Business start up in Poland

Why Poland?

Twice as many startups as 5 years ago

The number of tech companies that responded to the survey in 2019 (1,235 total) increased by 12% on last year, and by 290% compared to the first survey in 2015. We estimate the current number of technology startups in Poland to be between 4,300 – 4,700 companies, with 60% being exclusively IT/ICT companies.

 

If there is a silicon valley in Poland, it is in Lower Silesia

The highest concentration of tech entrepreneurs is in Wrocław and its environs in the region of Lower Silesia, in the south-west of Poland. Statistically, it takes just 4,500 Lower Silesians to form one tech company, a strong sign of how rich the region is in highly skilled, entrepreneurial tech talent. Two universities from Wrocław have attained a ranking of top rated academic institutions cooperating with startups, which proves how the collaboration between science and business fosters prosperity and entrepreneurship.

 

65% of all startups in 5 hubs

Warsaw, Wrocław, Kraków, Lublin and Tri-City, in that order, are the largest startup ecosystems, being home to over half of all Polish tech companies. Disappointingly, the entrepreneurial potential of some of the biggest Polish metropolitan areas, such as Poznań, Łódź and Katowice, has been consistently declining over the years.

 

 

About 130 startups with a solid business model and consistent growth rate

From the whole survey sample, only 44 startups (3% of the sample) have an average monthly revenue of over EUR 125k and have been growing on average 7% or more per month, in the last 6 months. Most of these champions work in the space of Artificial Intelligence, although AI is generally the hottest field for all the tech startups in Poland. If our estimations are correct, it could mean that all the VC funds which are looking for series A+ deals are fighting over a pool of around just 130 startups.

Polish techies still sell cheap

Polish techies must simply have no idea how to price their services, or they really understate their revenues. Out of 70 teams that have declared themselves to be busy, mostly with tech consulting and a base business model focused on time and materials, over 60% make at most EUR 25k a month – can you imagine? In the most optimistic case, namely of a one-man-software-company, this means an hourly rate of less than EUR 156, a very competitive rate compared to the US or Western European developers.

 

 

Exports consistently falling: over 60% of startups have no foreign clients

Just 39% of startups surveyed have any customers outside of Poland. This is a 7pp decrease on last year, and an alarming 18pp decrease compared to 5 years ago! The downward trend goes hand in hand with a declared eagerness to expand the business internationally: 75% of all startup plan to do so within 12 months. This willingness has been stable over the years, but apparently going abroad takes more than just a wish

 

 

It is twice as easy to get a state grant than a term sheet from a VC

Of any three startups looking for some kind of funding, one will get a term sheet, and two will get a state grant, provided they have been meeting VCs or applying for grant instruments. Statistically speaking, 32% is the success ratio for startups looking to raise a venture round and 69% – for public grant applications. However, half of the grants are less than EUR 125k, so we are not talking about an amount of capital that is enough for world class R&D.

 

10% of VC-backed startups have raised more than EUR 2.5 million

While 5 years ago an EUR 2.5 million round was something all Polish business media outlets would have covered with flashy headlines, such an amount today is more mundane. Even so, 75% of VC-backed startups have raised less than EUR 1M.

 

The choice of business in Poland depends on different situations of the applicants. Usually after the company is registered and before applying for temporary residence permit in Poland, to stablish a safe and profitable business will be your first priority.

Legal Baltic experts will accompany you at all stages of starting a business in Poland or buying ready-made businesses in Poland or selling your business in Poland, to help you expedite and make the most of the affairs.

After immigrating to Poland and starting to live in Warsaw or other cities of Poland, to succeed in a new business, familiarity with new conditions and new rules and new market information is essential.

As we have in our team, people from Middle East and from Asia, we understand you better. Usually when you contact a business start-up service provider in Poland, they make it very difficult and expensive. But our aim is to make your business establishment as easier and affordable as possible. We know what does it mean slowly by slowly in your culture.

Why Legal Baltic?

Legal Baltic staff are able to provide the customers with appropriate services according to the budget and facilities, due to having experienced international business managers and personnel as well as having wide connections in Poland and with the knowledge of the needs of Poland market. Also in market research and establishment of business and the selection of partners in Europe and concludes a contract with them we will be with you.

You can benefit from the support of Legal Baltic from the first point to the point of success and achieve your target market. The range of services offered by us, start from establishing a small café in different cities, up to the establishing a large industrial factory in the free economic zones of Poland.

Therefore, for more information and advice from our professional staff, who are familiar with Polish immigration laws and business rules, please contact us by email or telephone to provide the necessary guidance and after analysing the Polish market in the area where you are looking for, Provide work arrangements.

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