Wednesday, June 15, 2016

3 billion zł from the EU funds for the development of startups in Poland – Polish Radio

This is provided, presented on Wednesday in Krakow, the “Start in Poland.”


 

Deputy Minister of Development stressed in an interview with PAP that “Start in Poland” is the largest such program in Central and Eastern Europe, also addressed to foreign entities. “A key role in its implementation will play Polish Development Fund, which will help consolidate resources for equity instruments targeted to startups. Over the next seven years in Poland has a chance to develop and grow 1.5 thousand. Companies creating high quality innovative technologies, able to compete on foreign markets “- noted.

 
 

The financial part of the program – as explained deputy head of the MR – will be responsible Polish Development Fund, and the accelerative programs whose purpose is to find interesting business ideas and young companies – Polish Agency for Enterprise Development. The money for this will come from EU funds, including the “Smart Development”, as well as private funds.

PAP: What is the purpose of the program “Start in Poland?”

Deputy Minister of development Jadwiga Emilewicz: the program is designed for young, creative entrepreneurs and companies. We want to show how important it is not only the enterprise, but also innovation. “Start in Poland” is also aware that there is an alternative to working in a large corporation model career path. We show that setting up their own business allows young Poles to develop and implement interesting projects.

One of the traps defined in the “Plan for Responsible Development,” is the lack of capital, also called. the smart money. And thanks to them you can get interesting products, with a global reach. This lack of capital is evident in both the expenditure on research and development, as well as in all attempts to make the investment. Funds in the “Start In Poland” will allow this type of initiative.

We want to show that we are a country in which not only Poles can develop, but also that we are the place to which it is worth to come from abroad. We want to reverse a trend that has been observed in the last few years – not only stop the most capable person, but also show young, ambitious people from Belarus, Ukraine, Slovakia and the Czech Republic, that for them is also a place here and the means. you have to note that in the framework of international cooperation possibilities are always bigger.

PAP: Where will the money came from for this program?

JE: “start in Poland” is a program umbrella, which will include many institutions and activities. the main part of it is the platform PFR Venture, located in the Polish development Fund. It is the biggest in the region of this type of platform.

Nearly 3 billion zł from the EU funds will go to the development of start-ups that use to locate your business in Poland. the money for the program will also be available, among others, the Polish Agency for Enterprise Development. Financial instruments focused in one place, defining clear rules on how to apply for them. Over the past half year, we talked with startupami, “business angels”, venture funds, to change the rules in their favor access to EU funds. The criteria for access to the platform PFR venture that will supply support capital-substantive, will be based on market principles.

We would like to get those 3 billion zł public funds have been multiplied by at least the same amount of funds from the money private. Well, efficiently developing economies do not save everything earned only investing – sometimes in risky ventures. We would like to arm entrepreneurs instruments debilitating little risk and thus encourage them to invest.

Today we announce a competition for the accelerator program “Scale Up”, which will be implemented by PARP. Its purpose is to find interesting bands, new entrepreneurs, who have attractive ideas. As a result, startups, new technology companies will be able to develop in cooperation with large enterprises, including state-owned companies. They receive not only financial support, but also access to high-class mentors, resources, competence, infrastructure, new clients and markets. The competition will run from 15 July to 15 September., And its budget will amount to 35 mln zł.

PAP: Is the State Treasury companies are interested in this project?

JE: The desire to be a partner in this program today declared a number of companies of the Treasury. They are ready for it to sign the preliminary agreement of intent. These include, among others, energy companies – Energa, Enea, PGE, fuel – Orlen, Lotos Group and Azoty, and thus Polish champions. They will have to find their new competitive advantages. Perhaps to find new niches, open new production lines. There are different ways to develop. One of them is certainly difficult to meet David and Goliath. We would like to make big state-owned companies, private companies cooperated with small technology companies. Until now, the door to large corporations were quite tightly closed before the young entrepreneur, who often had described as a perfect business plan. Therefore, we show that we have a platform PFR Venture, which are funds available. If the state-owned company wants to create a smart investment fund venture capital, it can lower your risk somewhat by reaching out for public capital, which is located on the platform. The platform will be available for both large enterprises, State-owned companies and private companies. Through this fund we want to kick-start innovation among our champions.

PAP: In the United States, two out of ten startups successful market. Are not you afraid that in Poland, part of the invested money that could be devoted to development, will be wasted?

J.E .: That is a risk that binds all the development cycle of a startup. We want to minimize. It should be noted that while two out of ten emerging startups successful, the level of capitalization of the two companies, and therefore the return on capital will be refunded and exceeds the investment in these ten companies. Capital returns with a vengeance. This is the logic risky venture. We learn from the Americans and the British, how to minimize risk. It is clear that the first stage of development of the company we pay a lot. Although it is much smaller measures than those which were released in previous years for large projects science and research, and the effects of which are still in the drawers. That’s what the – we hope – to minimize the risk, the quality of the portfolio fund managers. Those who did so in investment funds in Poland and in the world, will be responsible for various portfolios in the platform PFR Venture.

PAP: Is in Poland there is no shortage of experts who can provide advice for startups?

JE: are you sure it is not many. Such funds, operating on a commercial basis, there are several. President of the Polish Development Fund Pawel Borys is not afraid to go after foreign fund managers who have the relevant experience to guarantee the quality of these investments. It may also happen that programs accelerative be downloaded from abroad.

PAP: What will the profiled program “Start in Poland?”

JE: I often say that if we set ourselves a target , instruments that are available for its implementation in various places in Poland, should be aimed in one direction. Only then can we succeed. Therefore we collect funds in one place.

We want to fund portfolio on a platform PFR Venture were directed to the flagship projects. If we look at the key smart specialization, around which is to develop the economy, and which is 20, we think that there are far too many. We do not have so much of that distributed evenly among the twenty key smart specialization, will bring us the result of an innovative economy in the 3-5 years. That’s why we went a slightly different logic. We show flagship projects, for which we can see that today there is a demand in the market. We have a production base in areas of extremely development. To be fully attractive and cost-effective, and technologically product is needed today more support from the public.

The Polish Development Fund will also capitalize on our flagship projects.

PAP: What other problems will solve platform PFR Venture?

JE: PFR Venture solves many of the problems that we understood, analyzing the market. One of them was a barrier to investment, and that means we had at a certain stage of development of business in Poland, and they ended up at a time when capital needs were much greater. We want to raise the limit of investment support to 60 million zł. Until now it was 3 million zł. As a result, such measures may be enough even to place the production line, not only to create a simple application, even with a very large campaign production. Increasing investment limit will implement large projects.

PAP: Thank you.

PAP, abo

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