PFR KOFFI FIZ is addressed to teams managing Venture Capital funds which invest in small and medium enterprises at the development or expansion stage.
PFR KOFFI FIZ supports the small and medium enterprise sector in the creation of non-technological innovations – mainly organisational, managerial or marketing. Enterprises which receive financing should be at the development or expansion stage, and their projects in the scope of the above mentioned innovations should demonstrate a significant market or expansion potential.
The financing is granted – through the fund’s resources – by entities specifically selected for the programme, i.e. Financial Intermediaries. The Financial Intermediary’s investments in a single company may constitute a maximum of 50% of the investment value, the remaining part is contributed by a Private Investor.
Innovative small and medium enterprises
Financing of the SME’s innovative projects through supporting enterprises at the development or expansion stage
Internationalisation of enterprises’ activities
Increase of the contribution of venture capital funds, private investors and investment teams in the financing of SME’s innovations
The fund makes contributions to the Financing Intermediary through equity financing. The Intermediary invests in companies through equity or quasi-equity instruments, e.g. in the form of debt convertible to the company's equity.
The catalogue of instruments include:
equity financing: shares
quasi-equity financing: bonds, loans with an option of conversion to shares.
The financing of projects for innovative SMEs is granted by Financial Intermediaries – they are venture capital funds which receive resources from PFR KOFFI FIZ.
The Financial Intermediary may grant two types of financing to a single company:
first investment in a company – a maximum amount constituting the equivalent of EUR 15 million, half of which is the PFR KOFFI FIZ contribution, and the other half the Private Investors’ resources. The upper limit of this amount constitutes 20% of the given Financial Intermediary's capitalisation.
follow-on investment – up to the level of the maximum limits from the above point if they have yet to be reached and provided that additional requirements determined by law are met.
The final beneficiaries of the resources are companies with a registered office or branch in Poland, which plan to develop their activities in Poland or abroad. The Financial Intermediary’s registered office may be located in the EU, EEA or EFTA region.
Due to the cooperation with Financial Intermediaries selected by KOFFI FIZ, young companies may obtain many advantages.
The most important advantages include:
• acquisition of a stable partner,
• flexible possibility to choose the investment form,
• target investment value of up to PLN 3 million,
• relatively long-term cooperation,
• clear and comprehensible rules,
• cooperation with Financial Intermediaries whose teams have undergone a demanding selection process and belong to the group of the best specialists in Poland.
PFR KOFFI FIZ announces the call for the programme and chooses several Financial Intermediaries – venture capital funds. Each Intermediary has its Management Team.
Financial Intermediaries receive from PFR KOFFI FIZ PLN 324 million pool of resources. PFR KOFFI FIZ may grant the Intermediary PLN 20 to 60 million, which constitutes up to 50% of the Intermediary's capitalisation.
The Intermediary is also joined by the Team Managing the Financial Intermediary and Private Investors.
Private investors, PFR KOFFI FIZ and the Management Team sign a trilateral investment agreement.
The Team Managing the Financial Intermediary looks for companies which plan projects in the scope of non-technological innovations (organisational, managerial or marketing innovations). After a positive assessment of the project documentation and the fulfilment of the programme criteria, it grants the company the resources necessary to implement the project.
Companies go through three stages under this process.
Before the completion of the online application, the company must prepare documentation (relevant information is on the KOFFI FIZ website).
The request takes the form of an online application which concerns the specific call for the programme.
The Investment Committee of PFR Ventures Sp. z o.o. assesses the applications and chooses the best potential Financial Intermediaries to analyse in detail concerning their strengths and capacity to fulfil the programme’s assumptions. Before the selection, the Investment Committee always holds a direct meeting with each potential Financial Intermediary.
After the meetings, the Investment Committee chooses the Financial Intermediaries for the given call.
More information about the PFR KOFFI FIZ is available in downloadable documents: