NCBR new capital funds - PLN 2 bn for Polish innovations
The National Centre for Research and Development (NCBR) launches two Funds of Funds (FOF), totalling PLN 2 bn for investments. NCBR CVC and NCBR VC will shape the technology investment market in the coming years.
- The start of NCBR CVC and NCBR VC activities is of breakthrough importance for the development of the Polish venture capital market. We lay the cornerstone for the R&D projects commercialisation system using financial instruments. This is an important addition to the NCBR-created ecosystem of supporting Polish technology projects at all development stages, says Deputy Minister of Science and Higher Education Piotr Dardziński. - Our scientists and entrepreneurs who want to market breakthrough products and technologies deserve to work with the best. These two funds guarantee such cooperation, Dardziński adds.
The agreement signed on 7 April in Warsaw between the NCBR and VC3.0 sp. z o. o. as well as FinCrea TFI S.A. launched the NCBR VC FOF whose total investment funds amount to PLN 1.1 bn. The NCBR CVC FOF was launched at the same time, thanks to signing appendices to the contract signed between the NCBR and PFR Ventures as well as BGK TFI at the end of 2016. The total investment funds of NCBR CVC will amount to PLN 880 million.
- By launching NCBR CVC and NCBR VC we do not just think about the present and filling in the capital gap in the Polish venture capital market. The money we invest will continue to work in the market for a long time, providing funding for breakthrough technology projects that can showcase Poland globally, says NCBR Director Prof. Maciej Chorowski. - With these instruments, SMEs will multiply their access to R&D funding for venture capital projects, NCBR Director underscores.
NCBR CVC - government agency joins forces with corporations
In 2016, CVC activity worldwide reached about $ 25 bn, a fivefold increase compared to 2009. Until now there had been no institution supporting the process of building CVC on the Polish market. The NCBR initiated the first such professional institutional investor - NCBR CVC. Launched under the appendices signed on 7 April, the NCBR FOF will have PLN 880 million at its disposal, half of which is the NCBR contribution. The remaining 50% will be contributed by corporate investors. PFR Ventures-BGK TFI consortium will manage the FOF, with the management team comprised of top VC professionals.
Funding will be provided to CVC funds whose private investors will be large companies managed by independent entities. NCBR CVC intends to create between 6 and 9 CVC funds capitalised at between PLN 60 million and PLN 100 million in different market sectors. NCBR and corporate investors will contribute 1:1, while the maximum contribution per project is about PLN 35 million. Importantly, apart from VC-type financial support, portfolio companies will have the opportunity to verify their ideas in a given corporation as well as to speed up implementation. When the role of a private investor in a CVC fund is performed by an international corporation, Polish start-ups will have the possibility of a faster expansion beyond Poland.
NCBR VC - new quality of VC funds
Launched under the agreement signed on 7 April in Warsaw, the NCBR VC FOF will have PLN 1,1 bn in VC funds (at least half of which is private investors' funds provided at VC fund level). It is the first Polish professional institutional investor to systematically fund VC funds in fully marketable terms which will be managed by VC3.0 sp. z o. o. and FinCrea TFI S.A. – a consortium of private companies experienced in the venture capital market. Its goal is to build a portfolio of the best VC funds and focus on return of investment.
The NCBR VC will build several VC funds with a total capitalisation of approximately PLN 1,1 bn and a minimum of 50% share of funds from private investors. Over the next few years, they will invest in small to medium-sized technology companies with high growth potential and then, intendedly, will make a profitable exit. Innovative companies will therefore receive support in their key development phase as they scale up their businesses.