This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
The inflow of foreign capital is important for the development of Poland’s venture capital (VC) market. Domestic funds have limited resources, while technology companies need increasingly large funding rounds to expand their operations and enter new markets. Cooperation with foreign investors not only brings in additional capital but also gives Polish funds opportunities to exit earlier investments.
According to the Transakcje na polskim rynku VC Q3 2026 report - Transactions on the Polish VC Market, Q3 2026 - prepared by PFR Ventures and Inovo.vc, joint investments by Polish and foreign funds accounted for 55% of transaction value in the first three quarters of the year, excluding the largest rounds. Investments made independently by foreign entities accounted for 15% of market value, while those made exclusively by Polish funds represented 30%.
Foreign investors rarely enter the Polish market on their own: such deals account for only around 15% of the market. Cooperation between a local and a foreign investor is becoming the norm. The growing importance of co-investment is evident in the data: three of the five largest deals during the period followed this model. At the same time, international investments by funds are most often made independently, as in the case of the European Bank for Reconstruction and Development’s (EBRD) investment in Sportano, according to Dmytro Golournyi, an analyst at PFR Ventures, quoted in the report.
Interactive chart Polish startups are gaining visibility abroad
Poland’s VC market remains small compared with those of Western Europe, let alone the United States. But its international profile is growing. Foreign investors are recognizing both the potential of Polish technology teams and the growth opportunities for companies created by Polish entrepreneurs.
“Global investors have an increasingly positive view of Polish founders. What is crucial, however, is the growing connection between our ecosystem and the global market for capital, customers and potential buyers,” says Dariusz Żuk, founder of the AIP Seed funds.
In his view, Polish founders should be supported wherever they build their companies. They might even be encouraged to operate in the United States, particularly Silicon Valley. It is currently the most important market, with the greatest concentration of capital, talent and potential customers.
“Our ambition should not be to build the best startups in Poland, but to have Polish founders build the best companies in the world. That is the best path to major global successes and exits, which our Polish ecosystem needs so much,” Żuk adds.
Expert's perspective
Every second VC deal in Poland combines domestic and foreign capital
Every second transaction on the Polish VC market is built on a combination of foreign and local capital. Stories such as Viktor’s are particularly interesting. The Polish team at Inovo.vc identified the project at an early stage, and a group of international funds - both regional and global - joined later.
The international network is expanding, but it remains primarily the domain of funds with an established position in Poland. Polish entrepreneurs who invest as business angels are also becoming a gateway to international investors. Mati Staniszewski of ElevenLabs is a good example, but there are others.
Selling a stake does not always mean a favorable exit
At the current stage of development of the Polish VC market, secondary transactions - the resale of existing shares to another investor - are not always the best way to exit an investment. This also applies when the buyer is a foreign fund participating in the company’s next funding round.
“When a fund invests in a company, it sees the potential for its value to increase several times over or even by several dozen times, depending on the stage at which it invests. In my experience, however, typical secondary transactions take place at a discount of around 20%. This is due to a lack of liquidity in the VC market or the approaching end of a fund’s life, when it must exit all of its portfolio companies to return capital to its investors,” says Maciej Zawadziński, a partner at Hard2beat.
A stake may also be sold in preparation for raising capital for the same team’s next fund. Completed exits allow fund managers to show potential investors not only that their portfolio companies have increased in value, but also that they can recover invested capital and generate profits.
“More favorable exits usually take place at a later stage of a company’s development, through a sale to a strategic investor or an initial public offering,” Zawadziński says.
The timing of an exit matters
If a Polish investor sells its stake early in a company’s development instead of participating in the next funding round, this can raise questions about the business’s future prospects.
“Foreign funds look at whether existing investors still believe in the company and are willing to continue financing it,” Zawadziński says.
Not every sale of shares, however, is necessarily seen as a warning sign. The situation is different when a fund invested in a startup at the seed stage and the company is already raising Series A or Series B funding. In that case, an early investor’s partial sale can be a natural stage in the company’s development and a way to free up some capital.
Local partners make investing easier for foreign funds
Poland’s VC market is gradually maturing, although it remains smaller and less developed than those of Western Europe. According to Zawadziński, foreign investors are drawn primarily by strong teams and innovative technology projects. Less competition among funds and the opportunity to invest at lower valuations than in more developed Western European markets also matter.
Foreign funds often prefer to invest alongside Polish partners, who have a better understanding of the local market, entrepreneurs and business environment. This allows them to assess a team’s capabilities, the founders’ credibility and the technology’s potential more effectively, thereby reducing investment risk.
“A company’s stage of development also matters. Once a startup has its first customers and can demonstrate real market demand for its product, foreign investors can more easily assess its prospects. Earlier Polish investors are also increasingly joining rounds led by foreign funds,” Zawadziński says.
Foreign funds seek larger rounds
The size of investments remains a significant barrier to cooperation. Foreign funds often manage substantially more capital than Polish ones and set a minimum amount they are willing to invest in a single company. A funding round of PLN 3m–4m, while significant for an early-stage startup, may be too small to attract a large investor.
“That is why, at Hard2beat, we connect foreign investors directly with Polish companies so they can get to know them before the time comes for a larger round. In September, we organized THE MOAT, a closed event primarily for foreign deep-tech funds. Its aim was to introduce investors to the best Polish companies in the sector,” Zawadziński says.
More than 200 people attended the event, held in Warsaw on September 23, including representatives of more than 30 foreign funds.
Zawadziński believes interest in the Polish market will grow if funds and entrepreneurs consistently show foreign investors the potential of domestic companies. In his view, developing competitive businesses and making it easier for foreign funds to access the most promising projects matter more than additional investment incentives.
Key Takeaways
- Foreign capital is increasingly reaching Polish startups through partnerships with local funds. In the first three quarters of 2026, co-investments by domestic and international investors accounted for 55% of transaction value, excluding the largest rounds. Polish partners help foreign funds find promising companies, assess their potential and reduce investment risk.
- Reselling a stake to a foreign fund is not always the most favorable way to exit an investment. According to Maciej Zawadziński, typical secondary transactions may take place at a discount of around 20%. Factors include limited liquidity in the VC market and pressure to recover capital before a fund reaches the end of its life. A sale to a strategic investor or an IPO may generate higher returns, although they usually require a longer wait.
- Foreign funds are looking for Polish companies ready for larger funding rounds. They are most interested in startups with strong teams, developed technology and demonstrated customer interest. The amount of funding sought can be a barrier when it is too small for large international investors. Polish funds therefore seek to build relationships abroad well before the next funding rounds begin.