Tech Zity

🚨 Disclaimer

1. All research on startup and the whole investment memo has been done for personal use of Akim Arhipov.
2. The memo was created on the preliminary, not yet confirmed information. We will update it once things will will get locked.

Tech Zity is an infrastructure for success, however it is defined. It's not only about locations because we are creating more than that. We are people creating Tech Zity for people like you, so you could build your own success story here.

There are three main mission driven pillars:

1. Community, creation of 5k working stations
2. Sustainability, all buildings are in place, only renovation needed
3. City within a City concept, multi functionality of the premises

As the management of the fff.vc, we share the vision Darius is delivering through the project of Tech Zity. We understand and love the value of community thought our network and believe that Tech Zity is also about building a hub to the tech community in Lithuania. What better way to build bridges with our neighbour country.

Lithuania is striving to become one of the major European tech hubs, supported by a growing number of so-called "unicorn" startups and government efforts to attract a high-profile accelerator to the country. Meanwhile, a new private initiative of €100 million has been announced, aiming to create what could become Europe's largest tech campus, situated in the heart of Lithuania's capital, Vilnius.

Located on the premises of an old Soviet-era sewing factory in the city's New Town, the project named Tech Zity is set to open in 2024, offering office space for 5,000 workers, meeting auditoriums, and more. Furthermore, a key feature will be its focus on hybrid working, with a 24/7 ethos supported by co-living spaces, restaurants, and bars for socializing outside of work.

Spanning 55,000 square meters (592,015 square feet), Tech Zity would be nearly two-thirds larger than Station F in Paris, which opened in 2017.

Check more:

Lithuania's capital Vilnius to get 'Europe's largest tech campus,' costing €100M | TechCrunch

Tech Zity is a €100M initiative to create Europe's largest tech campus, located in the heart of Lithuania's capital, Vilnius.

techcrunch.com

Closer look

Tech Zity project consists of multi-location infrastructure, with the start of the project being put in 2013 by opening up Tech Arts Vilnius, which became home to a large community of innovative and creative minds. Followed by Tech Park Vilnius in 2016, Tech Loft Vilnius in 2020 and Tech Spa Druskininkai in 2021.

As things stan, Tech Zity community consists of nearly 2000 talents working in 90 teams.

To have a more closer look on the infrastructure:

Tech Zity Vilnius

Tech Zity is reviving the territory of Lithuanian sewing factory “Lelija” to its second life and turning all area into the largest sustainable technology hub in the region.

It will be a dynamic round-the-clock hub. 24/7 eat+work+live+play the most sustainable way to use the city. It will also enriches the fabric of the city featuring a publicly open museum of “Sustainability” in the staircases.

Total budget: 90-100m€ (85% of the costs are going to renovation and construction needs)

Instrument: Equity Financing (Fund will be created) + Debt Financing (classical banks to finance)

Business model: Building the campus, generating rental income, and accumulate value. Margin comes into play from construction and rental operations. Aim it to gain stability and look for an exit (sale), having 120m€ as the projected price.

Value proposition: Joining the fund in a form of an SPV at the valuation (TBC) of 30m€ / Aiming for 15% IRR / Participation will allow fund shareholders to gain value through the increasing value of the fund but, also, dividends in a form of yearly 10% will be paid out in addition.

Core Team: Darius Žakaitis (LT tech pioneer, Contrarian) / Mantas Mikuckas (co-founder of Vinted)

Fund Valuation of 30m€ is calculated: price of existing real estate - about 80% of the value / 20% is the proposition and infra that will be created. Please note that these numbers are being audited and put together as we speak, we will be sure to follow up once this data is 100% confirmed.

Whats next for the fff.vc members?

We are currently in discussion to receive an exclusive allocation (EE + LV) for the participation with tickets smaller than 300k, in a form of an SPV.

Allocation: up to 1m€

fff.vc fees: 7% one off fee + 7% carry

Valuation: 30m€ as things stand, this number is not final

Minimal ticket (for fff.vc members): 10 000€

Event

We're currently in final discussions with Darius Žakaitis, the head of given project, about participating as investors in this promising venture. It's likely that fff.vc will have the opportunity invest in a form of an SPV, exclusively bringing together and opening doors for smaller investors.

We're collaborating with the Tech Zity team to organize a special event for fff.vc members on September 6th (during the Startup Fairs investor day) to introduce this opportunity and showcase the premises to our members. It's also a great chance to spend time together and meet our fellow members from Lithuania.

The preliminary agenda for the event is as follows:

• Meet n' Greet + welcome drinks.
• Storytelling - present the project, provide updates on current status.
• On-site tour - show guests around the premises.
• Snacks and drinks + rooftop networking.

Please let us know if you'd like to join us: https://forms.gle/V9tGUdXyPFkg32jG9