Poland launches Innovate PL programme with PLN 4 bln for development of domestic companies

"A modern economy needs long-term capital to take risks and support companies in their growth and expansion phase. That is why we are launching Innovate Poland, a programme inspired by the French 'Tibi Plan', which gave a powerful boost to the development and financing of innovation in France," Domanski told the conference.

"The goal of Innovate Poland is to break down the financing barrier that has limited the opportunities for Polish entrepreneurs for years and forced them to seek capital outside the country. The programme is based on mobilising institutional and private funds that go to private equity funds investing in innovative companies in the expansion phase," he added.

As Poland's finance minister pointed out, the planned PLN 4 billion (EUR 945.6 mln) will provide the impetus to launch the first projects under the programme, and thanks to the leverage effect and the involvement of further investors, the total value of the investment will reach PLN 8-10 billion (EUR 1.9-2.4 bln).

As listed insurer PZU pointed out in the press release, the budget for the first phase of Innovate Poland programme is based on funds from Poland's development institutions: the Polish Development Fund PFR, Poland's state development bank BGK, the European Investment Fund (part of the European Investment Bank Group) and PZU as the first commercial partner of the project.

The plan is to invest PLN 4 billion (EUR 945.6 mln) through private equity and venture capital funds in approximately 250 companies.

"The programme's formula has been designed to allow new institutions and investors to join in subsequent phases, which will enable the scale of financing to be systematically increased and the programme's impact on the economy to be strengthened," PZU explained.

"According to the assumptions, at least PLN 4 billion will go to companies at various stages of development, and ultimately even several billion zlotys – both thanks to the multiplier effect mobilising additional private capital and the joining of new programme participants, which will systematically increase the total scale of financing," it added.

The programme is operated by PFR Ventures, the venture capital unit of the Polish Development Fund PFR, and the European Investment Fund, which will be responsible for the investment process in private equity and venture capital funds.

pat/ ao/