conduct policy evaluations, and improve the IP regime.
Czechia’s capabilities are already visible from the comparatively high number of innovation activities among local businesses. Deeper investment in the local innovation ecosystem, like the aforementioned fund of funds, will help Czechia diversify away from manufacturing and strengthen its technology-based service and knowledge economy. Czechia’s prosperous economy and skilled workforce are two factors that create an enabling environment for innovative ideas to come to life.
All in all, it is evident that with plentiful investment from domestic and international sources, as well as the government’s vision for innovation, Czechia is fertile ground for entrepreneurs targeting the European market.