IFC Invests Up to €15 Million in Cogito Fund II to Boost Tech Innovation in Central and Eastern Europe

Warsaw, Poland—November 12, 2024—the International Finance Corporation (IFC) has committed an equity investment of up to €15 million in Cogito Fund II, a venture capital fund focused on supporting early-stage tech companies in Central and Eastern Europe (CEE).

The €125 million fund will primarily invest in Series A+ technology companies across various sectors, including fintech, climate-tech, software-based enterprise solutions, process automation, data analytics, upskilling, and selectively, health-tech. Cogito Fund II's management will focus on Poland and other CEE countries such as the Czech Republic, Slovakia, Hungary, Romania, and the Baltic states.

With a combined enterprise value of €213 billion, the number of tech startups in CEE has seen significant growth over the past five years, adding €21 billion to their values. However, despite this success, the late-stage segment of the market remains underfinanced, creating a funding gap for technology startups as they mature and seek international expansion.

"We are grateful for our investors' support. The successful first close of Cogito Fund II reflects the strong performance of our predecessor fund, Cogito Fund I," said Sylwester Janik, Managing Partner at Cogito Capital Partners. "We aim to capitalize on the growing demand for tech investments in Central Europe and address the funding gap faced by scale-ups."

IFC's financial support is crucial in this challenging fundraising environment, enabling Cogito Fund II to reach its target size and execute an early-growth investment strategy.

"CEE economies require more dynamic venture ecosystems and equity financing to stay competitive with EU standards," said Ary Naïm, World Bank Group Country Manager for Poland and IFC Manager for Central and South Europe. "By investing in Cogito Fund II, we aim to accelerate digital transformation and build a regional ecosystem that aligns innovation, skills, and financing."

As part of its mission to support the growth of private equity funds in Eastern Europe, IFC has invested over $100 million in eight venture capital funds across the region.