Greek Tech Boom: Marathon Venture Partners Secures €75 Million for Seed-Stage Investments

Athens, Greece is emerging as a significant European tech hub (Image Credits: Costas Baltas/Anadolu / Getty Images)

Introduction: Marathon’s €75 Million Fund

Marathon Venture Partners, a leading venture firm based in Athens, has successfully closed its newest fund with €75 million in capital commitments, according to partner Panos Papadopoulos. This significant funding round brings the eight-year-old seed-stage investor’s total assets under management to an impressive €175 million, highlighting the growing confidence in Greece’s burgeoning tech ecosystem.

The firm, which describes itself as “day one partners to Greek tech partners,” has achieved this milestone during a challenging global fundraising environment, reflecting both Marathon’s strong track record and the increasing potential of Greek technology startups on the international stage.

This fundraising success comes on the heels of several notable exits from Marathon’s portfolio, including the sale of portfolio company Augmenta to CNH, a maker of farm machinery and construction equipment, in a cash deal that valued Augmenta at $110 million. Marathon also sold some of its shares in Hack the Box, a cybersecurity upskilling and talent assessment platform, to investment firm Carlyle in a secondary transaction.

The Greek Tech Landscape: A Rising European Hub

Greece has historically seen less venture investment than other European countries, but recent years have witnessed a remarkable transformation in the country’s tech ecosystem. Marathon’s ability to raise a substantial fund in the current economic climate points to significant positive changes in Greece’s startup environment.

The success of Marathon’s fundraising effort comes as the country prepares to host TechCrunch’s first StrictlyVC evening in Athens on May 8, 2025, an event that will feature Greece’s Prime Minister, Kyriakos Mitsotakis, further highlighting the growing importance of the Greek tech sector both locally and internationally.

Marathon’s Investment Strategy and Portfolio Success

Marathon’s investment approach focuses on backing founders who tackle difficult challenges in important markets. According to Papadopoulos, this difficulty can stem from requiring unique knowledge, such as that obtained through a research PhD, or high agency, meaning a deep understanding of regulated or overlooked industries like power grid management.

“Marathon I is a top percentile performer globally in [realized returns]; we built a portfolio that captured the current zeitgeist well before, for example, AI-assisted scientific research, robotics or defense became the norm.”

This forward-thinking investment strategy has positioned Marathon to benefit from emerging trends before they become mainstream investment targets. The firm’s early bets on defense technology, for instance, predated the increased interest in the sector following the Ukraine conflict.

How Macroeconomic Changes Are Fueling Growth

Greece’s economic resurgence following years of financial crisis has created a more stable foundation for tech entrepreneurship. While the country’s improved macroeconomic situation has positively affected investor confidence, Papadopoulos suggests the relationship between economic hardship and innovation might be more complex.

“It’s always good when you are not making the press headlines, but what we do is less relevant to local macro. When it comes to the talent front, I would say truly based on naive empiricism that, if there is any correlation, that is inverse. Adversity is the mother of all invention,” Papadopoulos explained.

This perspective aligns with the resilience that Greek founders have demonstrated, developing capital-efficient approaches that are now highly valued in the current global investment climate that emphasizes sustainable growth over the “growth at all costs” mentality of previous years.

Greek Startups’ Global Market Approach

Contrary to the perception that Greek startups struggle to scale beyond their domestic market, Marathon’s portfolio companies have demonstrated remarkable international reach from their earliest stages. When asked about the challenges of international expansion, Papadopoulos provided a compelling counterpoint:

“I beg to differ. Greek startups leverage local talent to serve leading global customers and markets from day one. Across our portfolio there is virtually no revenue coming from the domestic market. But they are serving the best part of Fortune 500,” Papadopoulos stated.

This global-first approach represents a significant shift in how Greek tech companies position themselves. Rather than viewing their home market as a starting point before international expansion, these startups are designing their products and services for global markets from inception, using Greece primarily as a talent base rather than their primary customer market.

Exit Strategies in a Challenging Global Environment

The global venture capital ecosystem has seen extended holding periods for startups and fewer IPOs in recent years, prompting questions about exit timelines and return strategies. Marathon’s approach to this challenge reflects a pragmatic perspective on realizing returns.

“We don’t need decacorns for our fund economics to work. We invest early on, maintain substantial equity positions, and keep our fund sizes small. These provide for various opportunities for meaningful returns, including secondaries and strategic M&A, well before an IPO. We did secondaries back in 2021 when most of the market was promising infinite holding times. In our culture, cash is king. It seems that many others forgot it,” Papadopoulos explained.

This focus on multiple paths to liquidity, including secondary transactions and strategic acquisitions, has allowed Marathon to deliver returns to investors without relying solely on the increasingly elusive IPO or unicorn-status exit.

“We work with our portfolio companies toward default alive scenarios. Starting from there, all options are on the table. We see founders truly want to run their companies for the long term. We believe a secondary sale can actually help towards that, and most often we are supportive of such scenarios.”

Deep Tech and AI Investments in Greece

With many European venture capital firms emphasizing deep tech and artificial intelligence investments, Marathon takes a somewhat distinct approach that focuses on the founders rather than specific technology sectors.

“Of course we all are, but the definition of deep tech is stretched and means many different things to different people. We are not focusing on any specific sector per se – instead, we are focusing on people changing their sectors. We were perhaps the first generalist VC to invest in defense before the Ukraine war.”

This founder-centric investment philosophy allows Marathon to identify opportunities in emerging sectors before they become investment trends, as demonstrated by their early move into defense technology.

Future Outlook: The Road Ahead for Greek Tech

As Marathon Venture Partners deploys its new €75 million fund, the Greek tech ecosystem appears poised for continued growth despite global economic uncertainties. The withdrawal of some American VCs from European investments has created additional opportunities for local funds like Marathon.

“It is definitely a different market but also creates increased opportunity for European investors. I do not think the flood of capital in 2021 truly changed the opportunity for European companies. We must always count on ourselves and be aligned with founders for the long term.”

This self-reliant perspective reflects the resilience that has become characteristic of the Greek tech ecosystem. Rather than depending on external validation or capital, Marathon and the founders it supports are building sustainable businesses designed for long-term success regardless of market fluctuations.

As Greece continues its emergence as a European tech hub, Marathon Venture Partners’ latest fund represents both validation of progress made and a foundation for future growth. The firm’s success in raising substantial capital during a challenging fundraising environment signals increasing confidence in Greek technology companies and their potential to compete on the global stage.

The upcoming TechCrunch event in Athens featuring Greece’s Prime Minister further highlights the growing recognition of the country’s tech ecosystem. With a combination of skilled technical talent, capital-efficient business models, and increasing investor interest, Greece’s position in the European tech landscape appears stronger than ever—and Marathon Venture Partners is well-positioned to continue playing a crucial role in this ongoing evolution.