Enterprise Investors’ Venture capital fund provides expansion financing to cord blood bank

PBKM is Enterprise Venture Fund’s fifth investment in the last 11 months. The fund is the most active venture capital investor at present in Poland and CEE. This investment also brings the total number of investments made by EI-managed funds to 114.

Polski Bank Komórek Macierzystych, established in 2002, is the largest cord blood bank in Poland and the fourth largest in Europe. It operates in Poland and, through subsidiaries and related companies, in Hungary (Krio), Romania (Biogenis),
Latvia (Cilmes Sunu Banka Sia), Italy (Famicord Italia) and Spain (Sevibe Cells). PBKM collects and stores human stem cells isolated from blood taken from the umbilical cord after childbirth. Stored umbilical cord blood stem cells can be used to treat more than 70 diseases, including leukemia, certain types of cancer, and immune system disorders. To date, almost
14,000 parents in Poland (and another 14,000 in other countries where the bank is active) have decided to store their children’s umbilical cord blood with PBKM and its subsidiaries and related companies. PBKM is the only private cord blood bank in Poland to have supplied stem cells for transplants (all performed in Poland). PBKM is also one of the only two European private banks with AABB (formerly American Association of Blood Banks) accreditation, which is a measure of quality and credibility.

PBKM’s revenues and profits have grown at an average annual rate exceeding 30% in the last few years. Together with its subsidiaries, the company achieved total sales of almost PLN 20 million (nearly €5 million) in 2008. Sales are expected to grow by 30% in 2009.

“The funds which PBKM has received from our new venture partner will finance the company’s expansion, including acquisitions in Central and Eastern Europe, as well as promotion of the fully ethical practice of stem cell storage and usage. The investment experience of Enterprise Investors in our region will help PBKM build a strong capital group that not only uses the latest technologies, but also has best managerial practice,” said Jakub Baran, CEO of Polski Bank Komórek Macierzystych.

“PBKM is a well-managed company that is successful on its market, and we believe in its further fast growth, for which we have provided expansion financing. Besides, the market on which PBKM operates is relatively young and under-penetrated in Poland and other CEE countries. The number of newborns that have their cord blood stored in Poland is several times smaller than for example in Portugal or Greece. So the market in Poland and CEE is well-positioned for further growth,” said Rafał Bator, Enterprise Investors partner who heads EI’s venture capital fund.