Poland – Israel cooperation

Tomasz Domogała, who manages TDJ holding founded by his father, made an agreement with Pitango (one of the biggest venture capital funds in Israel) and National Centre for Research and Development. The cooperation will lead to the creation of TDJ Pitango Ventures fund with the base in the form Israeli know-how, 210 million PLN in the pocket and focused on the Polish start-up market.

The Management Board of TDJ Pitango Ventures is to be made of two people – Daniel Star with knowledge of Israeli start-up sector, who gained experience in Inter Capital fund, and Wojciech Fedorowicz, a graduate of Stanford University known for developing his own start-ups in Poland. The investment committee is to include three experienced Pitango managers.

As professor Maciej Chorowski, director of National Centre for Research and Development highlights, launching a new fund is another element of support system for entrepreneurs focused on innovations.

Israeli start-up sector is mammoth, and all this thanks to the state investing large amounts in the sector in the ‘90s. Thanks to the policy, there is much more venture capital flowing to Israel than to any other country. What is more, international giants such as Microsoft, Google or Intel are forcefully reaching out for Israeli technologies and investing in research centres in the country.

Rami Kalish, co-founder of Pitango, started thinking about entering Poland in 2008, but as he claims, the start-up market in Poland was only starting evolving. Another attempt at talks was made by him in 2014, yet again nothing came out of it. Finally, with TDJ, they managed to work out satisfactory cooperation terms.

Polish start-ups cannot complain about lack of attention from investors. A few days ago, Sebastian Kulczyk announced launching his own fund that aim to back up new companies. His fund will have 60 million USD. Tomacz Domogała points out that funds are competing with each other, but there are more and more ingenious people, therefore the number of projects worth investing in is also growing. TDJ Pitango Ventures aims to invest in big data, artificial intelligence, SaaS and digital medicine.

Investment Outlook and Business Perspective

Poland remains one of the most attractive investment destinations in the European Union. With GDP exceeding EUR 650 billion, Poland is the sixth largest economy in the EU and the largest in Central and Eastern Europe. The country has maintained positive economic growth for over three decades, including through multiple global crises.

Foreign direct investment in Poland continues to grow, driven by the country’s strategic location, skilled workforce, EU membership, competitive costs, and improving infrastructure. Key sectors attracting investment include manufacturing, technology, business services, logistics, and financial services.

For investors considering entry into the Polish market, proper structuring of the investment vehicle is crucial. The choice between a sp. z o.o. (LLC), S.A. (joint-stock company), branch office, or joint venture depends on the investment size, sector, tax considerations, and long-term strategic objectives. Professional advisory can help optimize the structure from both operational and tax perspectives.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our VAT and tax advisory, or contact us for a free consultation.