This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
The value of venture capital (VC) transactions involving Polish startups reached PLN 3.37bn (around EUR 780m) last year, according to Transactions on the Polish VC Market 2025, a report by PFR Ventures and Inovo.vc. This figure, however, includes two so-called mega-rounds – investments that clearly stand out from the market average: ElevenLabs’ round of PLN 720m (about EUR 165m), the largest of 2025, and Iceye’s PLN 636m (roughly EUR 150m).
Explainer
PFR Ventures
PFR Ventures – a fund management company that, together with private investors and business partners, supports Polish startups and innovative enterprises through investments in venture capital and private equity funds at various development stages.
The mission of the Polish Development Fund (PFR) is to support Poland's sustainable economic development. We work for entrepreneurs, local governments, and other entities, offering comprehensive financial and advisory solutions. Our activities are based on several key areas that combine into a single, coherent strategy to support entrepreneurship, investment, and innovation
The report’s authors stress that even after excluding these deals, the market still expanded by 28% year on year. The key driver was the activation of new VC players financed by PFR Ventures under the European Funds for a Modern Economy (FENG) program. Earlier delays in launching the scheme had created a capital gap, particularly visible in 2023–24.
Explainer
FENG (European Funds for Modern Economy)
FENG (European Funds for Modern Economy) is Poland's largest EU-funded national program for 2021-2027, designed to boost innovation, research, development (R&D), and competitiveness for Polish businesses (especially SMEs) by supporting advanced tech, Industry 4.0, green transitions, and strategic economic projects.
In total, the development of 166 companies was financed in 2025, with the participation of 147 venture-capital funds.
Interactive chart Average VC deal size rises
In recent years capital has been in short supply, particularly at the seed stage. The latest report, however, shows that the situation began to improve last year.
“In 2025, 134 seed transactions were completed, an increase of around 20% year on year. Nearly three-quarters of these rounds involved funds from the PFR Ventures portfolio,” says Karolina Mitraszewska, chief executive of PFR Ventures.
Statistically, startups have also begun to raise larger sums. The average deal size in 2025 reached PLN 11.1m (about EUR 2.6m), while the median stood at PLN 4.2m (around EUR 1.0m). This is the highest level since 2019.
It is worth bearing in mind that in previous years investment vehicles run by the National Centre for Research and Development (NCBR) were still active, offering seed-stage companies funding of around PLN 1m (roughly EUR 230,000).
Explainer
NCBR
NCBR is a governmental agency established to implement tasks in the area of science and innovation policy. It is supporting innovative ideas of Polish business enterprises and research institutions, and serves as the main funder of research, development, and innovation in Poland.
Its core mission is bridging the gap between academia and business. The agency's chief aim is to support the creation of innovative solutions and technologies that increase the competitiveness and innovation of the Polish economy, and to strengthen collaboration between business and academia — leading to greater entrepreneur engagement in research funding and more effective commercialization of research.
Interactive chart According to Maciej Małysz, a partner at Inovo.vc, rebuilding the pipeline of projects at the pre-seed and seed stages is critical over the long term. It is this base that determines the future supply of companies able to raise Series A, B and later rounds.
“We are already seeing a modest rebound – from 113 projects at this stage in 2024 to 134 in 2025 – but the market’s potential is 200–300 such investments a year. If we want to sustain growth, we need a steady inflow of ambitious teams,” Mr. Małysz stresses.
Where did startup capital come from?
PFR Ventures remains the main source of capital for Polish startups, channeling funds into public–private investment vehicles. In 2025 it accounted for 47% of the total capital raised by companies. A further 38% was provided by foreign private funds and individual investors, largely through participation in the largest rounds raised by more mature Polish startups. The remainder came from domestic private funds, business angels and Bank Gospodarstwa Krajowego (BGK), through its Vinci platform.
Interactive chart Measured by the number of deals, the most active fund was Smok VC, which completed more than ten investments. Between five and ten transactions were carried out by bValue, ffVC, Hard2beat, Inovo.vc, Kogito Ventures, Movens Capital and Vinci.
According to Karolina Mitraszewska, the coming years are likely to bring growth in both the number and value of investments in more mature companies. A key catalyst is expected to be the launch of the long-announced Innovate Poland program, with funding of PLN 4bn (around EUR 920m).
Luiza Nowacka, an investment manager at Vinci, in turn stresses that the further development of Poland’s VC market will depend on a deepening of growth capital. This will require an increase in both the number and size of follow-on rounds, greater activity by private investors and improved exit conditions.
Key Takeaways
- PFR Ventures remains the central pillar of funding for Polish startups, but the market’s future will hinge on private capital and growth-stage investment. Public–private funds accounted for nearly half of total market value, while the largest rounds were co-financed by foreign investors. Further expansion of the VC market will depend on larger follow-on rounds, improved exit conditions and the rollout of new support instruments – most notably the Innovate Poland program.
- Poland’s venture-capital market entered a recovery path in 2025. Total investment reached PLN 3.37bn (around EUR 780m), and even after excluding mega-rounds the market grew by 28% year on year. The rebound was driven primarily by the launch of new funds backed by PFR Ventures, which helped close an earlier capital gap. This also means, however, that the market remains heavily dependent on public funding.
- A notable shift was increased activity at the seed stage, although the segment’s growth potential has yet to be fully realized. The number of pre-seed and seed transactions rose by around 20%, and startups began raising larger rounds than in previous years. Experts stress, however, that sustainable development will require rebuilding a broad pipeline of projects to feed subsequent stages of financing.