PFR Ventures invests €47M in 4 new Polish early-stage VC funds

PFR Ventures, Poland’s Development Financial Institution that provides capital to venture capital and private equity funds, has invested in four new early-stage VC funds: 24Ventures, Digital Ocean Ventures Starter, Hard2beat, and Tar Heel Capital Pathfinder

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

The investment is being carried out under the European Funds for a Modern Economy (FENG) program, the largest national program supporting innovations in the European Union.

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 own budget and capital from European Union funds, including European Funds for a Modern Economy.

Investment until 2029

All four funds will invest in companies until the end of 2029, and the divestment period will last an additional four years. The program provides capital for venture capital funds with an investment ticket of up to PLN 5 million (approx. EUR 1.16 million).

In terms of verticals:

• 24Ventures 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. 
• Hard2beat is focusing on early-stage investments in DeepTech companies developing software-based solutions. 
• Tar Heel Capital Pathfinder invests in globally scalable technology businesses in areas such as AI, SaaS, marketplace, cleantech, edtech, medtech, and cybersecurity.

According to Maciej Ćwikiewicz, President of the Board at PFR Ventures:

“Since the launch of our first investments programme in 2018, our goal has been to facilitate access to capital for Poland's innovative enterprises in an indirect manner. 

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. 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.”

“PFR Ventures is the largest fund of funds manager in Central and Eastern Europe, providing capital to over 80 VC and PE funds. They support Polish companies at various stages of development, from innovative seed projects to traditional companies already operating internationally. 

We use both EU funds and our own capital for financing. We plan to increase our involvement in this area and work on further developing the VC and PE market ecosystem in Poland,” says Piotr Matczuk, President of the Management Board at the Polish Development Fund.