Warsaw-based VC firm Inovo closes its third fund at €105 million to support start-ups in CEE

A boost for the CEE region comes in the form of Poland’s early-stage VC fund Inovo Fund III closing at €105 million, a touch higher than the proposed €100 million. In the breakdown, €55 million comes from private LPs, with the remainder from global, regional, and local institutions, including World Bank’s IFC, EIF, and Poland’s PFR Ventures.

The fund by Inovo VC, will focus on supporting early-stage start-ups in the CEE region with global growth potential. With an aim of investing in 20-30 companies with a first ticket spanning from €0.5 million to €4 million in Seed rounds. Pre-Seed and Series A contributions are not off the cards though - there will be up to €10 million available for follow-on investment. 

Of its portfolio companies Inovo counts Booksy, Infermedica, Packhelp, Preply,  Spacelift and Tidio as its most successful to date, all having surpassed a valuation of over €100 million.

"Over the last nine years, we’ve seen the remarkable growth of the CEE start-up ecosystem. The combined enterprise value of start-ups in the region has quadrupled in the last five years, totalling €190 billion as of 2022, Inovo LPs and portfolio companies contributed to that number significantly. And while we are in a period of a global funding slowdown, we still see companies in the region that can grow to $100 million in revenue in just a few years. We remain confident that CEE will raise at least ten new unicorns in the upcoming five years, and we want Inovo to be a key contributor to this achievement, actively helping the most ambitious founders," says Michał Rokosz, Partner at Inovo VC.

"IFC’s strategy for Central and Eastern Europe prioritises the creation of markets and boosting the competitiveness of the private sector. This investment will help enterprises access much-needed capital, create quality jobs, and drive economic development across the region. Supporting entrepreneurship and increasing access to new technology is key to promoting innovation and unlocking new pathways for sustainable economic growth in Central and Eastern Europe," says Ary Naïm, IFC’s Regional Manager for Central and Southeast Europe.