Future Tech Poland injects EUR 85 mln financing into three Polish capital funds

Future Tech Poland (FTP) is a joint initiative of Poland's state development bank BGK and the European Investment Fund, part of the European Investment Bank Group, who acts as the fund's manager. The allocation of Future Tech Poland’s funds, i.e. PLN 1.5 billion (EUR 349.65 mln), is to take place by the end of 2027.

"The figure of the day is PLN 365 million. That is how much we are investing – from BGK's capital and from EU funds - the European Investment Fund. This is the money that is launching the initiative known as Future Tech Poland," BGK's CEO Miroslaw Czekaj announced at the press conference.

"Future Tech Poland has invested in three Polish capital funds: the growth fund Cogito Fund II and the venture capital funds - Expeditions Fund II and Balnord Fund I. These vehicles support the development of technology companies that are developing modern technologies in areas such as defence, dual-use, space-tech, enterprise software, fintech and medtech," BGK said in a press release on Tuesday.

In total, FTP will allocate EUR 85 million to the development of the three funds. Ultimately, the Fund aims to invest in over a dozen portfolio funds.

EUR 31 million is to be earmarked for the development of the Expeditions Fund II, a Polish VC fund that invests in projects aimed at strengthening European security. The companies it supports are based on the application of AI and other advanced technologies in the defence, cybersecurity and space technology sectors, BGK said.

FTP will also inject EUR 30 million financing in Cogito Fund II, a Polish growth capital fund. CFII's strategy involves investing in technology companies at the scale-up stage.

The fund provides financing mainly in Series B and later rounds to increase the scale of the companies' operations and their international expansion, including into the US market, Polish development bank noted.

Over EUR 24 million is to be invested in the third fund, Balnord Fund I, a Polish VC fund that supports companies at an early stage of development. It invests in frontier tech and dual-use technologies, including spacetech and medtech sectors, as well as those supporting industrial resilience, BGK pointed out.

During Tuesday's press conference, Patric Gresko, head of the Innovation and Technology Investments Departments at the EIF, said that the next FTP investment should take place before the summer.

"Another one will probably follow before the end of the year. This will bring the FTP portfolio up to five funds, meaning that in roughly one year we will have built up almost half of the target portfolio," Gresko said.

Future Tech Poland is one of the elements of the Innovate Poland initiative aimed at supporting the Polish technological innovation ecosystem. The fund is set to focus on mobilising venture capital by investing in funds which, in turn, invest capital in growing companies.

The FTP intends to invest in venture capital and venture debt funds (on a smaller scale) covering the seed, start-up, later-stage venture and growth capital phases (as defined by Invest Europe), operating in the CEE region.

The budget for the first phase totals PLN 4 billion, which comes from development institutions: the Polish Development Fund (PFR), state development bank BGK, the European Investment Fund (EIF) and listed insurance group PZU.

These funds are intended for projects at various stages of development: from the initial idea through to expansion. Alongside Future Tech Poland (FTP), the second fund under the Innovate Poland programme is Innovate PL – Fund of Funds (FoF) managed by PFR Ventures.

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