TAURON, in concert with the PFR and the NCBR, create the first Corporate Venture Capital (CVC) fund
Innovative solutions projects for the energy sector which are a response to market challenges pertaining to the activity of the TAURON Group fall within the interest of the new fund: EEC Magenta.
Established by TAURON, the Polish Development Fund (the PFR), and the National Centre for Research and Development (the NCBR), the Corporate Venture Capital fund, or "CVC", (managed by the PFR) is the first entity of this sort on the Polish market.
One of the strategic objectives of the PFR involves developing the market of funding young, innovative venture capital companies in Poland. It's an important part of modern economy 4.0. By implementing the programme "Start in Poland", we're building a comprehensive eco-system that will make Poland a European innovation hub. The EEC Magenta fund is the first project of this sort on the Polish market. The fund is composed of a professional, experienced managing team from Silicon Valley. Regardless of the source of capital, the managing team will invest on market teams while trying to maximise the goodwill of investment companies as well as the value of portfolio for investors
says Paweł Borys, President of the Management Board of the Polish Development Fund.
TAURON will invest in two funds created as part of the two PFR Starter programmes: FIZ and BRIdge VC / PFR NCBR CVC. As a result, it will be possible for TAURON to ensure a multi-stage support for innovative companies by, among others, providing the possibility of taking part in acceleration programmes, early investing in enterprises as part of PFR Starter FIZ, and ensuring subsequent funding rounds as part of PFR NCBR CVC. The last one was established within the framework of the Fund of Funds CVC launched by the NCBR last year. Half of the PLN 880 mn is NCBR's monies.
The target capitalisation of the fund established as part of PFR Starter FIZ will amount to PLN 50 mn, and that of the fund established as part of PFR NCBR CVC – PLN 160 mn. TAURON's involvement in the funds will not exceed 25% and 49%, respectively.
The funds established within the framework of PFR NCBR CVC and PFR Starter will be managed by a professional managing body that is independent from investors: EEC Magenta. It fathers experienced managers with extensive experience in investing in innovative companies both in Poland and in Silicon Valley.
The selection of forms of financing using PFR Ventures’ means while establishing a CVC fund is mainly related to the possibility of using PFR’s experience in fund management and capital diversification and, as a consequence, the limitation of the risk on the part of TAURON. According to the assumptions of the new fund, the increase in the goodwill of portfolio companies will be ensured by providing the financial means critical for development. As part of capital investments by providing smart money, ensuring substantive support in terms of creating competence regarding the development of the undertaking, a special emphasis will be placed on strategic planning and management as well as strengthening relations in sectors to which the portfolio companies will offer their respective products and services.