47609 - Inovo III

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

47609

Company Name

INOVO FUND III SCSP

Date SPI Disclosed

Mar 16, 2023

Country

Central Europe Subregion

Region

Europe

Projected Board Date

Apr 30, 2023

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jul 5, 2023

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : May 10, 2023
Signed : Jun 13, 2023
Invested : Jun 28, 2023

Sector

Venture Capital Fund

Project Description

The proposed Project consists of an IFC equity commitment of up to EUR 15 million in Inovo Fund III SCSp (Inovo III or the Fund) a closed-end venture capital fund targeting investments primarily in Poland and Central Eastern Europe (CEE). The Fund will be domiciled in Luxembourg with a target size of EUR 105 million.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	16.47

Development Impact

Financial Additionality: Own account equity: IFC’s own account equity of EUR 15 million will help the Fund achieve its target size, diversify its investor base, and implement its investment strategy at a larger scale. Non-Financial Additionality: Standard Setting: IFC will develop and implement an Environmental and Social Management System in line with IFC’s Performance Standards, improving Inovo’s governance and environmental and social standards.

E&S Category Rationale / Risks and Mitigation

The project will support non-manufacturing early to growth stage technology companies (2B2, Fintech, E logistic, E commerce, Saas) mainly in Poland but also other EU countries which are expected to have potential limited adverse environmental and/or social risks or impacts that are few in number, generally site specific, largely reversible, and can be readily addressed through mitigation measures. Therefore, the proposed project has been classified as a Category FI-2 project according to IFC Sustainability Policy. The Fund will not invest in any activities on IFC Exclusion List, coal-related activities, or higher risk business activities that may include: a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant occupational health and safety risks. IFC's applicable E&S requirements for this Project will be the Exclusion List, the host country laws and regulations, and the IFC's Performance Standards. The key E&S risks and impacts of this project derive from the Inovo's capacity to identify and manage potential environmental and social risks associated with its investment activities. These risks typically include occupational health and safety, and labor and working conditions associated with the gig economy, among others.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
Bloomcoding	Poland	R-AC- Other Services (Including IT Enabled Services)
Chainloop	Spain	R-AC- Other Services (Including IT Enabled Services)
Cloo	Pitcairn	R-AC- Other Services (Including IT Enabled Services)
Codejet	Poland	R-AC- Other Services (Including IT Enabled Services)
Compass AI	United States	R-AC- Other Services (Including IT Enabled Services)
Embla	Denmark	S-AC- Other Health Services
Evidose	Poland	R-BA- Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Fiat Republic	United Kingdom	O-CA- Finance Companies
Ingenix AI	Poland	S-AC- Other Health Services
Kurs Orbital	Italy	N-AD- Other (Including Satellite Telecommunications, Radio and Television Broadcasting, etc.)
LiveKid	Poland	X-XX- Other (For Non-Investment Projects)
Mindly	Ukraine	S-AC- Other Health Services
Mirai	Indonesia	R-AC- Other Services (Including IT Enabled Services)
Nodeshift	Moldova	R-AC- Other Services (Including IT Enabled Services)
Pupilmed	Poland	X-XX- Other (For Non-Investment Projects)
Pythagora	Turkiye	R-BA- Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Quantia	Poland	Q-BF- Internet Retailers (e-Commerce Companies, platforms, marketplace etc.)
Quesma	Poland	R-AC- Other Services (Including IT Enabled Services)
RiskSeal	Poland	R-AC- Other Services (Including IT Enabled Services)
Sintra	Lithuania	R-AC- Other Services (Including IT Enabled Services)
Smartschool	Poland	T-AC- Other Training
SplxAI	United States	R-BA- Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Tracelight	United Kingdom	R-AC- Other Services (Including IT Enabled Services)
Tracer	United States	S-AC- Other Health Services
TrustPath	Ireland	R-AC- Other Services (Including IT Enabled Services)

Inovo does not have an Environmental and Social Management System (ESMS). As part of the Project, the Fund will be required to nominate an E&S Officer and develop and implement E&S policies and procedures, entailing reviewing the upcoming transactions against the relevant applicable requirements which are the IFC exclusion list, national E&S laws and regulations and the IFC Performance Standards. The ESMS will need to include E&S due diligence procedures focused on assessing and monitoring E&S risks generally associated with the gig economy. The Fund will also need to develop and put in place an External Communication Mechanism. The Fund will be required to inform IFC in the event of any material change in nature or scope of its portfolio activities. IFC will review the Fund's E&S due diligence for the first three investments prior to the Fund's investment to support proper ESMS implementation

Contacts

For Inquiries About the Project, Contact

Inovo Management SARL
Sebastian Czerwinski
Chief Financial Officer
+48 501 147 156
sebastian.czerwinski@inovo.vc
Place de Strasbourg 2 2562 Luxembourg
www.inovo.vc

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Nominate officers	06/30/2023
Establish SEMS	08/30/2023
Devlop an External Communication Mechanism	08/30/2023

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Private Equity Funds Disclosure

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer