Innovation Nest is an early-stage fund focused on investing in European B2B software firms. Based in Kraków, we can keep a close eye on what is going on in the Polish B2B software business.
Every year, the number of companies in the Polish B2B software market grows. This year, the landscape contains around 240 startups.
When we were doing our research on the Polish B2B software landscape, we decided to create something more than just standard graphics with company logos assigned to different categories. That is why this year’s edition comes enriched with extra data on revenues, funding, investors, and employment in Polish companies that build B2B software.
Covid-19 vs. B2B software
Despite the coronavirus pandemic affecting the Polish economy since early 2020, Polish SaaS companies proliferated. In 2020, Polish B2B software companies received 50 rounds of funding worth 96 million EUR. That total is almost 1/6 of the funds collected by Polish companies from this sector in the past year.
That statistic shows the pandemic did not harm the market’s development and probably encouraged many companies to focus on improving products and establishing new business relationships.
Polish B2B software companies generated €220 million in their last financial period (2020). Also, Poland’s GDP was PLN 2,317 billion in 2020, according to the Central Polish Statistical Office’s estimates. Using this data, we can calculate that Polish SaaS companies generated total revenues of almost PLN 960 million, which means they were responsible for 0.04% of Poland’s GDP.
Most companies in the landscape, with public financial statements, generate yearly revenue ranging from 100k to €1 million (77 companies). However, there are also a growing number of companies with over €1 million in revenue yearly. Currently, there are 45 such companies, primarily in marketing, sales, e-commerce, and the HR industries.
Five companies generate more than €5M per year, with Livechat being the leader generating more than €30M revenue.
In total, companies listed on the landscape have raised over €646M in funding. In 2020 alone, Polish B2B software companies raised more than €200M, with the most significant deals being Codility (€22M), Cosmose (€15M), and Infermedica (€10.3M).
Many forces influence investments in the Polish B2B software business. A good example is Booksy’s most recent round, which raised €80 million at the start of 2021. This amount is more than the previous year’s five largest investment rounds combined!
Given that companies in marketing, sales, and human resources earn the most income, it is not unexpected that this is where the investment is most concentrated. As a result, marketing and HR share the first position on the podium, with 30 investments apiece. Surprisingly, the second-most-invested-in industry is ERP, with 27 investments, while the last position on the podium is Sales, with 23 investments.
In 2020, we saw the most investment in the categories: HR (over €23M raised), Finance (over €12M raised), and Health (€11M raised).
We’ve found out that many foreign funds invest in Polish B2B Software companies; 46 out of 110 VC funds invested in companies in our landscape are from outside Poland.
The foreign VC funds most active on Poland’s B2B software market are from the US (16 investments done by 15 funds. The following country with the most significant number of investments is the United Kingdom, with ten funds involved in 13 Polish companies. The following two countries worth mentioning are Germany, with five funds involved, and the Czech Republic, with three funds invested in 7 companies!
In our list, the all-time most active Polish B2B software company investors are:
- Innovation Nest with 17 investments
- Inovo Venture Partners with 10 investments
- bValue and BlackPearls VC, both with 6 investments.
On the other hand, foreign funds with the most significant number of investments in Poland are Finch Capital, Kaya VC, and Credo Ventures. These funds have investments in + 3 companies each. Interestingly, Kaya VC and Credo Ventures are both based in the Czech Republic.
In total, over 7,400 people work for B2B software companies in Poland. On average, Polish companies in this sector hire 32 employees. However, most companies (63) employ between 10 and 20 employees.
The top 5 companies with revenues of more than €10 million employ on average almost 250 people.
The leading company is Docplanner, which currently employs over 420 people in terms of the number of employees.
We’ve observed the Polish B2B software market for a long time and are familiar with its dynamics and rapid growth. Even though we are only in the middle of 2021, it has already shown us some exciting trends that we will share in the next issue of the landscape.
As we compile a comprehensive picture of the B2B software sector, we’d very much like your feedback. For example, let us know what data to include and tell us what changes will make this work more valuable to you.
If you see a company that’s missing, be sure to let us know by filling out this simple form: https://in.typeform.com/b2bLandscape21
Should you have any questions or would like to see the complete database, email any of our landscape authors. They will be more than happy to share details with you.