Investment policy

The NCF is a fund of funds. We invest in venture capital (VC) funds that finance the development of companies searching for investors who will provide their innovative projects with needed capital.

Our capital is entrusted to best managers who are able to create substantial value of portfolio companies and consequently generate high rate of return for the potential funds’ investors.

What we invest in?

The NCF invests in funds that finance the development of SMEs with seat in Poland, especially innovative entrepreneurs already carrying out research and development projects and these of huge development potential.

Financing structure

The NCF’s share in fund’s capitalization can reach up to 50%. The financing structure we will favour is based on capital entry with slight debt, mostly by a ratio of 85% of capital to 15% debt in form of bonds. What is more, the NCF can provide some non-returnable funding reaching up to 10% of own financial contribution for a part of costs connected with preparation and monitoring of the investment.


The participation of private investors, that is who are not state run ones, is the precondition for creating a fund in cooperation with the NCF. Private investors are said to submit to a fund at least 50% of its total capitalization.

Legal form

The funds we mainly invest in are established as limited joint-stock partnerships or closed-end investment funds with its seat in Poland.


Fund’s duration is 10 years or in special cases up to 12 years. Investment period is 4 years with possible continuation of one extra year.

Fund’s selection

The NCF selects a fund by an open tender of offers. Announcements of tender of offers are made on NCF’s web site, in the press and in Public Information Bulletin (BIP). Please refer to: Investment Process

Investor's Supervision

The NCF is a passive investor that exercises supervision through its participation in fund’s supervising body and in Investment Committee.

Favouring of private investors

A crucial preference of fund’s private investors is their priority right to distribute the revenue from an investment. The order of disbursement is as follows:

  1. private investors until they receives capital contribution equal to the invested capital
  2. the NCF up to invested capital
  3. private investors until they receive a minimal rate of return (hurdle rate)
  4. the NCF until it receives a minimal rate of return (hurdle rate)

The rest is distributed to managers, investors and the NCF according to the agreement. In most cases managers have a right to receive 20% revenue as a part of motivating salary (carried interest). In case the NCF's investment is done in form of fund’s bonds the revenue will be distributed to the NCF until it receives capital contribution equal to the invested capital and agreed hurdle rate.

Venture capital is medium- and short-term high risk investment capital that might bring huge profit in the future. In this way innovative investment projects that are at the same time very risky might be financed.

Read more about VC funds



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