Michal Šmída’s entrepreneurial journey started more than 10 years ago, with Twisto. A buy-now-pay-later solution founded in 2013, when online shopping was not a fraction of its current size, and when the majority of people still paid for their goods by cash on delivery… Fast forward to 2020, Twisto exited, Australia’s Zip bought it, and it eventually ended into arms of Turkish owner Param.

Meanwhile, Šmída became Non-Executive Director on board 4 Czech startups (Birdwingo, Malcom Finance, DODO and VOCALLS) which was in itself an interview material. However, his last posting, as a CEO and investor at RockawayQ, put more immediacy to it.

Supporting transformations

Some of you may be wondering what RockawayQ is now. Czech private equity investment platform Rockaway Capital, with a strong track record in CEE and DACH, fairly recently sprouted a new investment division. RockawayQ is focused on transforming established B2B companies into market leaders by harnessing the power of AI and expertise.

How did it come to be? Šmída points out how various businesses (both tech, SMEs, and manufacturing), that have operated in the past decade(s), are facing a critical juncture. “They will either digitalize and implement the latest AI tools into their business and operations or perish in the face of global competition and new tech companies.”

That’s where RockawayQ comes into play. He elaborates that RQ wants to become “a key know-how and IP holder that helps companies transform and up their game in the new digital era.”

“We want to do this by deploying capital to finance transformation, implementing relevant AI tools, and helping companies reach their full potential. We want to be an active, hands-on partner that helps companies unlock growth potential, both locally and globally.”

Not your classic fund (structure)

RockawayQ currently operates with invested funds of €20M, and in the next few years they plan to increase this capital to 50M – 100M euros. In the first phase, the search for ventures will be mainly in the Czech Republic and Slovakia, from where they will gradually move further in Europe.

Also, RQ doesn’t have a classic fund structure with a fixed investment period, Šmída shared for CzechCrunch.

“Our goal isn’t a quick exit, and we are flexible in terms of the structure of our investments and the holding periods of companies. We’re looking for firms where we can generate dividends over the long term and actively participate in their operations.

Unlike typical investors, we’re also flexible in the structure of our investments, which allows us to carry out primary investments—direct capital injections into companies to support their growth—as well as secondary transactions, such as purchasing stakes, ranging from significant minorities to 100% ownership, from existing shareholders or investors.”

They will be looking for companies in the B2B segment with an EBITDA profit between cca 1 million and 4 million euros and a turnover of 15 to 20 million euros. These companies usually would have around 150 to 300 employees.