Rockaway Ventures is a venture capital fund under the Rockaway Capital investment group, investing in startups that are transforming traditional industries through next-generation technologies, with artificial intelligence at the forefront. The firm identifies and supports late-seed and Series A founders in Europe and among the European diaspora in the US.
Among the most successful investments by Rockaway Ventures are global platforms such as Productboard and Gjirafa. Other firms include Apaleo, a cloud-native hotel management platform used by brands such as CitizenM and EasyHotels, and Spotawheel, a disruptor in the car leasing industry.
Fund strategy overview
Geography: Europe
Preferred industries: B2B software, E-commerce, Travel & Hospitality, Industrial, Energy, Defense & Dual-Use
Investment ticket: 0.5-2m
Company stage: Seed to Series A
Product type: Software (hardware from time to time)
Product stage: functioning product
Revenues: early traction
Q&A with Petr Šmíd, General Partner at Rockaway Ventures
What are the main things you look for in a startup
- Founders who understand the problem
One of the most important factors is a team with deep industry expertise and clear, specific insights into why their business should succeed. We look for founders who look around every corner and know their industries inside and out. Their deep experience, whether gained through insight or obsession, enables them to identify transformative opportunities that others miss, giving them a competitive edge.
- A focus on real-world application
Strong execution capabilities are essential, as these founders must have the skills to turn their vision into reality and successfully manage the growth and challenges that come with scaling their business. They are focused on building a transformation whose time has come, not a solution in search of a problem.
- Transformative potential in essential industries
While we are sector-agnostic, we get excited by founders who can turn their deep industry understanding. The startups we invest in must have a clear and large market to target. We are interested in opportunities that have the potential for rapid and extensive growth.
- A global mindset from day one
We come from a small market. Therefore, we back founders who think bigger than their city, country, or even their continent, building for global markets from the very beginning.
What disqualifies a startup as your potential investment target?
A startup is typically disqualified if it lacks sufficient market potential or clear customer validation showing that it solves a real problem. We tend to pass on ventures that chase hype over substance. If the core idea is built around the “current thing” rather than addressing a fundamental industry pain point, it's not for us.
Our philosophy is to “Venture where others won’t,” but that doesn’t mean we go after marginal or niche opportunities.
We're looking for teams that are solving problems with global relevance and that have a clear path toward building a significant company. We also avoid startups that lack executional focus. We back builders who roll up their sleeves, rather than teams that operate on a purely theoretical level without a pragmatic plan to build a revenue-generating business.
What, in your opinion, differentiates the best founders from the rest?
The best founders have an intimate understanding of their industry. They know what limits it and what could set it free. They understand the crucial difference between creating an invention and building a business around its application. They grasp the difference between creating technology and applying it in ways that matter. They know how to form strong teams, serve real customers, and generate real profits. Above all, they think globally from day one. Their ambition is not to become local champions but to create companies with global relevance and impact.
What startups should take into account before making a deal with a VC fund?
Startups should first evaluate whether they truly have a high-growth opportunity, as venture capital isn’t just for solid businesses, but for those with the potential for rapid scaling. It’s equally important to assess whether the team is ready to use the capital effectively to drive significant growth. A VC partnership is a long-term commitment, and choosing the right partner goes far beyond raising funds.
Here are the key points to consider:
- Look for a partner, not just a paycheck. The right investor brings more than capital; they’re prepared to roll up their sleeves and stand by the team through both highs and lows.
- Seek operators, not theorists. Founders benefit most from investors who have built companies themselves and can offer relevant, practical advice when things get complex.
- Ensure the support matches your needs. Founders should expect more than guidance. They should look for real, institutional-grade support. At Rockaway Ventures, for example, we provide access to infrastructure and expertise typically available only to later-stage companies.
- Align on ambition and conviction. A strong partnership requires shared belief in the company’s long-term vision. Founders should look for investors who are not chasing trends but are deeply committed to the transformation the company is working to deliver.
What is your approach to startup valuation and preferred shares in the company?
We approach each investment individually, focusing on real market potential and the opportunity to drive meaningful transformation. Our priority is to back startups with the fundamental potential to transform essential industries, not those chasing the latest trend or caught up in hype cycles.
We invest at a level that allows us to be a true partner. That means being actively involved, providing strategic and operational support, and reserving capital for follow-on funding. We commit fully and stay engaged as the company grows.
How do you support your portfolio companies?
We provide more than capital. As founders first, we know what it takes to scale a business. This means we know when founders need deep operational support and, just as importantly, when they need us to step back and let them take the lead. Through Rockaway Capital, we offer something rare at the early stage. Institutional-grade infrastructure, strategic fundraising support, and access to a platform that is typically reserved for much later-stage companies.
We connect our founders with a network of experts who have tackled similar challenges and know how to turn deep industry insight into technical and commercial advantage. We help companies prepare for future rounds and open doors to international investors. Our goal is to be a partner that founders can rely on, with the experience, connections, and conviction to help them scale globally.
What are the best-performing companies in your portfolio?
Among our portfolio, we highlight companies like Apaleo and Gjirafa, which have shown significant market traction and leadership in their respective sectors. These companies are prime examples of the effectiveness of their business models and the teams behind them.
What are your notable lessons learned from investments that didn’t work out as expected?
One of the most important lessons we have learned is that even the most brilliant technology cannot succeed without the right founding team. The best founders know their industry inside out. Without that fit, it is almost impossible to build something that lasts.
We have also become more rigorous in distinguishing between bold vision and pure speculation. A transformative opportunity must be grounded in a deep understanding of the customer. It is not enough to chase an idea that looks exciting on paper.
As partners who stay close through tough times, we understand the importance of having honest conversations. We have learned when to support a pivot and when to recognise that a core thesis no longer holds. The hardest decisions become clearer when you have partners who have faced them before.
What are the hottest markets you currently look at as VC, and where do you see the biggest hype?
The biggest hype is currently centered around simple, surface-level AI applications. While some are interesting, we believe many are fragile and risk being made obsolete by the next foundational model update. We are not interested in chasing hype or following trends for their own sake.
We see the opportunity in emerging technologies can bring lasting value. We venture where others won't — the most meaningful opportunities lie in sectors such as energy transition, industrial automation, supply chains, and dual-use technologies. These are complex, essential industries where innovation can create real impact.
In your view, what are the key trends that will shape the European VC scene in the coming years?
We expect a return to fundamentals. The era of chasing growth at any cost is coming to an end, replaced by a renewed focus on quality over quantity. Investors will prioritise pragmatic operators who know how to build real businesses with sustainable profits. The emphasis will shift from vision alone to execution, resilience, and measurable value.
Europe is uniquely positioned to lead this shift. Its combination of world-class industrial expertise, deep research foundations, and exceptional technical talent creates fertile ground for innovation. Fields like advanced manufacturing and energy transition will continue to attract attention, especially where technology can bridge the gap between legacy systems and the future.
Global scalability will no longer be optional. In a fragmented world, building for global markets from day one is becoming a requirement for success. The most relevant VCs will be those with a proven ability to help founders scale beyond borders and connect European innovation with global demand.
