A Team of Managers Targets Start-ups

January Ciszewski, Marian Owerko, Tomasz Misiak, Tomasz Gołębiewski, Ryszard Chmura — leading Polish entrepreneurs and investors will jointly finance technology companies. They are creating two funds with a total value of EUR 100 million.

For many years, the Polish venture capital (VC) market was financed mainly through public programs. Private investors, if they decided to transact involving technology companies at all—which are very risky from an investor's point of view—did so very cautiously, committing relatively small amounts. It is only in the last three years, as the total value of VC investments in domestic start-ups exceeded PLN 1 billion, that investor enthusiasm has grown. Every now and then, a group of experienced managers or entrepreneurs announces the creation of a fund. Smartlink Partners, another such venture, will be one of the largest in the country if plans are successfully realized.

Market Leaders' Initiative

Success is to be guaranteed by the cooperation of figures well-known in both the business and investment worlds. Behind the Smartlink Partners project stand: January Ciszewski, a stock market investor and President of JR Holding; Marian Owerko, co-creator of Bakalland, investor, founder and President of Uno Capital; Tomasz Misiak, co-founder of Work Service; Tomasz Gołębiewski, creator of Nesperta (known for hybrid nail polishes under the Semilac brand), from whom 70 percent of shares were recently purchased by the Resource Partners fund; and Ryszard Chmura, President of the Corporate Connections organization. Within the framework of Smartlink Partners, they are launching the Smartlink Venture and Smartlink Evolution funds, which will finance both early-stage start-ups and more advanced technology companies from Poland and Central and Eastern Europe.

The managers declare that in the coming years, a minimum of EUR 100 million will flow into the VC market through their funds. They will be supported in realizing their intentions by Rafał Brzoska, founder of InPost, the investment firm JR Holding, and the business organization Corporate Connections, "bringing together owners and major shareholders of the largest companies in Poland," which will facilitate access to a network of potential co-investors for the funds.

Inflow of Private Capital

Adam Rudowski Managing Partner at Level2 Ventures

The emergence of further private funds is very important for the entire venture capital system because the inflow of this type of capital to the market in Poland is severely limited. Furthermore, the development of the sector requires greater involvement of people who have not only investment experience but also business experience. Every example of an entrepreneur who successfully invests in start-ups encourages others to act. In Poland, this trend is just developing — our economy is still young, and we have few entrepreneurs who have sold their companies built over years and are looking for new spaces to allocate capital. Until now, entrepreneurs invested in technology companies mainly through public-private funds, supported by PFR or NCBR. The advantage of this formula is risk minimization, while the disadvantage is the lack of real influence on investment decisions and the selection of portfolio companies. In the case of private investments, non-financial contributions, particularly business consulting, are also valuable for start-up founders, especially young entrepreneurs. From the point of view of start-uppers, the Smartlink Venture team has a practically dream composition in this regard.

Complex Formula

At this stage, the creators of Smartlink Partners are not yet disclosing what the financing structure and sources will look like, or whether and who from the market has already expressed a desire to get involved in the two new funds. A current report by JR Holding from March 7 only indicates that the assumption for one of the entities is "to obtain initial capitalization of the ASI [Alternative Investment Company] at a level between PLN 100 and 200 million. The founders have made preliminary arrangements regarding the level of contributions [...] and ZASI capital, as well as principles for raising ASI capital, investment strategy, corporate governance principles, ZASI financing, and profit distribution policy. The investors […] intend to contribute investment capital in a total amount of PLN 20 million." The entity is to finance the development of Polish and foreign companies in sectors including: medtech, biotech, e-commerce, SaaS, fintech, cleantech, cybersecurity, blockchain, and foodtech. The fund will invest up to PLN 10 million in a single company.

From a subsequent report, published on March 22, we learn that in the case of the second fund, "the founders' goal is to obtain initial capitalization of the ASI at a minimum level of PLN 200 million." As with the first entity, strategic investors will contribute capital totaling PLN 20 million. The fund will invest mainly in Central European and German companies from the same industries as the former. The value of a single equity entry will range from PLN 10 to 30 million.

Smartlink Partners also does not comment on how it will reconcile the interests of all partners who, in various formulas, individually or through other funds, are already buying shares or stocks in companies. In this founding arrangement, January Ciszewski, among others, is linked to JR Holding, and recently also declared joining the new AIP Seed fund, targeting start-ups at the pre-seed and seed levels. Rafał Brzoska, Tomasz Misiak, and Marian Owerko are involved, for example, in the bValue fund. Marian Owerko also has his own Uno Capital.

Management and Investing

According to January Ciszewski, the greatest advantage of Smartlink Partners will be the combination of competence and experience in creating and managing, as well as investing in companies. The extensive network of the project partners' contacts will also be valuable. Current market conditions are also expected to favor them.

"The events of the last few years, especially the pandemic, have clearly shown the necessity of applying modern technologies in almost every area of life and have accelerated the adoption of the latest technologies in many traditional businesses, even those where until recently it seemed like a distant future. Today, every entrepreneur is aware that there is no business without technology, and those who use it quickly and effectively will win," claims Tomasz Gołębiewski, quoted in the release.

"During revolutionary changes, a transfer of value usually occurs from those who do not perceive them to those who create them. Therefore, we decided to join forces and invest in ventures that best respond to these needs. Thanks to this, we want to have an influence on the development of these trends," adds Marian Owerko.

The funds will be managed by separate teams. Smartlink Venture has been placed in the hands of Marcin Mol and Leszek Skowron. Investors place high hopes in their over 10 years of experience in the VC market. The Smartlink Evolution fund, on the other hand, will be managed by Tomasz Danis, who possesses equally extensive experience in investing in technology companies.

The Venture Capital Market is Professionalizing

Aleksander Mokrzycki Vice President of PFR Ventures

For a year now, we have been observing significant development of Polish funds based on private capital. Some of the people associated with these initiatives previously gained experience in investing in start-ups with the support of public money. This was the case, among others, with Marian Owerko and Rafał Brzoska (associated with bValue funded by NCBR and PFR Ventures) and Tomasz Domogała (TDJ Pitango/NCBR). Starting individual activity is proof of progressive professionalization. Diversification among Polish funds and the emergence of new entities also indicate the high potential of projects that more and more investors want to fight for. Representatives of large Polish companies want to be close to innovation. Investments within a VC fund give them direct access to the modern technology market, and allow the best to multiply capital. Certainly, people who would now like to develop a new business, e.g., in the cosmetics, packaging, or logistics industry, will appreciate the experience and contacts that entrepreneurs from the newly emerging fund will bring.