Polish Early-Stage VC Scene Boosted by PFR Ventures’ €47M Investment in Four Funds

PFR Ventures, Poland's prominent Development Financial Institution, has recently invested in four new early-stage venture capital funds: 24Ventures, Digital Ocean Ventures Starter, Hard2beat, and Tar Heel Capital Pathfinder. The combined capitalisation of these funds exceeds PLN 250 million, which is roughly equivalent to €58.4 million, with PFR Ventures contributing approximately PLN 200 million, or €46.7 million.

This investment initiative is part of the European Funds for a Modern Economy (FENG) program, the largest national program dedicated to fostering innovation within the European Union. As a public manager of funds of funds under the Polish Development Fund (PFR), PFR Ventures collaborates with private investors, business angels, and corporations to channel capital into venture capital and private equity vehicles. The primary objective is to support innovative Polish companies at various stages of their development.

PFR Ventures is the largest institutional fund manager in Central and Eastern Europe (CEE), managing a portfolio that includes more than 80 funds and overseeing over 900 investments. These investment programs are supported by both the Polish Development Fund’s budget and capital from European Union funds, including the FENG program. The four newly established funds will be actively investing in companies until the end of 2029, followed by a four-year period dedicated to divestment. Each fund has a distinct focus:

24Ventures plans to invest in 18 projects with the potential for global scalability over the next four years. Digital Ocean Ventures Starter will direct its resources towards companies in the FinTech sector and those involved in AI-supported digital transformation. Hard2beat is concentrating on early-stage investments in DeepTech firms that are developing software-based solutions. Tar Heel Capital Pathfinder is investing in globally scalable technology businesses across several sectors, including AI, SaaS, marketplaces, cleantech, edtech, medtech, and cybersecurity.

Maciej Ćwikiewicz, President of the Board at PFR Ventures, highlighted that since the launch of their first investment program in 2018, the aim has been to indirectly facilitate capital access for innovative Polish enterprises.The selection of the new funds was a meticulous process involving the evaluation of nearly 100 proposals. The primary criteria for selection were the experience and reputation of the management teams behind these funds.

This rigorous vetting process was designed to ensure that only the most capable and esteemed teams were chosen. By prioritizing the experience and track record of these teams, PFR Ventures aims to maintain high standards of investment quality and trustworthiness. This focus on the reputational strength of the fund managers ensures that the selected funds are well-positioned to manage capital effectively and support innovative ventures with a strong potential for success.

Piotr Matczuk, President of the Management Board at the Polish Development Fund, emphasized PFR Ventures' role as the largest fund of funds manager in the CEE region. The organization is dedicated to supporting Polish companies at various stages of development, from innovative seed projects to more established international firms.

By leveraging both European Union and private capital, PFR Ventures seeks to deepen its engagement and further advance the venture capital and private equity ecosystem in Poland. The organization is committed to fostering growth and innovation within the Polish market, aiming to enhance the overall investment landscape. Additionally, further announcements regarding new funds slated to receive support from PFR Ventures are expected later in the year, indicating ongoing efforts to bolster the country’s investment infrastructure.