Talking Heads: Elemér Eszter (Impact Ventures)
As Central and Eastern Europe's venture capital ecosystem continues to mature, a new generation of investors is proving that doing good and doing well aren't mutually exclusive. A few weeks before the CEE4Impact Day in Budapest, we spoke with Elemér Eszter, the chair of the Impact CEE association hosting the event. Topics included the remarkable transformation taking place across CEE markets—and why Ukraine's reconstruction presents both an urgent challenge and a defining opportunity.
When Elemér Eszeter reflects on Central and Eastern Europe's investment landscape, he sees a region that's finally hitting its stride. Tech enterprise value has more than doubled from €89 billion in 2019 to €213 billion in 2023, and even during global contractions, CEE proved remarkably resilient, dipping only 15% compared to Western Europe's 35% decline.
But the real transformation lies in impact investing's emergence as a credible force. "When we look at venture capital in the region, the numbers are actually quite encouraging," he explains. "But when it comes specifically to impact venture capital, there was a noticeable gap for a long time."
This gap has deep roots. Unlike Western markets where philanthropy spans generations, CEE's wealth is barely thirty years old. "Our 'old money' is barely three decades old," Elemér notes. "For a long time, the focus was simply on building wealth, not redistributing it."
Rigorous Standards Create Credibility
The European Investment Fund’s fund-of-funds structure proved transformative, despite its rigorous vetting process. “It took us nearly three years to get our first EIF-backed fund off the ground,” Elemér recalls. “I felt grilled like a chicken, but that level of discipline was essential. Without such a thorough and, at the same time, supportive approach, our success simply wouldn’t have been possible.”
Today, nearly every CEE country has at least one impact fund, with established players like Feelsgood Capital in Zagreb, Simpact & Radix in Warsaw, RocaX & Early Game & Catalyst Romania in Bucharest, Serdica Capital in Sofia, Katalista Ventures in Vilnius, CB ESPRI in Bratislava and Impact Ventures (Budapest) managing multiple vehicles. This discipline has created fund managers who understand that impact investing delivers competitive returns—the EBRD reports 2.09x gross and 9.95% net over ten years—while addressing social and environmental challenges.
For investors considering CEE impact funds, Elemér's message is clear: "Giving back isn't charity—it's about de-risking the future. When you invest in society, you increase your chances of living in a peaceful, healthy society."
Celebrating a Decade of Progress
This historical shift will take center stage at the upcoming CEE4Impact Day in Budapest—a flagship event hosted by the Impact CEE association, marking its tenth anniversary. Scheduled for October 9th at the Museum of Ethnography, the conference represents more than just another industry gathering.
"For me, this event is really about three things: knowledge shearing, networking, and celebration," Elemér explains. The agenda brings together voices from across Western Europe and North America, fostering the kind of cross-border collaboration that impact investing requires.
“The celebratory aspect holds special significance this year. The Smart Capitalism Award will honor the founding figures of Central and Eastern European impact investing—recognition that extends beyond individual achievements to acknowledge an entire movement coming of age.”
A complementary event, LPsOnly, will take place the following day at Hungarian Art and Business. Unlike traditional conferences, this invitation-only, closed-door forum excludes general partners entirely, creating space for limited partners to engage in unbiased, peer-to-peer dialogue about market trends and co-investment opportunities.
Urgency in Ukraine
Perhaps no topic carries more urgency than Ukraine's reconstruction. For Elemér, this represents both impact investing's greatest challenge and its most compelling opportunity. "Ukraine is a traumatized society," he states bluntly. "If Europe wants to support its recovery, we must acknowledge that even a second Marshall Plan, built solely on profit-motivated capital, would not be enough."
“Traditional investment flows”, Elemér explains, “prioritize financial returns above all else—necessary, certainly, but insufficient for addressing deeper social wounds or building long-term resilience. The risk of reconstruction that enriches a few while leaving society fractured looms large.”
"What Ukraine truly needs is a significant portion of impact-driven capital," he argues. "Money that comes not only with the aim of rebuilding infrastructure and businesses, but also with a mandate to rebuild communities, strengthen social cohesion, and ensure transparency and accountability in the process."
For Elemér, this isn't idealism—it's pragmatism. Impact-motivated investment can help address privatization challenges, corruption risks, and the urgent need to heal a war-scarred society. It doesn't replace traditional capital but complements it in ways that are vital for sustainable recovery.
Impact Europe at the Event
Complementing our chat with Elemér, we like to remind our network that Impact Europe will be present at the event through two EU-funded market building projects: Impact Seed and Invest For Change. As part of these projects, we are bringing a range of partners from different CEE and Western Balkans countries, as well as their stakeholders, to help inspire new investments and programmes. Social entrepreneurs from the Impact Seed project will also be pitching at the event.
As CEE celebrates a decade of impact investing progress, we believe the region offers a compelling proposition: competitive returns, disciplined management, and the chance to build something meaningful. If you want to get involved, do not hesitate to reach out to us and we are happy to assist your (first) steps in the region.