"The entire ecosystem of
investment funds is failing because of the lack of private capital,"
experts say. However, they predict an improvement in the economy in 2025.
It was a weak year on the high-risk
investment market - access to capital is a key challenge for start-ups not only
in Poland, but also throughout Europe. PitchBook data (which collects data on
companies from the venture capital market) leaves no doubt: 2024 was another
year in which there were fewer venture capital transactions on the Old
Continent - their number decreased by 22 percent compared to 2023. In terms of
value, by about 7 percent.
A virtual math teacher, real-time
machine learning technology or autonomous insect protein factories - these are
examples of domestic innovations that will attract attention in 2025.
Interestingly, the negative trend in
start-up financing in Europe has not been mitigated even by the AI boom.
PitchBook experts emphasize that artificial intelligence is currently the
driving force behind VC investments in this part of the world. world, and the
value of transactions in this segment increased by almost a quarter
year-on-year (almost every fifth euro invested by VC in innovative companies
went to companies developing such technology).
VC funds will reach into their
pockets, more money for start-ups in Poland
What good is it, if there is a clear
lack of money for young innovative companies in Poland. - The entire ecosystem
of investment funds is unfortunately lame, because there is a lack of
large-scale private capital that could strengthen the construction of various
financial instruments - diagnoses Jarosław Dąbrowski, member of the board of
BGK.
Krzysztof Bachta, managing partner
of 4growth VC, also sees a problem. - When it comes to the VC market, Poland is
playing definitely below its capabilities - he admits. And he emphasizes that
changes need time, as well as more successes in the form of successful exits
from investments and a return of capital to investors.
- Until then, the stable activity of
PFR Ventures as a public investor and the opening of long-term capital, such as
pension funds and insurers, to investments in Polish VC and private equity
funds will be important - he comments.
Flying scooters and passenger drones
will appear in Poland. We can be a powerhouse
Poland is preparing for flying
scooters - new regulations will allow such futuristic vehicles to be used
without the need for a pilot license. Interesting companies and projects are
being created on the Vistula.
In his opinion, the activity of
public investors, including the largest one - PFR Ventures, is an important
factor for the Polish VC market. - In 2024, we were dealing with a transition
period between EU perspectives. New funds supported by PFR Ventures will enter
an active investment period at the beginning of the new year. Therefore, we
should expect significant market growth in the first half of 2025, when further
funds using funds from the new EU perspective will be launched - explains
Krzysztof Bachta.
PFR Ventures recently signed five
agreements with teams managing VC funds under the "European Funds for
Modern Economy" (FENG) program. They will have a total capital of over PLN
400 million (of which the PFR contribution is approx. PLN 270 million).
As
Mikołaj Raczyński, vice-president of PFR, argues, the new funds activate
private investors, business angels and companies interested in new
technologies. "They contribute not only capital, but also additional
values that help develop start-ups," notes Raczyński.
What will the new year bring?
PFR expects that the market for
financing the so-called The seed fund will feel the presence of new funds as
early as Q1 2025. The flow of money within FENG is to support a total of around
40 venture capital funds (the public contribution in them will reach PLN 2.1
billion, and PLN 1.1 billion will be added by private investors. In 2025,
start-ups can therefore look forward with hope.
Optimism is visible in start-ups
around the world
Experts from the company Crunchbase,
which collects data on companies, predict a revival in the mergers and
acquisitions market in 2025. Not only VC activity, but also private equity (PE) activity is to
grow. - There is growing optimism among large institutional investors regarding
the allocation of funds in private equity. This is a good prognosis for
transaction activity in 2025 - tells us Tomasz Stamirowski, Managing Partner at
Avallon MBO.
A lot was already happening on the
PE market in 2024. One of the key transactions in Poland was the acquisition of
Comarch by CVC Capital Partners (for approx. PLN 1.7 billion). It is also worth
mentioning the acquisition of 65 percent of shares in Profitroom by MCI (for
PLN 190 million), the investment of the Enterprise Investors fund (worth over
PLN 100 million) in Sescom and Innova Capital in Tutore Poland. "In each
transaction, the technological factor was the leading premise," emphasizes
Przemysław Woźniak, member of the board of The Heart. He adds that at the same
time, PE funds were exiting investments.
And so, among others, Abris Capital sold
Scanmed to American Heart of Poland, Enterprise Investors sold Nu-Med to
Affidea, and shares in Shoper were taken over from V4C by cyber_Folks.
According to Woźniak, M&A transactions carried out by PE funds clearly show
that even in times of geopolitical and macroeconomic uncertainty, acquisitions
are an effective way to effectively allocate capital, consolidate the market
and generate above-average growth.
- It should be assumed that, among
other things, due to the reduced transaction activity of European enterprises,
the activity of PE funds in 2025 may be maintained - predicts a representative
of The Heart."
Polish: "Wojsko polskie jest zmotoryzowane, każdy ma rower." "Polish army is motorized, every body is with a bike (flying bike)."
For
my Lithuania, an interesting project is growing flies and their
protein. We already have a unicorn in Lithuania dealing with old dirty
rags. Growing flies would be one more big step into this dirty
direction. This would be an area
protected from competition. Big boost for the fly protein enterprise
would be ditches full of dead people promised for Lithuania by the
Lithuanian commander of the army.
Great ideas. Where is the money?
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