PFR Ventures signed the first investment agreements with venture capital funds
June 12, 2018
PFR Ventures, the first institutional investor in Poland acting as the Fund of Funds entered into investment agreements with 7 venture capital funds. The fact that the agreements have been signed means proceeding with the implementation of the PFR Ventures' strategy, and specifically offering financing to innovative SMEs through experienced managing teams. PFR Ventures is negotiating subsequent agreements as part of all five Funds of Funds under its management.
PFR Ventures signed investment agreements with the following entities:
As part of PFR Starter FIZ:
Tar Heel Capital Pathfinder
Ventures For Earth
As part of PFR Biznest FIZ:
As part of PFR Otwarte Innowacje FIZ:
The commencement of investment process in start-ups by the above venture capital funds calls for approval by the Polish Financial Supervision Authority (KNF) and the Office for Competition and Consumer Protection (UOKiK).
Innovativeness is an opportunity for development for the Polish economy. We hope that thanks to the Strategy for Responsible Development the innovativeness rates in our country will be on an increase. To this end we're using, among others, EU funds and building a thriving venture capital market. It allows companies to develop their products and become more competitive on global markets. Innovations call for courage. They may be risky. That's why it's so important to combine funding with an appropriate support from experts
says Minister of Entrepreneurship and Technology Jadwiga Emilewicz.
Venture capital is a modern way to fund start-ups and developed companies alike. It allows to use the capital, managerial experience and business contacts of investors and ensure company's swift growth. We've allocated over PLN 2 bn to this sort of support via the Smart Growth Programme. It was followed by concluding contracts with intermediaries, which is extremely important: it means that the money will soon go to companies. I don't doubt that the number of funds reaching these Smart Growth Programme monies will grow quickly and soon we'll hear about successful investments in enterprises, and especially about their results
says Minister of Investments and Development Jerzy Kwieciński.
One of the key objectives of so-called Morawiecki's Plan is to increase the funding base for Polish enterprises and support their innovativeness. A response to these challenges was PFR Ventures – the largest platform in the region for venture capital funds totalling PLN 2.7 bn. By choosing funds for cooperation, our main focus was: monies must be managed by professionals who have the same goal as we do, i.e. having a successful investment. We don't conceal that we've set the bar high for funds willing to obtain monies from us. We believe that it is necessary for funds having the right competence to receive monies and provide actual support for these young, innovative companies", says Paweł Borys, President of the Polish Development fund (PFR). "The Start in Poland programme in deed builds a strong Polish innovation eco-system. We would like to express our gratitude to Minister of Entrepreneurship and Technology Jadwiga Emilewicz, Minister of Investments and Development Jerzy Kwieciński, the Polish Agency for Enterprise Development (PARP), and the National Centre for Research and Development for their cooperation and support
adds Paweł Borys.
VC funds have been chosen by PFR Ventures due to their investment, enterprising, and industry experience that matches the profile of activity conducted by the start-ups they want to invest in. Each of the selected seven managing teams, thanks to their unique know how, is able to bring an added value to their respective portfolio companies by providing them with so-called smart money e.g. by giving support in operating activities, communication with experts, obtaining clients, counterparties, and additional funding for growth
says Maciej Ćwikiewicz, President of PFR Ventures.
PFR Ventures funds were created with innovative SMEs in mind, regardless of their development stage, be it pre-seed (which is the earliest one), seed, early stage (first implementations), and last but not least growth and expansion.
PFR Starter FIZ is a fund whose means totalling PLN 782 mn and private monies allow to finance the development of innovative companies at the earliest development stage (pre-seed). Equity support will be obtained by companies looking for monies to start or develop their innovative activities in the Republic of Poland (regardless of their development plans regarding other markets) based on their respective business plans. Venture capital funds will guarantee returnable funding, along with knowledge and mentoring. This will allow entrepreneurs to have greater chances to achieve a commercial success. The investments in innovative enterprises will amount to PLN 3 bn.
PFR Biznest FIZ is a financial instrument having PLN 258 mn at its disposal. The fund will offer financial support for SMEs at an early stage. Investments in innovative companies will be made by financial intermediaries co-investing with Business Angels that will help implement interesting ideas by providing companies with their experience, contacts, and contacts (smart money). PFR Biznest will in total invest PLN 260 mn; the same amount will be invested by Business Angels. Young companies will gain access to funding in the form of a capital investment or e.g. a loan replaceable with shares. The investments in innovative enterprises will amount to PLN 4 bn.
PFR Otwarte Innowacje FIZ was established with enterprises at the stage of technological development in mind. It will support SMEs at the stage of technological acceleration, development, and ultimately implementation of technological innovations and R&D projects obtained through open innovations with a large market potential. Refundable funding with an allocation of PLN 421 mn will be granted by venture capital funds that will involve the assets of private investors (e.g. enterprises dealing with a given industry). As part of PFR Otwarte Innowacje FIZ, the investments in innovative enterprises will range from PLN 5 to 60 mn.