Why One of Poland’s Leading Funds Pivoted from Startups to Scaleups
Tags: Venture Capital, Growth Equity, Polish Startups
In a Polish venture ecosystem once defined by €250K seed tickets and a race for unicorn status, the team behind bValue has taken a bold contrarian turn. Rather than chasing the next early-stage darling, the Warsaw-based fund has pivoted to growth equity—and it may be exactly what Poland’s tech economy needs.
In 2022, at the height of the Polish startup boom (PLN 3.6 billion deployed across the ecosystem), bValue launched bValue Growth—a €90 million fund focused not on ideas, but on companies already producing €5–15 million in annual revenue and demonstrating profitable, scalable operations. “Too much money was chasing too few quality projects,” says Michał Bartosz, General Partner at bValue. “The VC space had become saturated. We saw it coming—and acted.”
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Now, with several deals under its belt, bValue is helping to define what might be called “Poland’s missing middle”: companies too mature for classic VC, too nimble for private equity, and in search of capital that comes with partnership, not ownership.
From Unicorn Dreams to EBITDA Reality
The fund’s thesis is refreshingly pragmatic: not every business needs to grow 100x. Sometimes, 3–4x growth on healthy revenue is a more sustainable—and more valuable—proposition. That means fewer bets, deeper due diligence, and closer relationships with founders.
Unlike typical venture models that rely on one or two breakout wins in a portfolio of 30, bValue expects every investment to deliver. “We’re not gamblers,” Bartosz says. “We’re builders.”
Their recent portfolio reflects this logic:
Sportano, an e-commerce sports retailer, doubled its revenue to nearly PLN 500 million in under two years.
Solidstudio and Fudo Security have scaled steadily in the software and cybersecurity verticals.
Traditional businesses like Xtreme Brands (fitness) and Hostersi (cloud infrastructure) showcase how tech-infused models in non-tech sectors can still deliver venture-level returns—without burning cash.
The Hidden Market Opportunity: Growth Capital for Poland’s SMEs
Poland’s startup economy has matured faster than its financing infrastructure. While VC funds and public grants helped early-stage ventures flourish, growth-stage companies—those earning real revenue—have long lacked access to tailored capital.
This is where bValue saw the gap. “We meet with around 300 companies a year, mostly Polish SMEs,” says Bartosz. “And many of them don’t even know they need a growth investor. They’re profitable, stable, and growing—but they’ve never considered taking outside capital. So we reach out.”
This approach flips the traditional VC pipeline: instead of waiting for pitch decks, bValue proactively sources companies and builds trust over time. The reward? A pipeline of investable businesses that would never appear on the radar of traditional VCs.
Why Founders Are Buying In
What do these founders get in return? According to bValue, three things:
Horizontal Knowledge: Learnings from across sectors—what worked in e-commerce can often be adapted to SaaS, and vice versa.
Vertical Experts: Access to high-level talent and advisors. In Sportano’s case, this included an international expert to broker deals with Nike and Adidas.
Portfolio Synergies: Strategic collaborations between portfolio companies that unlock new markets or efficiencies.
Unlike VCs who check in quarterly, bValue works with teams weekly. It’s a hands-on, sleeves-rolled-up model of capital.
Avoiding the 2022 Trap: “Empty Revenues” and False Security
Bartosz is candid about the lessons of 2022—the peak of startup euphoria in Poland. “Too many founders raised millions before proving anyone would pay for what they built,” he notes. “The capital allowed them to delay reality.”
The result was a wave of “empty revenue” businesses—high top-line, but no margin, no retention, and often no clear path to sustainability. bValue declined to invest in several such companies. Instead, it focused on modestly capitalized competitors who quietly executed—and became profitable.
Not Quite PE, Not Quite VC—But Just Right for Now
Is this a long-term play, or just a phase? “We’re not ruling out private equity,” says Bartosz, “but our sweet spot is where the founder is still involved, still leading—and still wants to grow, not exit.”
That niche—minority investments in profitable SMEs looking to scale—is underserved across Central Europe. It’s also culturally aligned with a generation of Polish entrepreneurs raised during the 1990s: builders who now seek structured growth, not flashy exits. As the market resets, bValue may prove prescient. According to European growth capital market data from Invest Europe, the mid-cap growth segment (deals between €5M and €25M) is expanding faster than any other across the EU, particularly in Germany, Poland, and the Baltics.
A New bValue Investment—and a Hint of What’s Next
The fund is currently finalizing a new investment with an international partner—one that aims to “revolutionize” a traditional business model and bring a niche Polish company into the spotlight. Full details are under wraps until Q4 2025.
By then, bValue plans to have completed two or three more investments, before shifting into value-building mode and raising its next fund.
In the meantime, Poland’s startup ecosystem—once the playground of grant-fueled ideas—is starting to grow up. And bValue, ever the contrarian, is there to greet it with more than just capital: it brings maturity, rigor, and a blueprint for sustained growth.
