Commentary: Czech investors are obsessed with real estate; startups are struggling to survive or are leaving

The Czech startup scene is not doing badly by international standards. We have talented developers, we do not lag behind technologically, and a solid number of young companies are emerging here. But as soon as we get to the most important part—the ability to actually commercialize results, scale up, and finance ideas over the long term—our position quickly fades. Not because there is no money here. But because it is flowing elsewhere.

This is not just a Czech problem; it is more of a European pattern. Israel, a country the size of Moravia, has the second-strongest startup ecosystem in the world thanks to the courage of its investors, and more tech unicorns than all of Central Europe combined. While a typical Series A investment in the USA is ten to twenty million dollars, in Europe it is barely half that. In Series B, American firms deal with volumes two and a half times higher. Such a difference is not cosmetic—it determines who will be a leader and who will remain stuck with just an idea without commercial value.

Meanwhile, Czech investment thinking has long been stuck on real estate. Pension and institutional funds stick to tried-and-true, cautious strategies, as if the technological revolution were happening elsewhere. But today, it is setting the pace literally everywhere. Artificial intelligence has become the fastest-adopted technology in history and will be the foundation of most innovations in the coming years. Czech startups know this and are riding the wave: alongside AI, they are growing in fintech, health tech, software, and data services. We have no problem with the concept.

The obstacles lie elsewhere. This was confirmed by a study performed last year for the startup association, the Ministry of Industry and Trade, and CzechInvest. Two main barriers keep recurring: a high administrative and tax burden and inflexible conditions for hiring talent on the one hand, and a lack of growth capital on the other. The first is a task for the government. The second is a reflection on investors. Six out of ten startups cite access to capital as a major problem—due to weak venture capital, low risk appetite, and significantly lower investment amounts than in mature startup ecosystems.

The result? A third of startups have already left or are seriously considering moving abroad, and other young companies are open to the idea. Not because they want to leave. But because once a company gets past the initial local phase and wants to grow, it often has no one to turn to at home. It simply cannot find the capital needed for further growth here.

Yet it is possible. Specific examples demonstrate this. An injection of venture capital helped the Czech startup Partory, which is now developing the use of AI in industrial procurement and expanding abroad.

And this is where I would like to end with a challenge. If Czech startups are to stay home and grow into global players, they need more than praise. They need the courage of investors to break existing patterns, step out of the shadow of “bricks and mortar,” and embrace venture capital as a natural part of a modern portfolio. Yes, it is riskier. But without risk, we will never be more than an assembly plant. The world has moved on—and Czech capital should too.