First PFR Deep Tech investment: Expeditions II
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PFR Ventures has invested EUR 30 million (~PLN 130 million) in Expeditions II. The capital comes from the PFR Deep Tech programme, which the Polish Development Fund announced this May. Together with contributions from private investors, the fund will receive EUR 100 million, with its target capitalisation set to increase to EUR 150 million by the end of this year. This budget will be used for investments in advanced technology companies with dual-use potential.
Expeditions is a venture capital fund founded by Mikołaj Firlej and Stanisław Kastory, investing in companies developing technologies related to security and defence. As part of their first vehicle, launched in 2021, the managers provided capital to companies including Alpine Eagle, Blackwall, and Labrys. They also supported Polish projects such as Molecule.one, Nethone, and Oblivious. Some of these companies were also financed by other funds from the PFR Ventures portfolio.
The new fund will finance the growth of approximately 30 firms. Its investment strategy covers projects based on the application of artificial intelligence and other advanced technologies in the areas of defence, cybersecurity, quantum innovations, and the space sector.
‘PFR Deep Tech is an investment in the future of the Polish economy. I am pleased that the first funds under this programme have already been contracted to Polish funds supporting the growth of companies developing breakthrough technologies. This is capital that strengthens both our innovation and our strategic security,’ said Andrzej Domański, Minister of Finance and Economy.
‘The investment in Expeditions Fund under PFR Deep Tech is an important step in the implementation of our flagship programme. We are investing in a fund with Polish founders, who are highly competent and focused on building the value of companies developing the most advanced technologies. It is part of a broader PFR strategy to mobilise additional private capital and create comprehensive conditions for the development of breakthrough technologies in Poland. The growing defence spending across Europe is creating a unique window of opportunity, which as a country we must seize to build an ecosystem for Polish innovation,’ said Mikołaj Raczyński, Vice-President of the Management Board of Polski Fundusz Rozwoju (PFR), responsible for investments.
‘Our many years of experience in investing in VC and PE funds allow us to implement new programmes quickly. I am very pleased with the pace at which we are announcing the first agreement under PFR Deep Tech. The funds we have allocated will enable the development of the Polish advanced technology market, and the combination with private capital will ensure the precise selection of companies with the greatest potential,’ commented Aleksander Mokrzycki, Vice-President of PFR Ventures. – ‘We are also working on the other proposals we have received from management teams. I expect that in the coming weeks we will announce at least one more investment under this programme,’ he added.
‘Expeditions has been investing in early-stage technology companies in the security sector since 2021. We have quickly managed to build a leading position in Europe. Our goal is to support the most ambitious entrepreneurs in developing products that will be the future of the European defence sector and its new deterrence strategy. Poland has the chance to become a centre for dual-use technology, and we are proud to be able to work with PFR to achieve this goal,’ commented Mikołaj Firlej, Co-Founder and Managing Partner at Expeditions.
The PFR Deep Tech programme budget still has more than half of the planned PLN 300 million remaining. This capital will be allocated to other venture capital funds planning to invest in Polish advanced technology projects. The PFR Ventures portfolio currently includes 20 active Venture Capital funds with capital to finance nearly 400 Polish companies.