White Star Capital 1

Poland Venture
Capital Landscape
From the eyes of an
international investor

H1 2021
 White Star Capital
Eric Martineau-Fortin
Managing Partner
Nick Stocks
General Partner (London)
Karolina Mrozkova
Vice President (New York)
“The CEE region is quickly
fostering and honing all the key
aspects that a successful
ecosystem must prioritise, in
terms of talent and innovative
companies, and attracting
increasing volumes of
investment.”
2
“In this deep-dive of the Polish ecosystem, we aim to share
our passion and enthusiasm for the Polish venture capital
ecosystem. Over the last 3 years, we have been very active in the
Polish ecosystem, recognising the massive amount of potential
in the region.
Since it’s founding in 2007, White Star Capital, has been
investing in Europe, leading rounds in great companies like
Clark, Tier Mobility, Meero and Butternut Box. With our
investments in Packhelp and Uncapped, we’ve seen first hand
the great potential that Poland has to offer as a future
powerhouse in Europe.
In this report, we share why we’re excited about Poland and
why we want to continue our activity in the region. The
economic tailwinds are strong, a real thirst for entrepreneurship is
growing, and we at White Star Capital are keen to be a part of
this.
“We believe Poland is now the entrepreneurial hub of Eastern
Europe, with all the right characteristics to hold on to this top
spot.
Widely renowned as the having the best source of tech talent in
Europe, a government focused on supporting this talent, and
with many of the world’s leading technology companies
having offices there, there has never been a better time to be
an entrepreneur in Poland.
On a global scale however, Poland is still a young ecosystem,
and to make it to the next level, funding for the Polish talent pool
must continue to mature with the same pace. The explosion in
seed investing over the past few years means that there is a
pipeline for Series A and B investments developing, and to
keep Poland on the track its currently on, it is important that these
start-ups have all the resources that they need to build
Poland’s first unicorns.
Alex Wilson Blanche Ajarrista
Vice President (London) Associate (London)
“Once held by Russia, Poland “Start-up culture is booming in
now holds the top spot for tech Poland. Entrepreneurship is not
in the CEE region. With the just a trend here, it’s a viable
Polish government’s focus on means to build a career, and it
tech, and the level of corporate is only a matter of time before
activity and talent coming from Poland produces its first VC-
the region, there is so much backed unicorn.”
more that can be achieved!”
White Star Capital 3

A Word from PFR

The Polish tech ecosystem has been growing rapidly in the last few years, and the
pace of venture capital investment is accelerating even further. Every year we see
dozens of new, innovative start-ups spawning and raising funds in early-stage
rounds. However, as a young market, we have also seen a gap in the late-stage
funding that is required to build Poland’s first unicorns.

This gap is becoming increasingly filled with capital from international venture
capital firms that have discovered potential in the region and can see the value of
Polish entrepreneurs and tech talent. The numbers speak for themselves – in 2020
alone, Polish start-ups have raised €477m. This is more than in the five previous
years combined. This growth is fueled both by an increasing number of pre-seed
and seed investments, as well as a handful of late-stage rounds, each valued more
than €50m.

PFR Ventures, as a development financial institution, uses its own resources as

well as European Union capital to support innovative Polish enterprises at various
stages of development, through investments in VC and PE funds. We have a
portfolio of more than 50 funds that have made over 350 investments. In previous
years, those were mainly pre-seed and seed investments. But as our ecosystem
matures, we are also increasingly supporting Polish start-ups and scale-ups from
Series A onwards.

The Polish ecosystem is still very young, but we have just entered a second phase.
The market is still growing rapidly but at the same time it is getting more mature,
bringing the risk levels down. We are confident that this is a fertile environment for
many unicorns to emerge in the near future. We are proud and happy to be part of
this ecosystem.

We are also happy to join White Star Capital as an investor, and we are even more
delighted that the management team has already invested into the Polish
ecosystem with companies such as Packhelp and Uncapped. We are convinced that
White Star will be an important player in the fast growing Polish VC scene and, with
its highest standards, will have a material impact on the whole Polish ecosystem.

Bartłomiej Samsonowicz
Investment Director, PFR
Ventures
White Star Capital 4

Contents

Section 1 Poland Venture Capital: An Overview 5

Section 2 Ecosystem 15

Section 3 View From Our Founders 31

Section 4 Partnering with White Star Capital 36

White Star Capital

Poland Venture
Capital: An Overview
 Poland Venture Capital: An
White Star Capital Overview
6

Poland Highlights

7th 3rd
largest economy in globally for quality of
Europe1 developers2

4% $1.6bn
Highest average yoy of capital invested since
GDP growth from 2007- 20154
2018 in the EU 3

2x 97
increase in R&D active VC funds in
expenditure as % of 20214
GDP over last decade 5

1st 7th
in Europe for ratio of friendliest country in the
female founders 6 World for start-ups7

1) ‘How Poland’s “golden age” of economic growth is going unreported,’ Euronews.com. 5) Eurostat.
2) The Golden Book of Venture Capital 2019, start-up Poland. After China & Russia. 6) The Golden Book of Venture Capital 2019, start-up Poland.
3) Eurostat. 7) ‘Most start-up friendly countries in the world,’ CEOWorld.
4) Pitchbook.
 Poland Venture Capital: An
White Star Capital Overview
7

VC funding in Poland has grown at a rapid pace,

driven by growing government initiatives and
international investor interest
The majority of activity has been in the early stage, with deal volume
growing c.20% yoy…

Deal Volume
229
Early Stage VC
200 30
Later Stage VC 189
181
19
14
12 153
131 10 137
124
7 12 21
99
199
169 175 181
67
59 143
117 119 116
34 95
59 57
29

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD2021

…however over the years, there has been several atypical later stage
deals that have taken up a significant portion of capital invested
560
Deal Value ($m)
Booksy $70m Series C
Brainly $81m Series D Tylko $26m
ICEYE $96m Series C Series C

Booksy $29m Series A2

Brainly $30m Series C
302
Cream Finance $22m Series A

Brainly $18m Series B 233

216
eTravel $18m round Eobuwie
$133m
ZnanyLekarz $20m Series C Series A
137 Grupa Pracuj 313
Busfor $20m Series B $95m Series A ZnanyLekarz
88 $90m Series E
75
48 57 142
32 99
15 88 85
4 60

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD2021
Source: Pitchbook
Note: Early stage corresponds to Seed, Series A, and Series B. Later-stage corresponds to Series C+.
 Poland Venture Capital: An
White Star Capital Overview
8

Driving this early-stage activity are seed rounds

specifically, but over the last 5 years, Series A
deals are featuring more and more
The increasing share of Series A rounds since 2015 is a major indicator
of the potential for the Polish ecosystem

Share of Deal Volume by Deal Stage Type (2020)

Nether- Ger- Scand-

Spain France lands many Poland US UK inavia
Seed
share 43% 45% 58% 53% 69% 24% 63% 61%
of deals

(42)% (27)% (15)% (9)% (20)% (9)% (12)% (22)%

Series
A share 42% 32% 27% 26% 25% 24% 23% 18%
of deals

183% 26% 33% 11% 450% 6% 31% 33%

Series
B share 11% 15% 10% 13% 4% 18% 8% 16%
of deals

(3)% 59% 62% 13% (8)% (11)% 65% 172%

Series
C+ 4% 8% 4% 8% 2% 34% 6% 5%
share
of deals
NM 102% (10)% 15% (54)% 11% 10% 128%

Growth in share of
+[xx]%
deals from 15-20

Source: Pitchbook
 Poland Venture Capital: An
White Star Capital Overview
9

Despite the pandemic, Poland had a record

breaking year for seed funding with capital
invested increasing by 35% in 2020
Seed funding in 2021 has accelerated further despite COVID related
lockdowns

Deal Value ($m) and Deal Volume 112

106
94

69
62 65
53 58 55
51 49
45
40 42
41
36
23 30
27 27
21
16
13

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD2021

Deal Value Deal Volume

Selected Seed Rounds

$8.6m $6.3m $6.0m $5.0m

Feb-20 Jun-20 Jan-16 May-19
Warsaw Warsaw Szczecin Krakow
Robotics Fintech Gaming HR Tech

$3.5m $3.2m $3.1m $2.4m

Nov-16 Jun-19 Mar-19 May-18
Gdansk Warsaw Wroclaw Warsaw
Data & AI HR Tech eCommerce eCommerce

Source: Pitchbook
2020 & 2021 Deals
 Poland Venture Capital: An
White Star Capital Overview
10

2020 was a record year as momentum within

the Series A landscape grows
This momentum continues in 2021, with H1-21 deal values breaking last
year’s record funding amount

Deal Value ($m) and Deal Volume 188

28
26 26
134
21
18 18 Eobuwie
15 $133m
Grupa Pracuj 76 Series A
11 $95m Series A
62
6 6
4 44
Booksy
1 30
$29m
16 18 16 Series A2
2 0 2

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD2021

Deal Value Deal Volume

Top Series A Rounds

$133.0m $95.0m $28.7m $14.6m

Jul-21 Aug-17 Sep-19 Jun-21
Zielona Gora Warsaw San Francisco Szczecin
eCommerce Future of Work SaaS SaaS

$10.3m $9.9m $9.0m $6.5m

Jul-20 Apr-17 Oct-13 Dec-20
Wroclaw Warsaw Krakow Warsaw
HealthTech eCommerce EdTech HealthTech

Source: Pitchbook
2020 & 2021 Deals
 Poland Venture Capital: An
White Star Capital Overview
11

While Series B+ activity remains nascent, we

expect it to grow as the pipeline for Seed and
Series A start-ups continues to mature
Brainly is a prime example of how the Polish ecosystem can foster market
leaders, having raised $150m to date from Polish and foreign VCs
Deal Value ($m) and Deal Volume
180

Booksy $70m Series C

Brainly $81m Series D

Znanylekarz $90m Series E
Brainly $30m Series C ICEYE $96m Series C
11
ICEYE $33m Series B
Brainly $18m Series B 7 18 9
Busfor $20m Series B
42 4
3 3 24
57
4 4 43
28
3 2 2

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD2021

Deal Value Deal Volume

Top Series B rounds

$22.4m $20m $18.1m

Mar-17 Oct-16 May-16
Warsaw Katowice Krakow
Fintech Mobility EdTech

$14m (B1) $11.2m $8.0m

Oct-17 May-15 Dec-18
Krakow Warsaw Warsaw
EdTech HealthTech eCommerce

Source: Pitchbook
 Poland Venture Capital: An
White Star Capital Overview
12

Series A and B deal sizes are also growing more

rapidly than any other major European ecosystem,
a testament to the pipeline developing
In the coming years, we hope to see Seed deal sizes growing in line with
major ecosystems too

Median Deal Size 17-20 CAGR

$2.7m Series C 16% $54.5m

Series C 49%

Series B 40% $2.5m Series B 10% $25.0m

USA
Poland

Series A 14% $1.1m Series A 4% $8.5m

Seed 0% $0.3m Seed 3% $2.4m

Series C 17% $31.3m Series C 60% $65.0m

Germany

Series B 23% $21.3m Series B 31% $19.7m

UK

Series A 10% $7.1m Series A 12% $9.2m

Seed 12% $1.1m Seed 5% $2.2m

Series C 25% $54.9m Series C 95% $44.6m

Scandinavia

Series B 19% $17.7m Series B 5% $14.4m

France

Series A (1)% $5.6m Series A (6)% $5.2m

Seed 15% $1.6m Seed 24% $1.2m

Source: Pitchbook
$[x]m Median deal size (2020)
 Poland Venture Capital: An
White Star Capital Overview
13

Poland has a strong domestic exit environment

supported by significant interest from international
acquirers
Poland is home to the leading stock exchange in emerging Europe, with
Allegro’s recent $12bn IPO a key highlight

Selected IPOs

$12bn $117m $109m

Oct-20 Jan-21 Apr-18
eCommerce eCommerce Biotech

$73m $42m $24m

Jul-18 Jun-17 Mar-21
SaaS HealthTech Biotech

Almost half of all VC-backed companies that have been acquired over
the last decade were acquired by foreign businesses

Selected M&A

- - - -
Feb-19 Mar-19 Apr-19 Jul-19
Acq. By SumUp Acq. By Miinto Acq. By Fargotex Acq. By Medicover
eCommerce eCommerce eCommerce Wellness

- - - -
Sep-19 Oct-19 Feb-19 May-20
Acq. By BlaBlaCar Acq. By Everli Acq. By Allegro Acq. By Telehorse
Mobility eCommerce Fintech HealthTech

- - - $43m
Sep-20 Dec-20 Jan-21 Feb-21
Acq. By Chiesi Acq. By Booksy Acq. By Przelewy24 Acq. By Meliuz
Pharmaceuticals SaaS Fintech eCommerce

Source: Pitchbook
 Poland Venture Capital: An
White Star Capital Overview
14

Poland has many of the indicators to be a future

powerhouse in the European ecosystem
Poland is where the US was 10 years ago, and where more mature
European markets were 3-5 years ago

Total Venture Capital Funding in 2020 as a % of GDP1

0.8%

0.6%

0.5%

0.3%

0.2%
0.1%

0.05%

Poland US UK Scandinavia France Germany Spain

Based on Total VC Funding as a % of GDP, Poland in 2020 is equivalent to:

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

US UK France Germany Spain

10yrs ago 8yrs ago 5yrs ago 4yrs ago 3yrs ago

Scandinavia
5yrs ago

Mature ecosystem Maturing ecosystem

1) World Bank GDP Indicators, Pitchbook (total in country VC funding since 2010).
2) European Commission.
White Star Capital

Ecosystem
 Ecosystem
White Star Capital

The White Star Capital model for a venture capital

ecosystem

At White Star Capital, we believe there are 4 key constituents to the

start-up ecosystem

1. Market 2. Talent

Naturally occurring, underlying An abundance of strong founders

aspects of the landscape and employees, and the underlying
initiatives supporting them
Key Characteristics
Key Characteristics
• Technological adoption
• Education
• Digital penetration
• Major corporates
• Population size and growth
• Exit cycles
• Tailwinds or headwinds • Diversity

3. Government 4. Capital

Controllable, human-led Financing available in the

aspects of the landscape market

Key Characteristics Key Characteristics

• Tax incentives • Angel investors
• Government-led incubators • Presence of funds across
and hubs sectors and stages
• Regulation • Access to international
funding
 Ecosystem: Market
White Star Capital 17

Poland is at the centre of Europe, with a large

population and a strong developer ecosystem

38m 286m
8th most populated Population within a
country in Europe1 1,000km radius of Poland2

#1 68%
In total venture capital 10-year growth rate of
invested in CEE region disposable income 4
over the last 10 years 3

44.6hrs/week 150%
Polish developers work Level of mobile
more hours than any penetration in Poland 6
other country5

2m+ 25%
Immigrant arrivals since of developers in CEE
2014, highest inflow for region work in Poland 8
any EU country 7
1) United Nations Data. 5) ‘Developer Survey Results 2019,’ StackOverflow.
2) Map Tools. 6) ‘E-commerce Facts and Figures in Poland,’ The Paypers.
3) Pitchbook. 7) ‘How Poland’s Golden Age of Economic Growth is Going Unreported,’ Euronews.
4) OECD Data. 8) ‘CEE Developer Landscape 2017,’ Infoshare.
 Ecosystem: Talent
White Star Capital 18

Poland has the largest pool of developers in CEE, and

this highly skilled workforce is attracting top tech start-
ups from around the world1
Why do foreign start-ups choose Poland?
330 ✓
✓
Top English skills
Large stock of highly qualified engineers
Foreign VC-backed
✓ Top class education
companies with offices ✓ High security standards
in Poland ✓ Lower labour costs

Where is their HQ? What do they focus on?

US 5%
5% SaaS
24% 29% UK
11% 32% Big Data & AI
Nordics Manufacturing & Industrials
3% DACH Fintech & Insurtech
6% 14% Marketing & AdTech
Ireland
11% Logistics
18% Asia 18%
9% 15% Other
Other

Warsaw
65k professional developers and IT experts
3k ICT graduates annually
Krakow
70k professional developers and IT experts
1.8k ICT graduates annually
Wroclaw
48k professional developers and IT experts
1.4k ICT graduates annually
Poznan
26k professional developers and IT experts
950 ICT graduates annually
Source: ‘Software development in Poland: major IT hubs, developers, and more,’ N-iX, Pitchbook
 Ecosystem: Talent
White Star Capital 19

Poland’s excess of tech talent has meant that many

corporates have also opened offices in the region,
fuelling further innovation

Warsaw Major Corporates Universities Innovation Hubs Select Investors

Major Corporates Universities Innovation Hubs Select Investors

Gdansk

Krakow Major Corporates Universities Innovation Hubs Select Investors

Wroclaw Major Corporates Universities Innovation Hubs Select Investors

Poznan Major Corporates Universities Innovation Hubs Select Investors

 Ecosystem: Talent
White Star Capital 20

Many of Poland’s most successful founders are

educated at Poland’s leading universities

There are more than 100 universities in Poland, with Poland holding 4th
place in Europe in terms of the number of people enrolled in higher
education, and c.140k graduates in engineering courses1

Selected Founders from Polish Universities

Wojciech Sadowski Janusz Bober

CEO and Co-Founder Chairman and Founder

Education Education
BSc & MSc Management, MSc Computer Science,
Warsaw School of Economics University of Warsaw
MBA, Oxford Brookes University

Hanna Kokczyńska Marcin Grzymkowski

CEO and Co-Founder CEO and Founder

Education Education
Industrial and Product Design, University of Commerce and Law
Warsaw Academy of Fine Arts in Warsaw

Michał Borkowski Maciej Artur Noga

CEO and Co-Founder CEO and Co-Founder

Education Education
Bachelor of Corporate Finance, MSc Marketing & Marketing Strat,
Warsaw School of Economics Warsaw School of Economics

Ivan Klimek, PhD Dorota Rymaszewska

CEO and Co-Founder CEO and Co-Founder

Education
Education Polytechnic, Silesian University
PhD & MSc in Computer Science, of Technology
Technical University of Kosice Business Psychology, Kozminski
University

Mariusz Gralewski Lukasz Haluch

CEO and Co-Founder CEO and Co-Founder

Education Education
BSc Computer Science, Masters, University of
Warsaw University of Technology Information Technology and
Management in Rzeszow

1) ‘Poland – The Engineering and Technology Hotspot to Lookout For,’ Zinnov.

 Ecosystem: Talent
White Star Capital 21

Poland leads Europe for the number of female

entrepreneurs, and is the fifth best in the world1

40% 30%
of business leadership of businesses are owned
positions occupied by by women1
women1

6th 8th
smallest gender pay Place in Economist’s Glass-
gap in the EU of 8.5%2 Ceiling Index ranking3
Selected Polish Female Founders

Dorota Rymaszewska Kinga Stanislawska

CEO and Co-Founder Managing Partner & Co-Founder

Agata Frankiewicz Marian Keltika

CEO and Co-Founder CFO & Co-Founder

Marta Kalenska- Kaja Rybicka

Jaskiewicz CBO and Co-Founder
Co-Founder

Aleksandra M. Jagoda Pieścicka

Pedraszewska CEO and Founder
COO and Co-Founder

1) The Mastercard Index of Women Entrepreneurs – 2020 Report.

2) ‘Gender Pay Gap Statistics,’ Eurostat.
3) The Economist’s Glass Ceiling Index.
 Ecosystem: Government
White Star Capital 22

Poland’s state-owned investment fund has been

supporting the start-up ecosystem over the last 5 years
through financial and regulatory support

Who are PFR and what is Start In Poland?

• PFR is a state-owned financial group headquartered in Warsaw, which finances

the development of businesses and local communities in Poland
• Start in Poland is a program developed to support the development of start-ups in
Poland, including financial and regulatory support

How does it help Polish businesses?

• Instruments for every stage of development (from ideation to internationalisation)

• Improvement of the domestic high risk investment market
• One point of contact for start-ups and SMEs
• Set of legal acts facilitating and supporting research & innovative business
activities

€900m 55+ 400+

Indirect portfolio
In AUM Portfolio funds
companies
What is PFR Ventures?

• PFR Ventures is a fund of funds manager that invests in venture capital and
private equity funds with the aim to deliver funding to Polish innovative
companies across different growth stages

PFR-backed funds

Source: PFR Ventures

 Ecosystem: Government
White Star Capital 23

Poland’s NCBR further strengthens the ecosystem by

funding innovative companies through its various
programs
What is the NCBR?

• The National Center for Research and Development (NCBR) is a

Polish government agency created to support the development of
innovation in Poland, offering assistance at all stages, with resources to
entrepreneurs, originators, universities, and investors

NCBR CVC

• Managed by PFR Ventures and BGK TFI €200m

• Creating 6-9 CVC funds, 50/50 NCBR & corporate investors NBCR CVC AUM

NCBR VC

• Managed by a consortium of VC3.0 and Fin-Crea TFI €250m

• Objective to invest in tech-enabled SMEs NBCR VC AUM

NCBR Investment Fund (“NIF”)

• Co-investment fund supporting the development of Polish €130m

SMEs commercialising R&D NIF AUM

• Commercial VC fund anaged by TDJ and Pitango VC Fund

• Objective to invest in innovative tech-enabled Polish €50m
companies with global development professional TDJ PITANGO AUM

Other NCBR programmes supporting innovative Polish businesses

• EU grants for innovation: grants aimed at supporting entrepreneurs innovations

financed by the EU
• PCP for EU Green Deal R&D: pre-commercial procurement (PCP) which consists in
ordering R&D works that result in the creation of a product or technology
• National strategic programs: high budget program to advance the state’s scientific
and innovation policy
• National defence security program: financing projects that promise the greatest
increase in national security
• International cooperation: financing international projects with the participation of
Polish beneficiaries

Source: Start In Poland, NCBR

 Ecosystem: Government
White Star Capital 24

Start-up Poland is a think-tank to raise awareness of the

economic potential of start-ups and represent them in
regulatory processes
What is Start-up Poland’s purpose?

• Building awareness on the potential of Polish start-ups amongst decision makers,

politicians, media and local as well as global investors

How does it help Polish businesses?

• Identify and eliminate systemic barriers in Polish legislation limiting rapid growth
and development of start-ups
• Educating global investors on the Polish ecosystem, thereby facilitating
investments in the region
• Supporting growth of entrepreneurship by accelerating development of local
financing infrastructures

Achievements to Date

€2.6bn
Value of investors they
3000+
Profiles compiled on
100+
Key engagements with
500+
Published pages of the
educated on Poland Polish start-ups EU and Polish legislators Polish start-up ecosystem

Created the Chief Technology Worked on The Digital Single

Vetoed the adoption of the
Officer position in the Polish Market policy, supporting
Copyright Directive
administration €415bn market

Distribution of their financial backers Sample Reports

Other
Contributers
12%
Financial Google
Organisations 25%
14%

Other
Corporates
11%
Government
Organisations
38%

Source: Start-up Poland

 Ecosystem: Capital
White Star Capital 25

Poland has its own community of high quality angel

investors supporting start-ups from the very earliest of
stages
An increasing number of founders are now dedicating time and capital to
supporting the next generation of Polish founders and start-ups

Daniel Lewczuk Maciej Noga

Kasia Wierzbowska Michał Borkowski

Marek Rusiecki Mariusz Gralewski

Maciej Filipkowski Alina Prawdzik

VC fund that co-invests with 300+ Business Angels - €3.3m AuM

Founded by the Women’s Entrepreneurial Network

Professional business angel network led by Robert Lugowski

Club of about 50 angels investing between €20-450k
 Ecosystem: Capital
White Star Capital 26

There are now a multitude of seed funds now operating

in Poland driving much of the VC activity to date

Of the 80 local funds in Poland, 43% are Seed funds, 4 of which were
launched in the last year1

Warsaw Warsaw Warsaw

Founded 2017 Founded 2012 Founded 2019

Selected Investments Selected Investments Selected Investments

Krakow Warsaw Warsaw

Founded 2010 Founded 2017 Founded 2018

Selected Investments Selected Investments Selected Investments

Krakow Warsaw Gdansk

Founded 2018 Founded 2015 Founded 2008

Selected Investments Selected Investments Selected Investments

1) Pitchbook.
 Ecosystem: Capital
White Star Capital 27

Foreign VCs are also playing a critical role,

investing more than $920m since 2015…

The percentage of start-ups financed by foreign venture capital or

accelerators sits at 3-5%1

Total raised by Polish start-ups with foreign investors since 20152

5%

United States
United Kingdom

$920m
27% 35% Germany
Netherlands
France
Other EU
3%
Asia
4% 9% 17%

Early stage Early stage Early stage

Generalist SaaS Fintech & Insurtech

Early stage Pre-seed, Seed, Early Stage Stage Agnostic

Generalist Generalist Generalist

Other Foreign Investors with a Presence in Poland

1) ‘Polish start-ups 2020 COVID Edition Report,’ start-up Poland.

2) Pitchbook.
 Ecosystem: Capital
White Star Capital 28

…and a strong pipeline for Series A and B rounds

is developing

The later funding landscape will need to catch-up to ensure this

ecosystem can properly mature

% of Seed Stage Start-ups that Raise $5m, $10m and $25m1

17%17% 17%16%

12% 11%
9% 9% 10%
7% 8%
7%
5% 5% 6%
3% 4% 4% 3% 4% 3%
2% 1% 2%

Poland United States United France Germany Netherlands Spain Scandinavia

Kingdom

$5m - 10m $10m - 25m $25m+

Selected Later Stage Funds

Warsaw Warsaw Warsaw

Founded 2008 Founded 2019 Founded 2007

Selected Investments Selected Investments Selected Investments

Poznan Warsaw UK / Poland

Founded 2008 Founded 2014 Founded 2015

Selected Investments Selected Investments Selected Investments

1) Pitchbook. Based on median share of seed stage rounds from 1-Jan-2015 to 31-Dec-2020, that go on to raise a total funding amount of
$5m+, $10m+ and $25m+
 Ecosystem: Capital
White Star Capital 29

Corporates are also dedicating capital to start-ups too in

order to foster innovation within their own sectors

Despite being a fairly recent development in Poland, CVCs have already

deployed c.$60m in 110+ companies1

CVC Sector LP Sample Investments

HR +
Pracuj Group
EdTech

Fintech mBank

Fintech Bank Polski

Energy PGE Capital Group

Energy PGNiG Group

Fintech Alior Bank

Nouryon, Bühler
Food /
Group, Royal Cosun,
Energy
Akzo Nobel

SpeedUp Group, PFR

Generalist
Ventures

Tauron Polska
Energy Energia, PFR
Ventures

Source: ‘Polish and CEE tech ecosystem outlook,’ Dealroom & PFR.
1) Pitchbook.
 Ecosystem: Capital
White Star Capital 30

Despite the impact on businesses globally, Polish

start-ups proved resilient to COVID-19 over 2020

Resilience came through strong ecommerce and healthcare sectors -

online retail sales grew 25% YoY,1 while healthcare businesses received
c. €40m of overall funding during 20202

€478m 25%
Capital invested in Polish of funding went to healthcare and
companies during 20203 ecommerce businesses in 20205

2.5x
Rate at which Polish digital
economy grew in H1-20
compared to previous 2 years4

Top Polish Funding Rounds in 2020

$97m $81m $70m

Series C Series D Series C
Sep-20 Dec-20 Nov-20

1) ‘Ecommerce in Poland breaks records,’ Ecommerce News. 4) ‘Poland digital economy surges after COVID-19 outbreak: report,’ Poland In.
2) ‘2020 was a record year for VC investment in Poland,’ Sifted. 5) Polish VC market outlook 2020,’ PFR Ventures & Inovo.
3) ‘Pitchbook.
White Star Capital 31

View From Our

Founders
 View From Our Founders
White Star Capital

In a conversation with Packhelp’s co-founder and

CEO Wojciech Sadowski
“We were starting to see an increasing
amount of European capital coming into
the country and it was being deployed
by ex-entrepreneurs who had built
successful businesses before”
Could you tell us a bit about yourself and what you were up to prior to founding Packhelp?
I studied at the Warsaw School of Economics before working at one of the largest digital marketing
agencies in Poland. I then founded a software house and digital marketing agency with my friends
before Packhelp.

What motivated you to launch Packhelp?

Well myself and my co-founders were very well aware of the packaging industry given our
backgrounds and having worked with online stores, and we were very passionate about e-Commerce
in general. We had seen the dominance of Amazon in the US and the UK, but also the huge Direct-to-
Consumer (D2C) scene that was developing and we had built dozens of these online shop fronts for
customers on WooCommerce and Magento.

During this time, we started to notice how difficult it was for these smaller D2C shops to get access to
packaging as manufacturers needed large minimum orders to make it worth their while, and
customised offerings and customer service wasn’t great. So we launched Packhelp!

What was the funding landscape like at that moment in time?

It was slowly growing as there were a few other things happening at this time. We were starting to see
an increasing amount of European capital coming into the country and it was being deployed by ex-
entrepreneurs who had built successful businesses before and so the capital was also coming with a
great deal of experience. Because of this, it was becoming more popular to start a business as
bootstrapping wasn’t the only option. There were also some real success stories making headlines
such as Docplanner and Estimo and so it was getting more popular to launch a start-up.

Is there anything about being based in Poland that has given you an advantage vs
competitors?
The impact that Amazon and Ebay had on Western Europe wasn’t really happening in CEE. CEE was
not a focus for Amazon, and Ebay was not successful in Poland. Allegro became the main player here,
but what this meant was that e-Commerce was far more fragmented with many more smaller online
marketplaces (such as Showroom and Mustache) or direct to consumer brands. It was a great place
for us to launch and try out our proposition. You also had the talent. Great developers that had worked
at major US start-ups were returning to the region, and they were also cheaper. Everyone speaks
English here too which was a major plus.

There was also a rich infrastructure for packaging and lots of Western companies utilised the industrial
elements of Poland. Poland has always been almost like a factory for Europe. If you weren’t
manufacturing in Asia, then you were doing it in CEE, and so this was a huge benefit for Packhelp.

Packhelp currently serves customers throughout Europe, when did you start and why?
As mentioned, we were seeing the D2C trend all over the world, and so we knew if it could work in
Poland, it could work everywhere else. As we did our research, we learnt that we were perfectly
positioned in Europe. There was low competition, and our software component and access to talent
gave us a real price arbitrage so we could be very competitive with pricing. We also had a great deal
of experience in digital marketing so we were able to get our first customers in Europe very easily.
 View From Our Founders
White Star Capital

In a conversation with Packhelp’s co-founder and

CEO Wojciech Sadowski
“We need to continue to capitalise
on the exits, and pump this money
back into the ecosystem… to really
take things to the next level.”
Looking back to your first fundraise, how do you think the funding environment has changed?
I mentioned before that there was more capital coming into Europe and there were some great start-
ups raising, but raising our first seed round from Speedinvest was still very tough. There were still few
VCs in general, and European VCs weren’t yet visiting Poland except for a few ie. Pointnine as we still
weren’t a popular country for tech investors. But everything changed after UI Path and it pushed
people to want to consider CEE as a great start-up ecosystem.

What do you think the ecosystem still needs in order to reach the scale of other more mature
regions?
Firstly I would say commercial knowledge and due diligence. 5 years ago, it was very hard to find
someone who really understood what the key KPIs were. New seed stage founders today who are
looking for funding, most of them understand everything around unit economics or traction. The
dynamics of the knowledge sharing element in the ecosystem is increasing exponentially and this will
be critical.

Secondly, the risk vs data gap still needs work. Bootstrapping is not as easy as it once was before. We
need to continue to capitalise on the exits, and pump this money back into the ecosystem. Really, we
need 1 or 2 more loops of really solid founders building great businesses, exiting and reinvesting into
the region to really take things to the next level.

What advice would you give to any Polish founders starting out that you wish you had when
you were launching Packhelp?
Commercially, try to find customers beyond Poland as quickly as you can. It’s so easy to do from
Poland giving where we’re located and the talent that’s available as so many people speak different
languages here, it opens up your TAM and makes your proposition more attractive overall.

I think we also need to continue to work hard in building the ecosystem and we need to get more
engaged. Not just with events, but we should be trying to exchange knowledge better. Many of us are
networking a lot with foreign entrepreneurs, we should be pushing this knowledge back into the
ecosystem. Try to find time for more 1 on 1s, as in the long run, this will reap so many benefits.

Any predictions for Poland that you would like to share?

Amazon will change a lot in Poland, they’re entering the region and it is creating huge waves across
the country. It will create a huge distribution channel to sell outside of Poland. Allegro is also hiring
people like crazy and investing in start-ups too. Their recent IPO, along with Inpost created a lot of
interest for more foreign capital with PE and hedge funds, and Zabka, the largest convenience store is
rumoured to be IPOing. They have a huge tech component and this will only serve to bring further
interest. For example, the Estonian tech mafia are really pushing into Poland, I have high hopes that
their knowledge and experience will really help the ecosystem

On the other hand, given COVID and the remote working phenomenon, the globalisation of software
teams has meant that it is harder than ever to hire developers as it is right now, what this will mean
going forward I am not sure, but this is a key strength of the region that is definitely changing.
 View From Our Founders
White Star Capital

In a conversation with Uncapped’s co-founder and

CEO Piotr Pisarz

“If Polish founders want to build

global businesses, then they still
need to consider looking abroad as
the ecosystem is still very young
here.”

Could you tell us a bit about yourself and what you were up to prior to founding
Uncapped?

I studied at the Warsaw School of Economics and did my Master’s at LBS (London Business
School).I then joined Citi and then Google as a Financial Analyst before moving into VC
where I spent a few years with Finch Capital and DN Capital investing in fintech.

What motivated you to launch Uncapped?

As a VC, I met 100s of companies that didn’t fit the VC business model but were great
businesses. I was also seeing new ways to fund businesses with very interesting models,
such as Shopify Capital or Clearbanc but these were missing from Europe.

Why did you decide to split the team between the UK and Poland?

At the time, Polish salaries were much cheaper than in the UK and so hiring top quality
engineering talent was easier in Warsaw than it was in London. This is changing though,
because the acceleration to remote work has meant that salaries in Poland have increased
significantly and the cost piece may not be as worth it. I would also say that the talent pool
however in Poland is not that varied, and so getting access to good product and marketing
talent too which is just as important, plus London being the fintech capital, meant that I also
wanted to be in the UK too.

How are you adapting to the remote world then?

We have gone fully remote. I do not think you can do a half way thing, and what’s really
helping us to make it work is that we strive to do as much knowledge sharing on shared
channels on Slack.

Looking back to your first fundraise, how do you think the funding environment has
changed?

It’s slowly improving. If Polish founders want to build global businesses, then they still need
to consider looking abroad as the ecosystem is still very young here.
 View From Our Founders
White Star Capital

In a conversation with Uncapped’s co-founder and

CEO Piotr Pisarz

“We still need more of the

successful ex-entrepreneurs coming
back to invest into the ecosystem.”

What do you think the ecosystem still needs in order to reach the scale of other more
mature regions?

We still need more of the successful ex-entrepreneurs coming back to invest into the
ecosystem. We’re also missing the more recent tech exits. Hopefully in the coming years
there will be more and this will really help the ecosystem

What advice would you give to any Polish founders starting out that you wish you had
when you were launching Packhelp?

Polish founders need to advise other younger companies on fundraising and help to
increase their access to international VCs

Any predictions for Poland that you would like to share?

I’m seeing more and more Polish founders building global companies. Fintech seems to be
particularly interesting, where companies like Ramp.network, Symmetrical or Fiat Republic
have Polish founders but attacking global problems
White Star Capital 36

Partnering with White

Star Capital
White Star Capital 37

Introduction to White Star Capital

A Global Technology Investment Platform
White Star Capital is a global fund investing in Series A and B.
Our footprint is global: we have 8 offices in Guernsey, New York, Paris, London,
Montreal, Toronto, Tokyo and Hong Kong.
We are partnering with exceptional entrepreneurs with global ambitions and leverage
our extensive experience and international network to help them scale their business
internationally. Our investments across the world include Dollar Shave Club, Meero,
Tier Mobility, Parsley Health, Butternut Box and Freshly.

3 Continents I18N Team Track Record

With a presence in We leverage our An ideal balance Our current funds

North America, experience founding between have close to $300m
Western Europe and and scaling entrepreneurial and under management
Asia, we invest in businesses to operational and a portfolio of 25+
early-stage support the experience with core companies
technology internationalisation financial and M&A which have raised
companies with of our start-ups experience over $1bn+
global ambitions

Global Presence and Portfolio

UK and Nordics

Canada
SEA

United States France, Germany, ROE

Physical Hubs Core Hubs

 Partnering with White Star Capital
White Star Capital 38

White Star Capital Portfolio

Companies

Piotr Pisarz Asher Ismail

HQ: London, United Kingdom CEO / Co-founder COO / Co-founder

Company Description

Uncapped is an alternative financial lender catering to internet businesses by providing

rapid and flexible access to capital to finance their growth, which is repaid through a
revenue share agreement

Investment Rationale
Uncapped has first-mover advantage in Europe with their first product focused on digital
advertising financing. This market was worth €55bn in 2018 and has been growing 15% yoy,
representing a massive opportunity and a clear runway to building a sizable loan book
Venture capital and other alternative lending solutions can be expensive, inflexible, slow and
lacking in additional benefits or product specificity. Uncapped is building a platform to
address these financing needs with quicker, more flexible and more efficient financial
products

Founders have a great deal of experience with internet companies and deep knowledge of
the business funding landscape, crucial for customer acquisition and product design

Our Outlook on Similar Fintech Opportunities

Uncapped is part of a new generation of alternative lenders that provide financing and
services to businesses currently underserved by traditional banks

Through our experience in investing in e-commerce/DTC companies (e.g. Dollar Shave

Club, Freshly and Butternut Box), we have become increasingly interested in products that
will prove critical to the underlying infrastructure of online businesses

WSC Invested In Stage Invested Total Raised

2019 Seed $92m

 Partnering With White Star Capital
White Star Capital 39

White Star Capital Portfolio

Companies

Wojciech Sadowski Maciej Zajac

HQ: Warsaw, Poland
CEO / Co-founder CSCO / Co-founder

Company Description
Europe’s leading managed marketplace for custom packaging, connecting SMEs that
require highly customized packaging, with printing and packaging suppliers that need
volume. Users can develop their packaging using an online editing tool and receiving their
orders within 2-21 days.

Investment Rationale

Packaging is a central focus for any brand’s retail strategy and is becoming seen as an
extremely effective marketing channel.

Due to this, the custom packaging market has rapidly grown over the last decade, particularly
among SMEs.

A B2B marketplace puts the consumer at the center of their own design process and
provides transparency around pricing, quantities, etc.

Our Outlook on Similar Industry Tech Opportunities

We are very excited about businesses focusing on the consumerization of enterprise – using
B2B marketplaces to provide a transparent view into an otherwise opaque process.

WSC Invested In Stage Invested Total Raised

2018 Series A $13m