This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
Until recently, business angels in Poland were associated primarily with a narrow group of ultra-wealthy investors. Today, however, they are being joined by founders, executives, and technology entrepreneurs. They contribute not only capital, but also experience and networks. The market is maturing, and investing in startups is no longer a niche activity.
Can you invest in an early-stage startup with PLN 50,000 (approx. EUR 11,500)? Under favorable conditions – yes. In Poland, however, business angels most often invest between PLN 100,000 and 150,000 (approx. EUR 23,000–34,500). The market also sees transactions reaching millions of zlotys. At the same time, this segment is clearly evolving. Investing “in the business angel model” is no longer the exclusive domain of the ultra-wealthy. It is becoming increasingly accessible to a broader group of investors.
Market in a growth phase – early signs of professionalization
The example of the business angel network Smok Angels shows that the market is gradually developing. Within roughly a year, it managed to bring together 220 business angels from Poland and Central and Eastern Europe. Collectively, they have invested in around 20 startups. According to information provided by Borys Musielak, founder of Smok Angels, the network is largely composed of individuals with business or managerial experience, often linked to the technology sector. The average ticket size ranges from EUR 10,000 to EUR 25,000.
At the same time, a significant share of business angels in Poland still consists of representatives of older generations who built their wealth over years in more traditional sectors of the economy. As a rule, they prefer lower-risk investments.
Preference for safer bets
According to Musielak’s observations, this is also reflected in the structure of investor interest within the network. Very early-stage technology projects – even if developed by experienced entrepreneurs – attract less attention than companies already generating revenue. Yet their growth potential is often significantly higher, albeit naturally accompanied by greater risk.
“To offset this, it is necessary to build a broad investment portfolio covering a dozen or even several dozen projects. Not everyone can afford this financially, and not everyone has the knowledge to do it effectively,” Musielak emphasizes.
A new wave of tech investors
For a long time, Poland lacked a well-developed group of business angels emerging from the technology entrepreneurship community. Until recently, only a handful of such individuals could be identified.
“Today, we are observing a shift in this trend. A phenomenon well known from Silicon Valley or Estonia is gradually beginning to appear on the banks of the Vistula as well. Increasingly, entrepreneurs who have achieved success in the tech sector are investing capital in early-stage companies. Examples include Mati Staniszewski, co-founder of ElevenLabs, and Marcin Żukowski, associated with Snowflake. Such investors represent a particularly valuable source of funding. Beyond capital, they bring a recognizable name that facilitates raising subsequent funding rounds. They also provide hands-on, substantive support in technology development and business scaling,” emphasizes Borys Musielak.
Expert's perspective
A fragmented and diverse profile of business angels in Poland
Overall, the investment profile of Polish business angels still largely resembles the approach typical of venture capital funds – often opportunistic and generalist in nature. The exception are investors with specialized expertise, who focus on specific sectors and projects aligned with their experience.
At the same time, a gradual shift in this model can be observed. Interest is growing in fund investments and in more technologically advanced companies, including deep tech ventures.
At this stage, however, it is difficult to clearly assess the scale of this trend, as business angels primarily focus on very early-stage projects. These require time to mature before becoming visible and attractive to the broader venture capital market.
Investing as a side activity, not a primary one
Borys Musielak notes that in Poland there is still only a small group of business angels operating “full time” and actively contributing to the development of the startup ecosystem.
“In most cases, these are individuals who focus on running their own companies or on their professional careers. They treat investing as a secondary activity and a form of capital diversification,” says a representative of Smok Angels.
He adds that business angel networks play an important role in structuring and professionalizing the market. Individual investing – without the necessary time resources, expertise, and experience – can be inefficient. In practice, many investors have incurred losses on standalone, single-project bets.
“Investor networks help with deal selection, risk sharing, and supporting portfolio companies,” Borys Musielak concludes.
Why do investors still prefer real estate?
The question of why relatively few investors in Poland choose startups over more traditional assets such as real estate has several answers.
“On the one hand, the number of business angels has indeed been growing, especially in recent years. On the other hand, the key driver attracting new investors is spectacular success stories. The example of ElevenLabs showed that very early-stage investments can generate above-average returns. For many people, it was the first clear signal that relatively small amounts of capital can translate into significant gains,” says Borys Musielak.
For a long time – and still today – Poland has lacked effective exit opportunities for startup investments. Another important factor is relatively low levels of social trust, which limits the willingness to co-invest. Real estate, by contrast, is perceived as a simpler, more predictable, and safer asset class.
A market that is difficult to measure
Many business angels operate “in the shadows,” without disclosing their capital involvement in companies. As a result, it remains difficult to precisely estimate the scale of this market segment. However, its observation and analysis have for several years been carried out by the business angel network Cobin Angels.
As Dominik Krawczyk, CEO of Cobin Angels, points out, clear trends in business angel investment are emerging on the Polish market. The first catalyst for growing interest in startups as an asset class was the launch of programs by PFR Ventures, which support the development of the venture capital (VC) sector and co-finance its activity.
“Before 2019, annual VC investment value in Poland fluctuated around PLN 100–150 million (approx. EUR 23–34 million). Today it stands at around PLN 2–3.5 billion (approx. EUR 460–805 million). The ecosystem has expanded, which naturally increases the share of business angels within it. The number of investments has also grown due to rising wealth in society, as well as the first major successes of Polish startups and a growing pool of people who participated in those successes – both on the investor and founder side,” says Dominik Krawczyk.
From ultra-wealthy to hands-on tech practitioners
Today, business angel roles are most often taken on by owners of mid-sized and large companies, as well as senior corporate executives.
“Business angels are no longer exclusively the wealthiest individuals. This form of investing has started to move into the mainstream. Many investors are also people who exited their own technology companies, including major startups, or worked in them. They know the market well, have strong networks, and understand how to develop technology-driven projects,” says Dominik Krawczyk.
As he notes, business angels most often deploy capital in areas and specializations they know well from their previous business experience. They also tend to prefer projects at more advanced stages of development.
“Business angels in our network are more likely to invest in companies that already generate initial revenues. Investing at a very early stage is risky; it requires building a large portfolio of companies and advanced knowledge of how to navigate this space,” the head of Cobin Angels points out.
Exits and a maturing market
Capital exits from technology companies remain a challenge for the market and are still relatively rare.
“They are beginning to appear, but still only sporadically. In Poland, there is also a lack of capital for investments at later stages of business development, as well as companies willing to make acquisitions, which makes exits more difficult. However, we should remember that the VC market is still in an early phase of development, and its effects will become visible over the next few years. This segment of investing requires patience,” emphasizes Dominik Krawczyk.
The role of business angels in startup financing
Business angel investments often play a complementary role alongside financing rounds led by venture capital funds.
“In the case of companies raising several million złoty, business angels can be an important component of the financing structure, although a single investor does not provide the full amount, but participates as part of a larger group,” says Maciej Zawadziński, partner at Hard2beat.
As he stresses, the role of business angels is not limited to providing capital alone.
“Additional capital can support the pace of growth, but equally important is non-financial support: access to networks, business partners, customers, unique industry know-how, and hands-on assistance in selected areas of company development,” adds Maciej Zawadziński.
Coexistence with funds and systemic challenges
From the perspective of investment structure, business angels acquire equity on the same economic terms as investment funds.
“The differences mainly concern additional rights linked to the scale of the investment, such as extra corporate privileges – for example, the right to appoint a member of the supervisory board. However, economic rights remain, as a rule, the same,” notes Maciej Zawadziński.
In practice, the coexistence of funds and business angels has become a market standard. Companies often actively invite selected investors if they see them as bringing added value to further development.
“At the same time, the market still faces systemic barriers – including a lack of standardization in investment documentation, limited awareness of available tax incentives, and a relatively small number of such incentives. As a result, each investment process often requires individual negotiations and legal support, which increases costs and reduces the efficiency of smaller transactions,” emphasizes Maciej Zawadziński.
In conclusion, the business angel market in Poland remains in a phase of maturation – both in terms of scale and institutional infrastructure. At the same time, the number of investors and their importance in startup financing is gradually increasing.
Key Takeaways
- Despite a growing number of investors and a larger VC market, Poland still faces a limited number of exits and a shortage of capital at later stages of company development. This, combined with lower levels of social trust and the continued attractiveness of investments such as real estate, slows the development of the startup segment. At the same time, an increasing number of technology success stories and growing venture capital activity are gradually reshaping the landscape. The market, however, remains in a phase of maturation and still requires time to fully realize its potential.
- The business angel market in Poland is gradually becoming more professional and is no longer the exclusive domain of the ultra-wealthy. Increasingly, technology entrepreneurs, managers, and business owners are stepping into this role, bringing not only capital but also experience and networks. At the same time, a significant group of investors still prefers more traditional and lower-risk asset classes. As a result, the market structure remains diverse, and investment approaches are far from uniform.
- Investing in startups involves high risk, which is why business angels need to diversify their portfolios by investing in a larger number of projects. At the same time, a preference for more mature companies that already generate revenues limits funding for the earliest stages of development. Investor networks play a key role in selecting deals and mitigating risk, helping to structure the market and support capital allocation decisions. Individual startup investing can often be inefficient, particularly when business angels lack the necessary knowledge and experience.