Under the PFR Starter programme, a dedicated Science module has been introduced to enhance the transfer of technology from the research sector. The module offers more favourable economics for fund managers and private investors, provided that the programme conditions are met.

Funds that invest at least 40% of their capital in companies originating from the scientific sector may benefit from increased asymmetry, up to 3.5x profit.

Is there a dedicated call for funds pursuing a Starter Science strategy?
Applications are submitted under the PFR Starter programme. The offer should indicate the intention to pursue a Starter Science strategy in the Offer Identification Form (Appendix 2 to the Call Rules), including the expected level of profit asymmetry upon reaching a 40% investment threshold in science-sector companies. The offer should also include a description of the planned implementation of the strategy in the Applicant’s Investment Policy (Appendix 3 to the Call Rules), as well as an indication of which potential investment projects originate from the scientific sector (Appendix 5). 

What happens if a Starter Science fund does not achieve the required level of investment in science-sector companies?

If a Starter Science fund fails to meet the minimum investment threshold in science-sector companies — i.e. at least 25% of portfolio value at acquisition cost — it will lose its Starter Science status and operate under the standard terms applicable to PFR Starter funds.

Can existing PFR Starter funds implement a Starter Science strategy?

Yes. Interested funds should submit information to PFR Starter in a manner similar to the application process. For funds that have already made investments, it is additionally required to indicate which portfolio companies originate from the scientific sector, based on the classification referred to in point 6a of the Term Sheet (Appendix 7 to the Call Rules), along with the information necessary for verification. Granting Starter Science status requires approval from PFR Ventures through an amendment to the Investment Agreement, which must also be accepted by Private Investors.

How are the Starter Science programme conditions defined?

A Starter Science fund should assume the investment of at least 25% of its Investment Budget, and ultimately at least 25% of its portfolio value at acquisition cost, in companies from the scientific sector.

Science-sector companies are defined as those which, at the time of the First Investment, belong to Group A and hold intellectual property (‘IP’) developed: within research organisations (automatically classified as science-sector companies), or by scientists or within enterprises conducting R&D activities (in both cases subject to classification by PFR Starter following verification of relevant criteria).

Research organisations include universities, scientific institutes and research institutes referred to in Article 7(1)(1–8) of the Act of 20 July 2018 – Law on Higher Education and Science.

How does PFR Starter verify whether a company originates from the scientific sector if key IP was developed outside research organisations?

In such cases, verification is based on a set of criteria. The IP should result from documented research activity conducted by its creators or co-creators as academic staff, doctoral candidates, or students in STEMM fields (Science, Technology, Engineering, Mathematics, Medicine), i.e. fields requiring advanced scientific and technological solutions.

The creator or co-creator of the IP does not need to be affiliated with a research organisation at the time of investment; however, they should hold a significant stake in the company and perform an appropriate role.