Is Prague a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Prague has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Prague gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Prague

Funding is one of the most critical ingredients in building a successful startup – and Prague offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Prague's early-stage funding scene is active, with several key players supporting local founders. Notable VC firms include Credo Ventures, Kaya VC, Rockaway Ventures, and Presto Ventures, many of which focus on early-stage investments in CEE tech startups. Angel investors are also present, with networks like the Czech Business Angel Association (CBAA) and platforms connecting entrepreneurs and investors. Government support is available through initiatives like CzechInvest's programs, though some grants may not cover Prague. Despite this ecosystem, challenges remain. A significant hurdle cited by investors is the perceived lack of quality startups, which some reports suggest is a bigger challenge than access to capital itself. Bureaucracy and limited access to broader financing options like a robust stock exchange also pose difficulties for early-stage companies.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Prague has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Prague boasts a thriving startup and innovation culture, positioning itself as a key hub in Central Europe. The city has a strong presence of coworking spaces catering to freelancers, startups, and established businesses, offering flexible work environments and networking opportunities. Entrepreneurial activity is significant, with Prague leading the Czech Republic in the number of new entrepreneurs. The ecosystem is supported by numerous tech events, meetups, and conferences throughout the year, facilitating connections and knowledge sharing. Prague offers substantial support for early-stage founders through a variety of accelerators and incubators. Organizations like the Prague Innovation Institute explicitly state their core mission is to support early-stage entrepreneurs with tailored solutions and expert guidance. While there are programs for more mature startups, the ecosystem actively nurtures ventures from their initial stages, providing mentorship, funding opportunities, and resources to help refine business models and scale.

For many entrepreneurs, the energy and resources available in Prague can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Prague, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Prague is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Prague offers a strong talent pool for startups, fueled by reputable educational institutions like Charles University and Czech Technical University, which produce a steady stream of STEM graduates. The city has a high density of skilled professionals in areas like app development and databases. This local talent supports entrepreneurial growth through a skilled workforce and contributes to Prague's thriving tech ecosystem, often dubbed Central Europe's "Silicon Valley". Government initiatives and a growing number of accelerators further bolster the environment for startups.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Prague can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Prague boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Prague offers a robust ecosystem for startups, featuring numerous incubators and accelerators like StartupYard, AI Startup Incubator, and ITACA Business Incubator, providing mentorship, workshops, and networking opportunities. Coworking spaces are also widely available. These resources help refine business models, access funding, and connect with partners. Government initiatives, primarily through CzechInvest, support startups with programs like CzechStarter and CzechAccelerator, offering expert help and facilitating access to funding and international markets. A new startup law is also being introduced to address financing and bureaucratic challenges. The Prague Innovation Institute, funded by the city, further supports early-stage entrepreneurs.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Prague. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Prague Be Considered the Best Place to Launch a Startup?

There’s no doubt that Prague provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Launching a startup in Prague presents entrepreneurs with several challenges. Competition is notable, particularly within established tech sectors like SaaS, Software Engineering, AI, Healthtech, Nanotechnology, E-commerce, and Marketing. While the cost of living is relatively lower than in Western European hubs, Prague is the most expensive city in the Czech Republic, especially regarding housing, which can impact operational costs and attracting talent. Regulatory issues also pose hurdles; navigating bureaucracy and obtaining necessary permits and licenses can be complex and time-consuming. Current employment and invoicing regulations may also not be ideally suited for the flexibility startups often require.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Prague or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Prague offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash