PFR Ventures invests EUR 55m in four green investment funds
February 1, 2023
PFR Ventures, Poland’s fund of funds that invests in venture capital and private equity teams, announced the investment of EUR 55 million in four green venture capital and growth equity funds, under the PFR Green Hub FoF programme. It’s the newest bid to foster green innovation in Poland and finance the development of innovative climate technologies that look to address the climate crisis.
PFR Green Hub is one of the strategic programs of the Polish Development Fund, with the goal of supporting the energy transformation in Poland. PFR GreenHub FoF is a program that supports venture capital teams that specifically aim to finance innovative ClimateTech projects. It is managed by PFR Ventures, which joins VC and PE funds as an LP.
As of the end of the year 2022, PFR Ventures has signed agreements to invest with Contrarian Ventures, Eurazeo, General Atlantic’s BeyondNetZero fund, and Montis Capital. All these funds execute green strategies that involve investments in projects and companies tackling climate challenges and energy transformation. PFR Ventures has invested a total of EUR 55 million in the funds.
We have created a program that is unprecedented in the European Union. We understand that energy transformation is not just about large investments in the infrastructure. Every innovative product or service that brings us closer to reducing emissions is worth funding. We want to create an environment for the founders and investors by stimulating capital investments in innovative, green projects
says Bartłomiej Pawlak, Vice President of the Polish Development Fund.
Contrarian Ventures is a pan-European, Seed-stage ClimateTech VC. The fund is dedicated to closing the funding gap facing future climate-tech founders, and usually invests around EUR 1.5 million to 4 million, often as a first cheque investor. The team has already backed 22 companies from 8 countries. PFR Ventures joins its second fund, with the target capitalization of EUR 100 million. Contrarian recently reached the second close mark; it is currently in final negotiations with a number of additional LPs and expects to reach its fund target this quarter - with final close following by the end of the year.
Eurazeo has a diversified portfolio of EUR 32.4 billion euro in assets under management, invested in 530 companies. With its considerable private equity, private debt as well as real estate and infrastructure asset expertise, Eurazeo accompanies and supports development of companies of all sizes. PFR Ventures joins its newest Eurazeo Smart City II Fund. At the crossroads of digital technologies and the transition towards more sustainable cities, the Fund’s focus is to invest in high-growth, innovative companies fostering the transition towards more livable and sustainable cities. The fund will invest in the most critical sectors to transition towards a low-carbon economy worldwide: Energy, Mobility, Logistics, Buildings, and Industrial Tech.
Both Contrarian Ventures and Eurazeo aim to increase their presence in Poland by investing in local companies and hire resident Venture Partners.
General Atlantic is a leading global growth investor and a pioneer of the growth equity space, with more than 40 years of investment experience and USD 73 billion in assets under management, as of September 30, 2022. PFR Ventures has committed to the firm’s climate fund, BeyondNetZero, which invests in growth companies delivering innovative climate solutions that have the potential to meet and exceed net zero emissions targets. BeyondNetZero combines General Atlantic’s growth equity experience and global platform with a team of seasoned climate investors, advisors and industry executives who bring decades of experience in both addressing climate-focused problems and building pioneering growth companies.
Montis Capital is a Polish venture capital firm that has been successfully supporting the Polish ecosystem for almost 5 years, with focus on financing hardware & software, deeptech and climate tech. Since the launch of its first fund, with EUR 30 million in assets under management almost, it has already invested in 10 companies. Almost 50% of allocated capital financed activities that contribute to climate and sustainability goals. PFR GreenHub joins the second fund launched by Montis Capital, dedicated to support climate and sustainable technologies in sectors like energy transition, circular economy, pollution reduction, waste management, and climate software.
We are aiming for a diverse profile of funds in our PFR GreenHub FoF portfolio. The first four teams include local, regional, and pan-European investment firms. They differ from each other in terms of investment strategy, and especially when it comes to the stage of the company’s development. This helps us adapt to the market needs. We are fully aware, that there’s a lot to be done in terms of green innovation in Poland, with the only ClimateTech company that went beyond the early stage being Airly. And the team achieved that almost without the participation of Polish funds. With PFR Green Hub FoF we want to make sure that we don’t miss another chance like that
says Małgorzata Walczak, investment director at PFR Ventures.
Following the first batch of green investments, PFR Ventures plans to conduct market research and potentially increase the allocation to ClimateTech strategies.