PFR Ventures invests over PLN 150 million in 4 Polish VC funds

PFR Ventures has entered into agreements with four Polish venture capital funds that invest in innovative companies in the country and the CEE region, including Inovo VC, Market One Capital, and SMOK Ventures. Throughout the past year, as part of the PFR VC Hub program, PFR Ventures committed over PLN 150 million from the Polish Development Fund's budget to these entities. The first agreements were signed at the end of 2022, and the last one in early 2024.

All investment teams have a well-established presence in the Polish market, with three benefiting previously from PFR Ventures' support through European Union-funded programs. This backing was leveraged to discover and finance innovative startups at their early stages, subsequently fostering their progression.

Funds with PFR Ventures as a Limited Partner are poised to significantly invest in the nation's innovators, earmarking over PLN 700 million for Polish companies. Their scope also encompasses a broader regional interest. Both Inovo VC and SMOK Ventures are set to extend or have already extended their investments to Central and Eastern European companies. Market One Capital not only participates in the regional focus but also supports startups from all over Europe, including France, Germany, and Great Britain. Details regarding the fourth fund will be shared in the future.

With the development of the Polish venture capital market, our offer is expanding. A few years ago, we made a decision to also finance the best Polish teams with PFR funds. We want the managers to have access to capital that gives greater flexibility in terms of investment strategy

explains Paweł Borys, President of the Polish Development Fund.

As we take a holistic view of the Polish venture capital market's evolution, our commitment extends beyond just increasing fund numbers and investor interest. At the heart of our strategy lies the goal to facilitate access to capital for Poland's innovative enterprises in an indirect manner. This is achieved by fostering enduring partnerships with premier management teams both locally and globally. The Polish teams we've recently backed have enjoyed our support for many years, demonstrating their reliability and ability to scout entrepreneurs with significant potential. These teams then offer substantial support by providing 'smart money,' sharing expertise and networks, and assisting in securing international fund capital for growth-phase development

says Bartłomiej Samsonowicz, Investment Director at PFR Ventures.

Inovo VC is currently running its third venture capital fund, with a capitalization of over EUR 107 million, which has so far invested in startups such as Quesma, LiveKid, and Fiat Republic. The team has been active since 2015 and its portfolio includes, among others, Polish companies Booksy, Infermedica, Jutro Medical, Packhelp, Spacelift, Tidio, Zowie, or Ukrainian Preply.

Market One Capital manages the second fund, with a target capitalization of about EUR 80 million. The team has been active since 2017 and invests in companies that use the so-called network effect and marketplaces in the B2B/B2C model. Market One Capital funds have in their portfolio such companies as Polish Packhelp and Jutro Medical, Lithuanian Ovoko, or German TIER Mobility.

SMOK Ventures was established in 2019 and to date has invested in 38 companies, including Authologic, Omnipack, SunRoof, and Vue Storefront. Its second fund manages USD 25 million and invests in startups from Poland and Central and Eastern Europe, as well as those established in other regions by people of Polish origin.

The fourth team will focus on financing companies in the growth equity phase from Poland and Europe. It is managed by a group of experienced managers. The target size of the fund is similar to the size of the other Polish funds in the PFR VC Hub portfolio.

PFR Ventures programs are fueled by capital from European Union funds or the own budget of the Polish Development Fund, complementing each other. PFR VC Hub invests funds from the PFR budget in experienced venture capital funds that invest in Polish companies. In the coming years, PFR Ventures will provide capital for 40 VC funds, in which it will invest about PLN 2 billion. The funds come from the European Funds for a Modern Economy (FENG) program.