IFC Commits €15M Equity Investment in Cogito Fund II to Support Tech Startups in Central and Eastern Europe

IFC’s financial support is especially crucial in today’s challenging fundraising environment.

The International Finance Corporation (IFC) has committed an equity investment of up to €15 million in Cogito Fund II, a venture capital fund managed by Cogito Capital Partners, based in Poland. This investment aims to support early-growth stage technology companies across Central and Eastern Europe (CEE), providing them with the necessary capital to develop and scale innovative technology solutions, create jobs, and enhance the region's technological capabilities.

Cogito Fund II will primarily focus on investing in Series A+ technology companies that offer software-based enterprise solutions, covering sectors such as process automation, data analytics, fintech, health-tech, and selectively, climate-tech. The Fund will target investments in Poland and other CEE countries including Czech Republic, Slovakia, Hungary, Romania, and the Baltic states. With a target fund size of €125 million, Cogito Fund II serves as the successor to Cogito Fund I, which was launched in 2019 and raised €61.3 million in commitments.

The CEE startup ecosystem has seen remarkable growth over the past five years, with the combined enterprise value of startups in the region increasing by 2.4 times, reaching €213 billion. Venture capital-backed startups and scaleups have been key drivers of this growth, adding €21 billion in value during the same period. Despite this, the region’s late-stage funding segment remains underdeveloped, resulting in a funding gap as startups mature and seek to expand on the international stage.

Sylwester Janik, Managing Partner at Cogito Capital Partners, expressed enthusiasm for the opportunity, stating, "We are grateful to our investors. The successful first close of our next fund reflects the strong performance of Cogito Fund I and the hard work of our team. We are excited about the unique investment opportunities created by the clear equity gap in funding for scale-ups and the high-growth potential of the technology sector in Central Europe."

IFC’s financial support is especially crucial in today’s challenging fundraising environment. It will help Cogito Fund II reach its target size and continue executing its investment strategy focused on supporting early-growth companies in the CEE region.

Ary Naïm, World Bank Group Country Manager for Poland and IFC Manager for Central and South Europe emphasized the importance of fostering a dynamic venture ecosystem to help CEE economies compete at the highest EU standards. “CEE economies need more dynamic venture ecosystems and equity financing to boost competitiveness and converge with the highest EU standards,” said Naïm. “Together with Cogito, we aim to accelerate digital transformation and build a regional ecosystem that aligns innovation, skills, and financing.”

IFC has been a key supporter of private equity funds in Eastern Europe for over 20 years. To date, it has invested over $100 million in eight venture capital funds across the CEE region, helping to drive innovation, entrepreneurship, and job creation in the area.

Through this collaboration with Cogito Fund II, IFC is taking another significant step to support the growth of the CEE technology sector, providing critical financing to help startups and scaleups in the region realize their potential and contribute to economic development.