Poland’s VC market hits record high. 2 deals tell most of the story

This article is a part of Poland Unpacked. Weekly intelligence for decision-makers

Poland’s venture capital market posted a record first half of the year, but more than 80% of the investment value came from two enormous funding rounds — those of ICEYE and ElevenLabs. Excluding these transactions, the market is growing at a slower pace, while investors are changing their strategy: deploying more capital into a smaller number of startups.

The total value of venture capital (VC) investments in the first half of 2026 surged to more than PLN 4.6 billion (approximately EUR 1.1 billion), according to the latest report, “Transactions on the Polish VC Market Q2 2026,” prepared by PFR Ventures and Inovo.vc. Polish startups raised more capital than in any of the best full years in the history of the domestic VC market. However, this record-breaking figure does not fully reflect the market’s underlying condition. The vast majority of the reported amount comes from two massive funding rounds completed in the first half of the year: ICEYE raised PLN 1.9 billion (approximately EUR 450 million), while ElevenLabs secured PLN 1.8 billion (approximately EUR 430 million).

“VC has always focused on outliers, but the artificial intelligence (AI) revolution has taken this phenomenon to another level. Capital is flowing towards the winners in particular categories. ElevenLabs in the first quarter, ICEYE in the second, with a round worth more than EUR 1 billion and a valuation exceeding EUR 10 billion. The entire market is now looking for the next company of this scale,” says Karol Lasota, partner at Inovo.vc, as quoted in the report.

Polish VC still primarily targets early-stage companies

Excluding ICEYE’s mega-round, the value of VC investments in the second quarter of 2026 amounted to PLN 594 million (approximately EUR 140 million). The capital went to 43 startups, with 56 funds participating in the transactions. This represents a 2% increase in market value compared with the second quarter of 2025.

To put this into context, in the first quarter of the year, companies received PLN 310 million (approximately EUR 75 million) from investors, excluding ElevenLabs.

Although spectacular funding rounds attract the most attention, the structure of the Polish market has remained largely unchanged for years. Most transactions continue to involve pre-seed and seed rounds – financing for startups at the earliest stages of development. In the second quarter of 2026, there were 33 such transactions, compared with 36 in the first quarter. By comparison, the number of Series A rounds stood at seven and eight respectively, while Series B rounds totaled two in each quarter.

Later-stage funding remains rare in the VC market

Later-stage financing remains significantly less common. In the first half of 2026, only individual Series C and Series D/E rounds were completed, while no growth-stage deals were recorded.

Historical data also shows that seed rounds remain the largest segment of the market regardless of the broader investment climate. Between 2021 and 2023, the number of such transactions in individual quarters exceeded 100, while since 2024 it has remained at a distinctly lower level. This decline is linked to the completion of the National Centre for Research and Development’s BridgeAlfa program, under which investment vehicles financed a large number of startups with relatively small amounts of capital. Despite this shift, seed financing continues to represent the largest segment of Poland’s venture capital market.

Expert's perspective

At the seed stage, the ecosystem is undergoing a significant shift. Funds are increasingly co-investing with local and international partners, as well as with business angels. In the first half of 2026, co-investments already accounted for 59% of the total value of all transactions.
This allows founders to raise larger rounds, while broader investor participation is driving greater competition and more favorable terms. The balance of power in the market is once again shifting towards entrepreneurs.

Larger rounds are replacing fragmented financing

The data shows that, after 2023, both the average and median value of individual VC transactions increased significantly. In the first half of 2026, the average investment size reached PLN 6.7 million (approximately EUR 1.6 million) in the first quarter and PLN 13.8 million (approximately EUR 3.3 million) in the second. By comparison, in most quarters between 2020 and 2023, the figure ranged from around PLN 3 million to PLN 8 million (approximately EUR 700,000 to EUR 1.9 million), although there were occasional spikes, such as PLN 12.5 million (approximately EUR 3 million) in the fourth quarter of 2021 and PLN 9.5 million (approximately EUR 2.3 million) in the second quarter of 2022.

The shift is even more apparent in the median transaction value, which provides a better indication of a typical investment size. Between 2020 and 2023, the median remained at around PLN 1–1.1 million (approximately EUR 240,000–260,000), with only a temporary increase to PLN 1.8 million (approximately EUR 430,000) in the third quarter of 2021. Since the end of 2023, the median has started to rise, surpassing PLN 2 million (approximately EUR 480,000), and has remained between PLN 2.4 million and PLN 4.6 million (approximately EUR 570,000–1.1 million) in 2024–2026. In the second quarter of 2026, it reached PLN 4 million (approximately EUR 950,000).

Again, part of the data is influenced by the previously mentioned BridgeAlfa program, which was phased out alongside the end of the EU-funded Innovative Economy Operational Program, the predecessor to the current European Funds for a Modern Economy program.

The end of the small-check era?

According to Maciej Małysz, partner at Inovo.vc, a shift in the investment model is becoming increasingly visible at the seed stage. As he notes, funds are committing more capital to a relatively smaller number of companies. Between 2020 and 2023, more than 100 seed rounds were completed each quarter, with a median value of around PLN 1 million (approximately EUR 240,000). Today, the number of such rounds has fallen to around 30, but the median has tripled – reaching PLN 3.1 million (approximately EUR 740,000).

According to Małysz, this may signal the end of the small-check era. He also pointed out that new funds backed by PFR Ventures are often choosing to jointly participate in larger funding rounds. In his view, larger investments allow startups to compete more effectively on global markets and make more ambitious strategic decisions.

While the average transaction value is subject to greater quarter-to-quarter fluctuations, the median has remained at a clearly higher level since 2024 than in previous years. This trend follows directly from the data presented and is not driven by individual record-breaking deals, as the authors of the report note that the average was calculated excluding outliers, while the median includes all funding rounds.

Public money continues to drive the market

In the second quarter of 2026, public capital continued to play a crucial role. Funds backed by PFR Ventures accounted for 62% of the total value of all transactions. This means that nearly two-thirds of invested capital came from instruments financed by PFR Ventures.

In terms of transaction value, international private funds ranked second, accounting for 16% of the market. A further 13% came from investments carried out by BGK and Vinci, while private Polish funds represented 9% of the market’s value.

PFR Ventures’ dominance is also evident in the number of completed transactions. Funds using this financing participated in 19 investments. By comparison, Polish private funds completed 13 transactions, international private funds took part in nine, and BGK state development bank (through Vinci) participated in two investments.

ICEYE’s success gives Polish SpaceTech a boost

The second quarter of this year clearly belonged to ICEYE. The company’s rapid growth and strong investor interest in its business have also drawn attention to the broader space sector and suppliers of space technologies – SpaceTech.

Rafał Modrzewski, co-founder and CEO of ICEYE, says the company remains a European business with Finnish-Polish roots and a global reach. He highlighted the company’s Constellation Europe concept – a federated network of more than 1,000 European satellites, in which national assets remain under the control of individual countries but can operate as a single system when required.

In his view, the figure of 1,000 satellites for the continent may initially appear excessive, but private operators are already building constellations consisting of thousands of devices. Modrzewski also argued that the development of such capabilities could create an opportunity for Poland’s young space sector. If Europe recognizes these capabilities as a strategic priority, Polish companies – whose numbers are steadily increasing – will grow alongside the broader ecosystem.

The record performance of the VC market in the first half of 2026 does not represent a complete transformation in the scale of investment in Poland.
More than PLN 4.6 billion (approximately EUR 1.1 billion) in capital raised was largely driven by two exceptionally large funding rounds – those of ElevenLabs and ICEYE. Excluding these transactions, the market is growing at a much more moderate pace, while its structure remains broadly similar to previous years.
Poland’s venture capital market is undergoing a shift in its investment model. Funds are committing more capital to a smaller number of companies, and the median transaction value is significantly higher than in 2020–2023. At the same time, the importance of co-investments is increasing, enabling investors to participate in larger funding rounds.
Financing for young companies remains the foundation of Poland’s VC market. Despite the rise in individual investment sizes, most transactions still involve pre-seed and seed rounds. The market also remains heavily reliant on public capital – funds backed by PFR Ventures accounted for the majority of investment value in the second quarter of 2026.