This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
Erste Bank Polska will become the first private investor in the government’s Innovate Poland program, according to information obtained unofficially by XYZ. The participation of PKO BP and Pekao is also expected to be announced on November 5. The involvement of these banking giants could provide a significant boost to investment in innovative Polish companies.
Innovate Poland is the government’s flagship program for increasing funding for new technologies. It aims to do so by strengthening investment by private equity (PE), private debt (PD) and venture capital (VC) funds.
In recent months, the Polish Development Fund (PFR) and its investment arm, PFR Ventures, have sought to bring institutional investors, including banks and insurers, into the program. Their participation will determine its ultimate scale.
Innovate Poland is attracting considerable market interest. Behind the scenes, three banks are already said to be willing to join the program, with talks at an advanced stage. According to unofficial information obtained by XYZ, they may be Erste Bank Polska, PKO Bank Polski and Bank Pekao.
Which institutions has PFR signed agreements with as part of the so-called second closing of Innovate Poland, and with which is it still finalizing them? PFR is expected to share updates on the program tomorrow.
The banks’ involvement could create additional room for PE and VC investment. It remains a relatively new model on the Polish market, however, which is still learning how to use it and assessing whether it is worthwhile.
PFR had announced plans to attract more investors
In an August interview with PAP Biznes, Mikołaj Raczyński, now president of PFR and then its vice president, noted that Poland’s capital market was not as developed as those of Western Europe.
“Many of the institutions we are speaking with have never invested in this type of product before. Our goal is also to introduce new investors to this segment of the market so that they will be willing to invest even larger amounts in the future. […] The investors announced so far in the program [Innovate Poland — ed.] are PFR, BGK and PZU, but that is only the first step. We see an opportunity for another three or four investors to join,” Raczyński said at the time.
The framework for Innovate Poland was presented in November last year, with an announced value of PLN 4bn. The capital is intended to reach several hundred companies through equity investments.
At the first closing, insurer Powszechny Zakład Ubezpieczeń (PZU) joined as the first commercial partner, alongside the Polish Development Fund, Bank Gospodarstwa Krajowego (BGK) and the European Investment Fund (EIF).
Banks and insurers in Innovate Poland’s sights
Even at that stage, the program’s organizers said it was intended to open the door to cooperation with further institutional investors. Financial sector representatives appeared to be natural partners for discussions about joining the Innovate Poland platform.
“Following its first closing, Innovate PL FoF already has nearly EUR 600m at its disposal, and PFR Ventures is in talks with institutional investors beyond PZU. These are expected to include both Polish and international institutions, including banks, insurers and large corporations. Investors will be able to contribute capital to Innovate PL FoF for at least another year after the first closing, in line with investment fund market standards,” Rozalia Urbanek, president of PFR Ventures, told XYZ in August 2026.
Innovate Poland’s two pillars: what can investors gain?
The Innovate Poland platform rests on two pillars. The first, Future Tech Poland, is being implemented by BGK and the EIF, with PLN 1.5bn allocated to investments in venture capital funds.
The second pillar is Innovate PL FoF, a fund of funds involving PFR, BGK and PZU. It is intended to support the private equity sector and investments in more mature companies. The remaining PLN 2.4bn has been allocated for that purpose.
Among the officially stated reasons for PZU’s investment was the search for an attractive return from a diversified portfolio of PE, VC and PD funds. The insurer said it was taking a business-oriented approach to its participation in Innovate Poland.
Could the program also offer banks and financial institutions a route into profitable business? According to people familiar with the Polish capital market whom we spoke to, at this stage it is more of a test and an exploration of new investment areas. Over time, however, the addition of further Polish and foreign institutional investors could create a snowball effect. This would strengthen Innovate Poland’s position and reach while allowing it to increase the scale of its investments.
Our information was confirmed at a PFR press conference. We also learned which firms will receive the first flow of capital from Innovate PL FoF. Funds managed by AMC, Avallon, Cogito Capital Partners, Innova, Inovo.vc and MidEuropa have been accredited. They will receive a combined PLN 500m from the fund of funds under the program.
Expert's perspective
A look at Poland’s capital market: a gap to close
In my view, this is not about an immediate breakthrough, but a first step toward building a large fund that could, over time, have a real impact on the market. Such models have already been tested and are operating around the world.
In many respects, Poland’s capital market is as much as 20 years behind those of highly developed economies. Exchange-traded funds are one example: they have long been present in Europe, but their development in Poland only gained momentum in the past two years.
The same is true of the private equity market, which has a much more complex structure. Investing in this asset class requires sufficient capital and know-how. Its investors are primarily very wealthy individuals and large financial institutions. In Poland, the number of individual investors with sufficient wealth is only now growing. Institutional investors’ capacity is also increasing, allowing them to allocate more money, as part of portfolio diversification, to additional asset classes that have long been used in more developed markets.
Similar delays were visible when Employee Capital Plans (PPK), Poland’s employee savings program, were launched. Even then, the lack of alternative asset classes was noted. The first private debt funds appeared in PPK portfolios only last year, after the program had been operating for roughly seven years. This shows that building a capital market takes time and local leaders.
Could progress have been faster? It was difficult to expect such solutions to emerge earlier when the Polish market was still developing.
Key Takeaways
- More large institutional investors may join Innovate Poland. The banks named in this context include Erste Bank Polska, PKO Bank Polski and Bank Pekao. Their involvement would increase the pool of capital available to funds and, consequently, the scale of investment in Polish companies.
- For banks, joining the program primarily means entering a new market segment. Investments in private equity and venture capital funds can help diversify portfolios and provide additional sources of return. For now, however, participation is more an exploration of the opportunities than the beginning of a major capital commitment. Over time, experience gained through the program may encourage institutions to invest more in this asset class.
- Developing the private equity market requires not only capital but also time and investor experience. Poland is still catching up after years of lagging behind more developed European markets. Innovate Poland could help build this segment by attracting banks, insurers and other institutional investors. The program’s success, however, will depend on whether it can sustain their interest and turn it into a long-term commitment.