The lack of investment capital and dynamic changes in the market – these are the challenges faced by Polish startups. Santander Bank in Poland decided to support the development of innovative businesses through the Santander X project and the Santander X Local Award Poland competition.
Polish startups are of great importance in shaping the economic future of the country. However, the problem of lack of access to investment capital poses a serious challenge to their growth. Moreover, changes in the investment fund market and a decline in activity in the global venture capital market have additionally increased the pressure on Polish startups. This situation was also influenced by the development of AI, which significantly lowered the entry threshold in some industries. This made it possible to create completely new markets with hitherto unknown growth dynamics.
“The lack of investment capital, the growing role of technology and the AI revolution intertwined in an instant, creating completely new challenges in the market. As a Bank, we want to be a bridge connecting the vision of company founders with the necessary investment funds. Our task is to support innovative projects and help entrepreneurs achieve their goals. Financial institutions such as Santander Bank Polska have many solutions that can support the development of young businesses,” – says Bartosz Ziółek, Director of Сorporate and Investment Banking at Santander Bank Polska.
As an example of such solutions, the Santander Bank Polska expert gives debt financing in the form of venture debt, which is an alternative to VC. It allows the founders to keep their shares while giving the same chance for the development and a better valuation in the next round of financing.
“The Bank can also finance the development of interesting projects by sharing the risk with the fund. Especially in this context, an interesting form of financing is Venture Debt (Growth Debt). It is a financing model similar to a Bank loan, addressed to fast-growing businesses whose valuation will increase significantly,” – adds Bartosz Ziółek.
In response to the challenges that young businesses are currently struggling with, Santander Bank Polska is addressing the Santander X program to entrepreneurs. It is a global ecosystem aimed at promoting talents and innovations. Santander X helps startups, scaleups, micro-entrepreneurs, and SMEs to obtain the necessary training and mentoring support needed to develop projects or verify ideas. The program also facilitates access to resources and connects specialists and innovators from various industries to create an environment conducive to the business development.
That is why Santander X is organizing a competition for startups in Poland. In its first phase, ten businesses will be selected to be invited to the Mentoring Phase. Of these, three winners will be selected. The highest-rated projects will receive cash prizes for EUR 10,000, EUR 6,000, EUR 4,000, and promotion of projects with the involvement of Santander Bank Polska. The winners will also receive an invitation to participate in the Santander X Global Award, where they will compete at an international level with the winners of the competition from eight other countries.
The winners of the local edition of the competition will also receive access to the Santander X 100 – a global community of the best startups and scaleups, distinguished in Santander X competitions and programs, access to further development, consulting, training, capital, customers, talents, acceleration, and the opportunity to exchange experience.
Details on the terms of participation in the program can be found at here.
Source: the Bank`s press release dated August 08, 2023
