Polish startups need more than just financing - EY (interview)
For startups to develop properly, not only financing is needed; Poland lacks support from the private sector and corporate venture capital funds, partner at EY Michal Plotnicki told PAP Biznes. He added that the market is waiting for the European FENG funds to be launched and interest rates to drop.
"The key to the development of startups emerging in Poland is financing. This has been lacking in our country for the last few years because EU funds from the previous budgeting for venture capital funds have run out," Michal Plotnicki, partner at EY responsible for M&A projects, told PAP Biznes.
He added that agreements are only now being signed within the new EU budget between PFR Ventures and venture capital funds under the FENG program, and the funds will only be issued.
According to Plotnicki, in this edition of EU budget there are more funds for startups, but financing alone is not enough.
"I think that for startups to develop properly, not only financing is needed, but a whole broad environment, which includes support for the private sector, the willingness of larger entrepreneurs to cooperate with such startups, various types of stimulus programs, where startups have the opportunity to benefit from the advice and knowledge of people who have experience in business development," the partner at EY assessed.
In his view, Poland lacks corporate venture capital funds, which are created in Western Europe by large corporate enterprises to support startups that create solutions that support a specific sector.
Plotnicki added that high interest rates don’t provide a supportive environment for startups. However, according to the partner at EY, the biggest challenge facing the Polish startup market, is the current phase of the economic cycle across Europe.
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