Warsaw-based PFR Ventures invests €47M in four new Polish early-stage VC funds: Know more

Warsaw-based PFR Ventures, Poland’s Development Financial Institution, that provides capital to venture capital and private equity funds, announced on Monday that it has invested in four new early-stage VC funds.

The funds include — 24Ventures, Digital Ocean Ventures Starter, Hard2beat, and Tar Heel Capital Pathfinder.

The total capitalisation of the new funds exceeds PLN 250M (approximately €58.4M), and PFR Ventures’ contribution amounts to approximately PLN 200M (€46.7M).

The new VC funds investment is part of the European Funds for a Modern Economy (FENG) program, the largest national initiative supporting innovation in the European Union.

“Since the launch of our first investments programme in 2018, our goal has been to facilitate access to capital for Poland’s innovative enterprises indirectly. This is achieved by partnering with the best local and global management teams, including emerging managers. The first four funds to receive new EU capital are led by people with experience in venture capital investments and developing tech startups. They were chosen from nearly 100 offers from management teams.” says Maciej Ćwikiewicz, President of the Board at PFR Ventures.

“We always set a high bar, albeit adjusted for new teams, with a strong focus on reputational aspects. We also expect to announce more funds that will receive our funding later this year,” adds Ćwikiewicz.

Who invests in what?

24Ventures will invest in young companies developing products that address long-term trends such as the digital transformation of businesses, climate, and social changes. The fund plans to invest in 18 globally scalable projects over four years.

Digital Ocean Ventures Starter will finance companies in the FinTech sector and AI-supported digital transformation. The fund was founded by a team previously associated with the banking, VC, and technology sectors, with experience in venture building.

Hard2Beat specialises in early-stage investments in DeepTech companies developing software-based solutions. The VC’s mission is to support ambitious entrepreneurs committed to achieving long-term goals.

Tar Heel Capital Pathfinder invests in globally scalable technology businesses in areas such as AI, SaaS, Marketplace, CleanTech, EdTech, MedTech, and Cybersecurity. In addition to funding, it offers startups technological, business, and marketing expertise, and access to a network of potential business partners to accelerate their growth and outpace competitors. Its portfolio includes companies like Selmo, Wellbee, Teleradius, and Multilango, and it has exited the company Primetric, which was acquired by the American industry leader BigTime.

The four funds will invest in companies until the end of 2029, with an additional four-year divestment period. The program provides capital for venture capital funds with an investment ticket of up to PLN 5M (approximately €1.16M).

PFR Ventures: Poland’s Development Financial Institution

PFR Ventures is a public manager of funds of funds, a part of the Polish Development Fund (PFR).

Together with private investors, business angels, and corporations, it invests in venture capital and private equity vehicles. PFR Ventures’ objective is to use this capital to support Polish innovative companies at various stages of development.

As the biggest institutional fund in the CEE, PFR Ventures currently holds a portfolio of more than 80 funds that have made over 900 investments. The investment programs are fueled by the Polish Development Fund’s budget and capital from European Union funds, including European Funds for a Modern Economy.

The new funds from the European Funds for a Modern Economy program will support approximately 40 venture capital funds, with public contributions totaling PLN 2B and an additional PLN 1.1B from private investors.

Funds from PFR Starter and PFR Biznest are available for early-stage companies. PFR Open Innovation, PFR KOFFI, and PFR CVC programs support companies in the growth phase and international expansion, focusing on innovative solutions and new market entry.