In brief

• Erste, PKO BP and Pekao will together pay PLN 500 million into the Innovate PL fund of funds.
• The Innovate Poland programme budget has grown to PLN 4.5 billion, and the programme has its first foreign investor.
• The capital flows indirectly, through venture capital and private equity funds, to companies such as Oshee, Inglot and Nomagic.

Three banks in the fund of funds

The Austrian Erste Group, as the first foreign investor, together with the two largest domestic banks, PKO BP and Pekao, have decided to jointly fund the Innovate PL Fund of Funds. The fund is managed by PFR Ventures, and its aim is to strengthen the private equity and venture capital market in Poland. Together, the banks will allocate PLN 500 million to this goal (Erste, PKO BP i Pekao wyłożą łącznie pół miliarda złotych. Zobacz na co te pieniądze – Puls Biznesu) (Trzy banki wesprą program Innovate Poland. Kapitał napędzi innowacyjne firmy, część to znane marki – Bankier.pl). After this injection, the budget of the entire programme stands at PLN 4.5 billion (Nowi inwestorzy w Innovate Poland. Dodatkowe pół miliarda dla innowacyjnych firm – Ministerstwo Rozwoju i Technologii).

The share of foreign capital is particularly significant, because the programme has gained three new investors, and for the first time in its history an investor from outside the country has appeared (Program Andrzeja Domańskiego ma nowych inwestorów. Kapitał popłynie do polskich firm – Business Insider Polska). Minister of Finance and Economy Andrzej Domański says that the interest of further institutions confirms the effectiveness of this model. In his view, the programme combines public and private capital into a new investment architecture.

What the money will be used for

The fund does not finance companies directly. The capital first goes to venture capital and private equity funds, which in turn invest in businesses at the early and middle stages of development. According to the ministry, the deposited funds are meant to mobilise private capital and supply innovative companies at various stages of growth.

Which companies are already benefiting

Capital from the programme is beginning to flow to companies such as Oshee, Inglot and Nomagic. Some of them are brands well known to consumers, which shows that the programme covers not only technology companies but also businesses from other sectors.

Who can count on support

For entrepreneurs, this means access to capital without taking out a loan, in exchange for the investor's stake in the company. The programme is aimed primarily at companies with high growth potential, not at the ongoing operations of small businesses. The conditions for entry into individual funds are set by their managers.