Central and Eastern Europe’s growth-stage companies get boost as Polish and Czech promotional institutions become first contributors to EIF-led Three Seas Initiative Innovation Fund

• National promotional institutions BGK of Poland and NRI of the Czech Republic pledge €20 million each to EIF-led fund for central and eastern European businesses seeking to mobilise some €1 billion of new funding
• EIF to match BGK and NRI contributions to the Three Seas Initiative Innovation Fund
• Fund to invest in private equity, venture capital and private credit funds and support growth-stage companies in Three Seas Initiative countries 

Luxembourg / Warszawa / Praha - 30 September 2024: National promotional institutions BGK of Poland and NRI of the Czech Republic today became the anchoring investors joining an initiative led by the European Investment Fund (EIF) to support growth-stage companies in central and eastern Europe. Czech contribution is funded by the Ministry of Industry and Trade of the Czech Republic.

BGK and NRI committed €20 million each to the Three Seas Initiative (3SI) Innovation Fund, which plans to provide a new source of investments for businesses past the early phase of development that are based in countries between the Baltic, Black and Adriatic seas. The BGK and NRI pledges will trigger matching contributions from the EIF, which is part of the European Investment Bank (EIB) Group. 

Targeting the participation of up to nine countries in the region and a size of €180 million, the 3SI Innovation Fund, with match funding from the EIF, will invest in private equity, venture capital and private credit funds. The overall goal is to mobilize some €1 billion of new funding and bolster business growth in central and eastern Europe, where such funding has been relatively scarce and where meeting market demand is important for sustainable development and maintaining global competitiveness.

“The EIF welcomes BGK and NRI as the first anchoring investors in 3SI Innovation Fund that will pool national resources across the CEE region to drive competitiveness, allow for faster integration of the EU internal market and accelerate climate action. The Fund will provide an important boost for innovation, help create new products and services, as well as new jobs” said Roger Havenith, deputy chief executive of the EIF. “The exceptional vision and leadership of the participating national promotional banks create a cooperation model that will benefit the region long after the 3SI Innovation Fund fulfils its mission. This signals a new chapter of economic cooperation in this part of the EU that will contribute not only to economic development but also to European competitiveness on the global stage.”

EU economic integration and global competitiveness

The 3SI Innovation Fund is modelled on a EIF initiative from 2017: the Central Europe Fund of Funds (CEFoF), which enabled five participating countries – Austria, the Czech Republic, Hungary, Slovenia and Slovakia – to mobilise €700 million and, in the process, increase equity investments in small and medium-sized enterprises (SMEs) and small mid-caps in the region.

“Supporting small and medium-sized enterprises, including innovative ones, is part of BGK's mission. That's why the EIF's initiative to establish a new fund of funds met with our great interest. The capital raised will allow us to develop an ecosystem of equity investments and grant access to finance to companies at later stages of development. In this way, Polish companies will be able to obtain alternative sources of funding. The Three Seas Initiative Innovation Fund will in the long term contribute to increased employment and economic competitiveness.

As a Polish development bank, we want to be involved in such international initiatives that strengthen the relationship between the EIF and the banks in the Three Seas region”, says Mirosław Czekaj, President of the Management Board of BGK, Polish development bank.

Our decision to join the 3SI Innovation Fund was influenced by the positive experience with the Central European Fund of Funds. Several Czech private equity funds and also Czech companies were invested from this Fund. The market response was therefore encouraging. I believe that the 3SI Innovation Fund will have a similar impact for the Czech environment of start-ups and growth small and medium-sized enterprises” said Martin Potůček, CEO of NRI.

Sustainable economic growth

Funds of funds targeting innovation and growth while heeding the need for climate action play a crucial role in fostering sustainable economic development. They channel capital into high-potential sectors that drive technological advancements and environmental sustainability. By pooling resources and investing in a diverse range of underlying funds, funds of funds reduce risk for investors while amplifying the impact across multiple innovative ventures, including clean energy, green and cutting-edge technologies.

Such funds can help bridge financing gaps for companies developing climate-friendly solutions, which are essential for meeting global environmental targets. In turn, these investments stimulate job creation, increase productivity, and position economies to be more resilient and competitive in a rapidly evolving global market focused on sustainability.

Background information

The European Investment Fund (EIF):

The EIF is part of the European Investment Bank Group (EIB) Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

Bank Gospodarstwa Krajowego (BGK):

BGK is a Polish development bank, the only such institution in Poland. BGK supports the sustainable social and economic development of the country. Its activities influence job creation, housing construction, infrastructure development and air quality improvement. The bank cares about future generations - it builds social capital, develops entrepreneurship and provides responsible financing. It is present in every region of Poland, as well as abroad - it has representative offices in Brussels and Frankfurt am Main. The bank is involved in the implementation of European Funds in Poland, as well as products financed by the National Reconstruction Plan. BGK supports exports and foreign expansion of Polish companies. Through cooperation with business, the public sector and financial institutions, it responds to economic needs and undertakes a range of initiatives promoting sustainable development.

National Development Investment (Národní rozvojová investiční / NRI):

NRI is a subsidiary of the Czech National Development Bank (Národní rozvojová banka / NRB). NRI is focused to implement equity and quasi-equity financial instruments from public resources, in model of direct investments or fund of funds. Main areas of investments are venture capital, private equity and urban development.

Press contacts

EIB Group

Luxembourg: Tibor Jona | t.jona@eib.org | Tel.: +352 691 287 052

Poland: Gabriela Baczyńska | g.baczynska@eib.org | Tel.: +48 502 355 634

Czech Republic: Katarina Karmazinova | k.karmazinova@ext.eib.org | Tel.: +420 730 156 873

Website: www.eif.org  | www.eib.org/press  | Press Office: +352 4379 21000 | press@eib.org

    

NRB / NRI:

Klára Vaníčková

Tel.: +420 775 292 663

E-mail: tiskovecentrum@nrb.cz

BGK:

Anna Czyż

Mobile: +48 609 220 208

E-mail: Anna.czyz@bgk.pl