POLAND Trends and Developments Contributed by: Rafał Celej, Arkadiusz Klejnowski and Karolina Piotrowska-Andryszczyk, Kondracki Celej
Market Overview The Polish venture capital market has continued to evolve over the past 12 months, maintaining resilience in a global environment marked by capital tightening, subdued exit markets and investor caution. While the number of transac - tions has decreased somewhat compared to previous years, overall activity has been stable, with investment volumes concentrating around more promising and well-prepared early-stage companies. Rather than signalling a broader shift towards later-stage transactions, this trend reflects growing selectivity among investors who are prioritising capital efficiency, product-market fit, and strong founder teams. Several structural features continue to shape the Polish VC landscape. The majority of invest - ments were directed towards early-stage and seed rounds, reflecting the strength of Poland’s founder pipeline and the central role of public capital mechanisms in supporting first-time institutional capital. Notably, the market is cur - rently navigating a transitional phase between funding frameworks, as vehicles backed under the POIR ( Program Operacyjny Inteligentny Rozwój ) framework turned into divestment phase and new funds selected under the EU’s FENG ( Fundusze Europejskie dla Nowoczesnej Gospodarki ) programme begin deployment. This interim period has contributed to temporary fluc - tuations in capital availability and delayed some fund launches, particularly in the seed segment. However, later-stage financing remains relatively constrained and increasingly reliant on super angels, international syndicates, family offices, and private VC funds. Cross-border investment activity has remained robust, with foreign inves - tors participating in more than half of all VC capi - tal deployed during the period.
The ecosystem has also seen greater consolida - tion and professionalisation. Repeat fund man - agers now dominate the most active quartile of GPs, and legal and commercial terms in venture transactions are becoming more standardised and aligned with international practice. While public capital continues to anchor most early- stage activity, there is a visible push towards more thematically focused funds, sector spe - cialisation, and alignment with EU innovation and digitalisation goals. Overall, Poland maintains its position as one of the key innovation and venture capital hubs in Central and Eastern Europe. Continued support from public institutions, combined with grow - ing participation from global capital, provides a foundation for cautious optimism, particularly if local exit channels and late-stage funding options expand in the coming years. Legal Forms of Venture Capital Alternative investment company (ASI) The predominant legal structure for venture cap - ital funds in Poland is the alternative investment company ( Alternatywna Spółka Inwestycyjna ASI). This vehicle operates under the Polish Act on Investment Funds and is under supervision of the Polish Financial Supervision Authority (KNF). The ASI regime allows for both internally man - aged and externally managed funds and offers a relatively light-touch regulatory framework for vehicles with assets under EUR100 million. An ASI is most commonly structured either as a limited liability company ( spółka z ograniczoną odpowiedzialnością ) or limited joint stock part - nership ( spółka komandytowo-akcyjna ), with a management company holding general partner rights. While some larger or internationally ori - ented funds are formed under Luxembourg or
447 CHAMBERS.COM
Powered by FlippingBook