The Polish venture capital market is accelerating! The market is maturing, the number of transactions is increasing and it is happening faster than ever, experts say.
Recently, PFR Ventures, together with Inovo Venture Partners, released the Q2 report summarizing transactions in the Polish venture capital (VC) market.
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Here are the 9 key points of the report!
# 1 Raised of 260 M € in H1 2021
According to the report, the value of the Polish venture capital market in the second quarter of 2021 reached 207 million euros. Concretely, 109 funds were invested in 108 companies, raising a total of 207 M €.
In the first half of 2021, Polish startups raised € 260 million, or 55% of the total value of investments over the whole of 2020.
# 2 T2 record
The biggest deal of Q2 2021 was the Uncapped mega-ride. The company raised € 66 million. Even without taking this into account, the second quarter of 2021 broke all records, the report says.
Other Polish companies raised € 141m. The previous record quarter was the fourth quarter of 2020, with a result of 94 million euros excluding outliers.
# 3 The biggest cash injection from international funds
The second quarter of 2021 is a quarter with a significant injection of liquidity from international funds. Compared to the first quarter of 2021, the average has more than doubled to reach € 1.2 million.
Aleksander Mokrzycki, Vice President of PFR Ventures, said: “In the first half of 2021, the VC market has already reached the level of the whole of 2019. It looks like the third quarter will be even stronger, which will allow us to continue another record and to exceed € 477 million in transaction value. We already have first signals on the next laps of significant value. “
# 4 Source of capital
34 percent of the funding was public-private capital and the share of international funds in the total value of transactions was 61 percent. At the same time, 87 of the 117 transactions were based on public-private capital. Polish venture capital funds participated in 96 fundraising rounds.
# 5 Foreign funds
Aware of the potential of the Polish market, many foreign funds have confirmed that they are increasingly interested in the Polish market in the second quarter of 2021. In particular, more than 40% of the capital provided during this quarter came exclusively from actors international.
# 6 Co-investment
In the last quarter, Polish venture capital funds, including Inovo, made 20 co-investments in Polish companies with international investors, and their value exceeded 60% of market value.
# 7 Increase in the number of transactions
The number of transactions compared to the previous quarter increased by more than 25% and compared to the second quarter of 2020 by more than 103%.
“Despite the increase in the number of transactions carried out by BRIdgeAlfa funds, from 33 in Q1 to 47 in Q2 2021, the number of which usually determined the median value at around € 0.2m, we recorded an increase to 0.3 M € ”, the report reads.
# 8 Value of the transaction
According to the report, the value of the transaction has also increased with every stage of business development.
Although the vast majority (around 88%) are still in pre-seed and seed cycles, even at this early stage companies are increasingly raising capital. The most important rounds more than doubled the average value of transactions (from € 0.6 million to € 1.2 million).
# 9 Poland on the EEC map
Poland is one of the largest markets in the EEC region. € 207 million invested in Q2 in Polish companies represents approx. 20 percent of the value of the EEC startup ecosystem.
Tomasz Swieboda, Partner at Inovo Venture Partners, says: “Polish technology companies are raising more capital and it is happening faster than ever before. Subsequent rounds are now closed in less than a year compared to the previous ones, and record holders do it in 4 to 8 months. A good example is Uncapped. In May, the company raised € 66m, just 8 months after the previous round. “# 6