Warsaw, Poland, June 27, 2023—To support technology startups across Central and Eastern Europe (CEE), IFC has invested €15 million in Inovo Fund III SCSp. The investment aims to help innovative companies access the capital and resources they need to develop and scale new technology solutions that can create jobs and boost the region's economy.
With IFC's support, the fund—managed by Inovo Management, a prominent venture capital firm in CEE—will finance early-stage startups promoting the digital transformation of traditional business models. Their software-based solutions can help businesses automate internal tasks, optimize customer outreach, and manage operations more efficiently. The fund will also invest across sectors, including marketplace, e-commerce, telecom, and media.
The combined enterprise value of startups in CEE has quadrupled in the last five years, totaling €190 billion as of 2022. Enterprise software, fintech, and transportation are the leading startup sectors in the region. However, more funding has gone into later-stage companies than early-stage startups.
"IFC's investment in the fund will significantly strengthen our position in the CEE region. This strategic partnership will empower us to deploy capital to the most promising startups in the CEE, driving innovation and fostering economic growth in this dynamic market," said Tomasz Swieboda, Inovo`s Managing Partner. "Together, we are committed to unlocking the untapped potential of the region's entrepreneurial ecosystem and shaping a brighter future for all."
IFC's commitment has helped the fund reach its target size of €105 million, diversify its investor base, and implement its investment strategy at a larger scale. Moreover, IFC will assist the fund manager in developing and implementing an environmental and social management system in line with its performance standards.
"IFC's strategy for the CEE region prioritizes the creation of markets and boosting the competitiveness of the private sector. This investment will help enterprises access much-needed capital, create quality jobs, and drive economic development across the region," said Ary Naïm, IFC's Regional Manager for Central and Southeast Europe. "Supporting entrepreneurship and increasing access to new technology is key to promoting innovation and unlocking new pathways for sustainable economic growth in CEE."
IFC has supported the development of private equity funds in Eastern Europe for over 20 years. To date, IFC has invested over $396 million in 19 private equity funds across CEE.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About Inovo Fund
Inovo is a leading Polish venture capital fund with over €150 million in assets under management, specializing in early-stage investments in technology-driven companies. With a focus on healthcare, education, SaaS, marketplaces, and emerging technologies, Inovo seeks to support innovative startups that possess a competitive technological edge. Leveraging its deep industry expertise and extensive network, Inovo is committed to nurturing the next generation of groundbreaking businesses that will shape the future of their respective sectors and drive economic growth in the CEE region. For more information, visit www.inovo.vc.
