This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
The private equity (PE), private debt (PD), and venture capital (VC) communities have been anticipating the Innovate Poland program since it was announced several months ago by Andrzej Domański, Minister of Funds and Economy. The platform’s core framework, inspired by the Tibi plan that transformed France’s PE and VC landscape, has now been unveiled.
As part of Innovate Poland, up to 250 Polish companies – ranging from startups to established businesses – will receive PLN 4 billion (EUR 944m) in private equity and venture capital funding. The initiative has secured backing from its founding partners:
- the Polish Development Fund (PFR – supports Poland’s sustainable economic development by offering comprehensive financial and advisory solutions to businesses and local governments),
- Bank Gospodarstwa Krajowego (BGK – a state development bank, the only such institution in Poland),
- the European Investment Fund (EIF),
- and PZU (one of the biggest financial institutions in Poland and the CEE, with a 34% stake held by the State Treasury, as a commercial partner).
While the specific financial commitments from each institution haven’t been disclosed, the platform remains open to additional private institutional investors. Sources indicate that several parties have expressed interest and discussions are currently underway.
“Poland ranks among the fastest-growing economies in the European Union. But sustaining this momentum requires building infrastructure for long-term growth – not just for the next year, but for the next decade.
Poland currently lags behind Europe in capital market development, creating significant financing gaps for early and mid-stage companies that lack access to traditional bank lending. So, these companies are forced to seek capital abroad, ultimately weakening the domestic economy. Meanwhile, Polish companies’ R&D spending remains below the EU average – not to mention far behind the United States.
There’s also a pronounced gap in private equity and venture capital financing. That’s why we want to establish a fund-of-funds platform to mobilize private capital for investment in innovative Polish companies,” explains Andrzej Domański, Minister of Finance and patron of the Innovate Poland program.
Innovate PL Fund of Funds receives accreditation
Innovate Poland will operate as a fund of funds, launching within the next few months once the required legal and regulatory procedures are completed. PFR (Polish Development Fund) and the EIF (European Investment Fund) will jointly manage the program, overseeing the selection process and making investments in PE (private equity) and VC (venture capital) funds. The number of funds that will receive capital has not been predetermined – allocation decisions will be made on a rolling basis throughout the selection process.
The program introduces a new instrument to Poland’s investment landscape: Innovate PL FoF Accreditation. This certification system identifies funds that demonstrate professionalism and market credibility, making it easier for top-tier management teams to secure capital.
The Minister of Finance projects that the allocated PLN 4 billion (EUR 944m) will at least double through private co-investment. Funds qualifying for the program will be required to raise matching capital from private investors.
Investor's opinion
Does the market need Innovate Poland?
Innovate Poland draws inspiration from France’s Tibi plan, focusing on mobilizing both private and institutional investors. PZU, Poland’s leading insurer, is already on board – a significant development given that insurers play a major role in private equity and venture capital markets globally. I’m hopeful that banks will follow suit, particularly with encouragement from BGK, another key platform participant.
The involvement of the European Investment Fund looks particularly promising. Its current engagement with Polish funds is limited, but I expect Innovate Poland to change that dynamic.
That said, many questions remain. The devil will be in the details – specifically, how the committed funding gets allocated. We’ll need to see which VC funds secure capital, what the selection criteria look like, and whether these funds can successfully attract private co-investors. Much of this will only become clear once Innovate Poland moves into its implementation phase.
The structure of the Innovate Poland platform
While full details are still emerging, Innovate Poland will be built on two distinct pillars.
The first, Future Tech Poland, will be coordinated by PFR and EFI. It will provide venture capital financing – PLN 1.5 billion (EUR 354m) earmarked for investments in early-stage technology companies.
The second pillar is the Innovate PL FoF (fund of funds), which will see all partners actively involved: PFR, BGK, and PZU. This component will support the private equity sector and more mature startups at advanced stages of development. The remaining PLN 2.4 billion (EUR 566m) has been allocated here.
Looking ahead, the program’s next phase (2026-2027) is expected to bring additional institutional investors into Innovate PL FoF, expanding the overall budget. The initiative also aims to strengthen collaboration between development capital providers and private capital in co-investing in Polish companies.
Expert's perspective
Blending public and private capital
As Poland’s first large-scale initiative systematically combining public and private capital to back innovative companies, Innovate Poland represents a cornerstone of the government's development policy and a vital piece of the country's evolving capital market infrastructure.
PZU joins investment platform to boost Poland’s private capital market
Innovate Poland aims to mobilize private institutional capital – a resource in short supply in the Polish market.
PZU, the leading insurer in Poland, has become the platform’s first private-sector partner, positioning itself as a pathfinder for other institutional investors.
“PZU is investing in Innovate Poland because we see a compelling business opportunity,” says Bogdan Benczak, acting President of PZU. “With access to a large, diversified portfolio spanning private equity, venture capital, and private debt funds, we can generate very attractive returns. This also allows us to expand our investment portfolio with Polish funds, supporting greater domestic participation in the local economy.”
VC market remains reliant on public funding
Polish startups raised a total of PLN 2.2 billion (EUR 507m ) from domestic and international investors in the first three quarters of 2025, according to the “VC Transactions on the Polish Market Q3 2025” report by PFR Ventures and Inovo.vc. This figure is comparable to the full-year venture capital market totals for both 2024 and 2023, though it falls short of the record highs of approximately PLN 3.6 billion (EUR 850m) achieved in each of the two preceding years.
Poland’s VC market has remained heavily dependent on public capital – primarily EU funds – for years. In Q3 2025, just 5% of the PLN 464 million (EUR 110m) invested in tech startups came from Polish private investors, while 35% originated from private investors abroad.
The challenge is that government-backed programs predominantly fund early-stage companies. A significant capital gap emerges when startups mature and require larger investments to scale operations and expand internationally.
Mini-interview
Private institutional capital is in short supply
Anna Bełcik, XYZ: Do you believe the Innovate Poland program has the potential to reinvigorate the venture capital sector and accelerate its growth?
Anna Wnuk, Managing Director of Polish Private Equity and Venture Capital Association (PSIK): I believe the Innovate Poland program will chart a new course for Poland’s private capital market. Strengthening domestic capital and fostering public-private collaboration could be decisive factors in driving innovation and productivity in the Polish economy over the coming years. Poland is transitioning from an economy built on low labor costs to one that is innovation-driven and capital-intensive. Private equity and venture capital funds have a critical role to play in this shift, as they channel capital toward ventures with the strongest growth potential.
What impact have PE/VC funds had on the Polish economy in recent years?
Over the past decade, PE/VC funds have invested approximately EUR 10 billion in nearly 700 Polish companies, creating over 100,000 jobs and strengthening balance sheets across businesses at all stages of development. A substantial share of recent IPOs have been PE/VC-backed – and these funds bring more than just capital. They introduce best-in-class governance standards, operational expertise, and proven strategies for international expansion. According to PSIK and Invest Europe, PE/VC investments deliver above-average returns while driving productivity gains and boosting the global competitiveness of Polish companies.
Despite this track record, Poland’s private equity market is often misunderstood in public discourse, reduced to outdated stereotypes. In reality, the data tells a different story: private equity (PE), venture capital (VC), and private debt (PD) funds have become essential pillars of the modern economy, providing patient capital, management expertise, and the catalyst for technological innovation.
Is Poland’s capital gap hurting the country’s international competitiveness?
A thriving investment fund market is fundamental to any modern economy. Private equity and venture capital drive ownership transitions, digitalization, green transformation, international expansion, and technology adoption. In Central and Eastern Europe, countries like the Czech Republic and the Baltics are increasingly leveraging local pension and insurance funds to finance PE/VC activity. Poland is falling behind – such investments represent just 0.15% of GDP here, versus an EU average of 0.55%. This gap points to both a capital shortage and significant growth potential for the sector.
Will Innovate Poland mark a turning point for the private equity market?
The program is designed to strengthen Poland's PE/VC/private debt ecosystem by bringing more institutional investors into the market, attracting foreign capital to Polish funds, and improving access to financing for companies in the scale-up and international expansion phases.
Notably, the program's framework was developed with input from key public and financial institutions all of which have been instrumental in shaping investment instruments in Poland’s private equity and venture capital market for years.
Innovate Poland has the potential to be a watershed moment for Poland's private capital market – but only if public-private collaboration remains strong and the proposed instruments deliver effective returns.
What are the prospects for Poland’s PE/VC sector?
For over two decades, the Polish Private Equity and Venture Capital Association (PSIK) has been advocating for the development and democratization of Poland's PE/VC/private debt market, emphasizing the need to open it up to local institutional investors. Until now, regulatory and practical barriers have meant that returns from domestic market investments have flowed primarily to foreign investors. Easing restrictions for pension funds, banks, and insurers—and establishing effective co-investment mechanisms – could significantly expand the available capital pool.
However, developing the private equity market isn't just about mobilizing capital. It’s also about building expertise, facilitating technology transfer, and strengthening economic resilience. Innovate Poland could be the catalyst for this transformation – but only if it's implemented consistently and backed by the right regulatory reforms.
Why does PE/VC/private debt require government support?
Private equity, venture capital, and private debt aren’t alternatives to a public capital-based economy – they're essential complements to it. Without a robust private capital market, Poland will struggle to maintain its pace of growth and innovation in the decade ahead.
Key takeaways
- Innovate Poland, inspired by the French Tibie plan, is designed to be a mechanism for mobilizing private and institutional capital to invest in Polish companies. It supports the private equity, private debt, and venture capital sectors. The platform is set to inject PLN 4 billion (EUR 944m) into the market, supplemented by contributions from funds qualified for the program.
- Innovate Poland's partners include: the Polish Development Fund (PFR), Bank Gospodarstwa Krajowego (BGK), the European Investment Fund (EIF), and Powszechny Zakład Ubezpieczeń (PZU – commercial partner). The platform's initiators are expecting additional private institutional investors to join.
- "Over the last decade, PE/VC funds have invested approximately EUR 10 billion in nearly 700 Polish companies, supporting the creation of over 100,000 jobs and strengthening the capital structure of companies at various stages of development. A significant proportion of recent IPOs were backed by private equity and venture capital, which bring not only capital but also expertise, corporate governance standards, and experience in scaling operations in international markets," emphasizes Anna Wnuk, managing director of PSIK.