Inovo, the venture capital fund investing in technology startups across Poland and Central & Eastern European region (CEE), has today announced the final close of its second fund, Inovo II, at €54m. A range of global funds, entrepreneurs and family offices joined the European Investment Fund (EIF) as the cornerstone investor.
Inovo specialises in identifying disruptive tech startups and supporting their development and growth through participation in early-stage, post-traction seed and Series A funding.
The firm said having a diverse range of LPs in the fund will enable portfolio companies to secure global funding as they scale and expand abroad. The new fund has already committed funding to several investment opportunities with leading international investors, including European Bank for Reconstruction and Development (EBRD), Andreessen Horowitz, Hoxton Ventures and Point Nine Capital. Notable investments include: Spacelift, Infermedica, Jutro Medical, AI Clearing, Zowie, Preply, Packhelp, Intiaro, Tidio, Allset and Eyerim.
This fundraise follows the success of Inovo I which generated 3.2x return on investments from a portfolio of 15 high-growth tech startups, most of which have since been sold profitably, two have IPO’d, and three top-performing remain in the portfolio. One of the remaining investments is Booksy, the marketplace for beauty services where Inovo invested at the Seed stage. Now the company is one of the world’s top 100 marketplaces with 10 million app downloads and raised $70m in a Series C round (led by CatRock). Booksy is widely considered to become one of the first unicorn startups (those that have a valuation of $1b) from Poland.
Tomasz Swieboda, managing partner at Inovo said: “The tech ecosystem in the CEE region is growing at an exceptional pace. In Poland the growth rate is 70 percent year-on-year. In 2020, almost €500m in venture capital was deployed to 300 companies, which will almost certainly grow this year. It is our expectation that this decade will produce 10 unicorns and a few decacorns from Poland.”
With the launch of its second fund, Inovo is aiming to cement its reputation as one of the leading early stage investors in Poland and the CEE region, while helping enterprising startups realize their potential, paving the way for later-stage funding from international VCs.