PFR Ventures is announcing the first calls for new programmes fuelled by funds from the European Union, the fund said. The new funds from the European Funds for the New Economy (FENG) programme will enable the fund to inject around 40 venture capital funds with a public contribution of PLN 2 billion and an additional PLN 1.1 billion provided by private investors. Fund managers will be able to apply for the new editions of the PFR Starter, Biznest, Open Innovation, KOFFI and CVC programmes from 12 February 2024. 5 series of calls are planned by the end of the year.
The new capital will stimulate different types of investments in start-ups, allowing to meet the diverse needs of innovative companies: from financing prototypes to capital for international expansion.
“The VC market is an engine for funding innovation. PFR has in recent years become the largest institutional investor in PE/VC funds in this part of Europe. We have said from the beginning that it is crucial that funds are available at every stage of a company’s development and on a long-term basis. That’s why it’s important that PFR Ventures is launching another major EU-funded programme under the FENG. We intend to invest around PLN 2 billion in 40 management teams. These will again include so-called first-time teams, but the capital will also go to existing management teams launching their next funds. This is a new measure of the maturity of our market. It will also be important for the start-ups themselves, who will be able to work with more experienced investors. I hope that a Polish unicorn will grow out of our venture capital funds in the coming years,” said Polish Development Fund president Paweł Borys.
Under FENG, PFR Ventures will launch new editions of the PFR Starter, Biznest, Open Innovation, KOFFI and CVC programmes. PFR Starter and PFR Biznest will allow investments in early-stage small and medium-sized companies through VC funds. PFR Biznest additionally activates private investors (business angels) and knowledge transfer from people with extensive market experience. PFR Open Innovation aims to make investments through VC funds in small and medium-sized companies with an R&D&I component at both early and later stages of development. The aim of PFR KOFFI will be to invest through financial intermediaries in small and medium-sized enterprises at the growth, development and expansion stage, those in the process of expanding their activities or implementing new projects, as well as those moving into new markets or into new solutions. PFR CVC, on the other hand, will allow the provision of capital to innovative companies through corporate venture capital (CVC) funds together with the resources of corporate investors, it was announced.
The first calls for all 5 programmes will launch on 12 February 2024, with a second round of calls planned for the last week of March. The expected date for signing agreements with management teams is May-June 2024. PFR Ventures plans to conduct approximately three more rounds of calls in Q2 and Q3 2024. Funds for the teams will be available until the end of 2025.
“The Polish venture capital market is in a completely different place than it was even five years ago. There has been a massive shift in the awareness of market participants, their activity has increased significantly and their appetite for funding innovation has been stimulated. EU funding has played a major role in this, having helped to build the foundations of our ecosystem. The number of new investment teams and deals completed by the end of 2023 are testament to the success of the programmes to date. We will continue with the new editions of the PFR Ventures programmes on the same principles as before, with minor adjustments. By the end of the year, we are planning 5 series of calls for programmes, but we anticipate that they will not use all the funds allocated to them,” said PFR Ventures CEO Maciej Ćwikiewicz.
Source: PFR Ventures and ISBnews
