StartUp Poland has released its first report on Polish StartUps. The organization represents the local startup community and has a mission of developing the ecosystem and lobbying the interests of entrepreneurs. The mission of the report was to obtain and share information about the size of digital economy in Poland and its impact.
The first goal of the research was to create a list of all companies in Poland that call themselves “startups”. This list included 2.432 companies, all of which were asked to fill in a questionnaire which consisted of 36 questions with the possibility of open-ended answers. 17 % (423 startups) completed the survey, which gave data for the research.
The report shows that more than half of startups in Poland are located in three major hubs: Warsaw, Krakow and Poznan. Business models B2B and B2B2C among startups constituted 78%, with only 21 % of companies selling B2C. Moreover, those startups which grew more than 50% annually, confessed selling mostly to big corporations and are focused either on mobile or big data. Software development enterprises constituted 39% and mostly sell their products as SaaS. An interesting group among Polish startups are exporters. 54% of startups export their products abroad, mostly in UK or States.
Financing models of Polish startups indicate high rate of bootstrapping, moderate dependence on EU funds and presence of venture capital. Bootstrappers constituted 60% of companies and were profitable since the beginning. Every fifth surveyed startup received venture capital funding from Poland or abroad. When asked about their needs, 60% of respondents mentioned money, 50% need better network or qualified employees. The strive for better connections is anything but surprising, since only 12% of founders said that they go to startup events, conferences or are searching for mentors. There were also defined and researched the groups of “experienced” and “newcomers” enterprises. “Experienced” were defined as those who had started a business before, and proved to have more confident and efficient strategies. 53% of them indicated stable revenue cashflow within the first year of functioning.
The report has defined the industry of startups in Poland and offers data and tools that enable us to measure its size, development and impact on the GDP. The Polish version of the report is available for downloading here, with English version coming soon.