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Polish Stocks & Funding Through Warsaw Stock Exchange

According to Startup Poland, the number of startups in Poland equals c. 4,500, thereof c. 60% are from the Information, Communication and Technology (ICT) sector.
DALL·E 2023 10 16 16.40.36 Photo of a vibrant tech hub in Poland. Young professionals are collaborating in an open workspace with laptops and whiteboards. Infographics on the w - Polish Stocks & Funding Through Warsaw Stock Exchange -%sitename%
Adrian Kowolik

Adrian Kowolik

Adrian Kowollik has 16 years of professional experience gained at a leading German asset manager and a corporate finance boutique, among others. He has deep knowledge of the Eastern European and DACH-based equity and startup markets. He mainly provides advisory, corporate access and research services to Polish and DACH-based companies.

Startup Ecosystem in Poland

According to Startup Poland, the number of startups in Poland equals approximately 4,500, of which around 60% are from the Information, Communication, and Technology (ICT) sector. This compares to over 61,000 startups in Germany (Source: cf-fachportal.de). However, there are differences between the two countries regarding funding sources.

Funding in Germany

In Germany, according to statista.de, the volume of V.C. funding reached a value of EUR 3.36 billion in 2022: business angels and international V.C. funds mainly fund startups of all stages.

Funding in Poland

The V.C. sector in Poland is still relatively undeveloped and dominated by domestic investors. With a transaction volume of EUR 800 million last year, state-controlled PFR Ventures and NCBiR accounted for around 40% of the total. These institutions manage E.U. funds, which Poland has received for R&D projects.

E.U. Perspective and Financing Challenges

For Poland, the new E.U. perspective 2021-2027 foresees a total of PLN 350 billion, of which PLN 36 billion is supposed to co-finance innovative projects. Typically, the state-owned funds only provide 2/3 of a project’s financing, while private investors must commit the rest.

Financing Rounds in Poland

Polish startups usually have no problems with initial financing work on their products. Still, an issue arises during financing rounds between the Seed stage and Series A (EUR 1-4 million) because they are too large for local investors, and there are still not many international V.C. funds active in Poland.

The Warsaw Stock Exchange Alternative

In response to this issue, the Warsaw Stock Exchange created the alternative NewConnect segment in 2007. Since then, several hundred small companies have used this opportunity to raise funding, which is possible through a public or private placement and is affordable even for young companies. Due to low listing requirements, the quality of the NewConnect companies is not always the best, and there have been many frauds in the last few years. However, some companies already have or have the potential to become big success stories.

Success Stories

Examples include PGS Software S.A. (was bought by Durch PE fund Waterland Private Equity in 2021 for approximately EUR 95 million, 45x its IPO valuation) and BLIRT S.A. (was acquired by German Qiagen in 2022 for around EUR 60 million).

Watch Elevator Pitches

You can watch the Elevator Pitches of two promising listed Polish startups – Genomtec S.A. and XTPL S.A. – on seat11a.com.




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