A new PFR Ventures program: PLN 200M for green VC funds

PFR GreenHub FoF is a new program managed by PFR Ventures. It aims to stimulate VC and PE investment into green (eco-friendly) innovation. PLN 200M has been allocated for this purpose.

PFR GreenHub FoF is a program initiated within PFR GreenHub — the Polish Development Fund’s strategic initiative, to facilitate the process of transforming the Polish energy sector. The Project carried out by PFR Ventures will be an investment vehicle, which provides funding for Venture Capital and Private Equity funds with eco-friendly innovation investment inscribed in their investment strategies. 

PFR GreenHub is a broad-scoped project where we plan to make direct investments into large-scale undertakings, provide capital support for local government investments and integrate the green system of Polish innovation. The PFR GreenHub FoF is an essential element of the project, with the purpose of delivering indirect funding to young and innovative companies with aspirations to create technological solutions meant to protect our planet

– says Bartłomiej Pawlak, Vice-President of the Management Board of the Polish Development Fund

It is the first PFR Ventures program, where we look at the market from the perspective of industries and not the development stage of companies. This model allows us to inject funds into those companies which are truly capable of supporting the process of transforming the energy sector. This approach would not be possible without first developing a stable basis for funding start-ups

– says Maciej Ćwikiewicz, President of the Board of PFR Ventures.

PLN 200M has been allocated for the purpose of investing in VC and PE funds. A single fund may obtain up to PLN 80M. The funds from PFR GreenHub FoF may account for a maximum of 50% of its capitalization.

We want to allocate PLN 200M first. The money should be sufficient for investment into 4 or 5 funds. If the program gains interest, we will seek the possibility to increase the budget

– says Magłorzata Walczak, investment director responsible for PFR GreenHub FoF.

The funds which intend to reach out for PFR Green Hub FoF funding must exhibit a proper investment strategy. Their investment activity should be focused on companies operating within the areas of GreenTech, renewable energy, or climate-tech. Verification of ESG parameters (issues related to the environment, social responsibility, and corporate governance) within their investment portfolios is a crucial element of the program. The funds are to be distributed primarily among projects at more advanced stages of development (growth/expansion).

The management teams will be able to apply to PFR GreenHub FoF from the beginning of June. Recruitment will be continued until all funds are allocated.

European Union directives dictate that the Member States should obtain 20% of their energy from renewable sources in the total energy consumption and 10% for the transportation sector. The goal for Poland is 15% within the renewable energy sector and 10% for transportation fuels. PFR GreenHub is one of the programs which are to support the achievement of this goal.

Before launching the program, PFR Ventures carried out an analysis of similar solutions across Europe. Programs conducted by the German KfW, British BBB, or Norwegian Nysno were verified, and two rounds of consultations were arranged with market representatives.