Half a million on medication


323Half a million Polish zloty – this is the sum of money that Podlaski Equity Investment Fund  has invested in Diagnosis, a Białystok distributor and manufacturer of home-use medical devices.

Diagnosis, a limited liability company with its seat in Białystok, has existed since July 2002. The company was established by three partners with experience in the medical device market, who decided to start their own business activity. – For the time being, the company has a regional character, but it is the aim of Diagnosis to expand its activity for the whole Poland, and, in the future, also export to the neighboring countries. – said Adam Mocarski, the President of Diagnosis, at yesterday’s press conference. – But, in order to develop our company, we had been looking for an equity partner with capital. We started the first talks with Podlaski Equity Investment Fund in July this year, and already in December we signed the contract. Podlaski Equity Investment Fund has invested 500 thousand PLN in Diagnosis acquiring 1/3 of the shares.

Money for development
– This money will be used to develop the countrywide distribution network and to open new offices throughout Poland. – adds Mocarski. Diagnosis is a production and sales company. It distributes and manufactures home-use appliances. It is an authorized representative of Japanese companies: A&D – a manufacturer of high quality blood pressure monitors, inhalers and electronic thermometers, and TANITA – a world leader in the production of precise, electronic body weight scales and  body fat monitors. The Diagnosis’s offer includes, among others: blood pressure monitors, body weight scales, body fat monitors, inhalers, air humidifiers, stethoscopes and medical wear. – We invest in the companies which aspire to go beyond the region and become national enterprises. – says Adam Kowalczuk, the President of Podlaski Equity Investment Fund. – Even though the company had not existed long before we started the talks, its owners had a long-term experience in the industry, and, first of all, a good and convincing business plan.

You have to take risks
He adds that a couple of days before the contract with Mazur&Jabłoński, the company which Podlaski Equity Investment Fund invested in six years ago, expired. – When we invested in Mazur&Jabłoński, the company employed three people and had only started its activity. Now, with 25 employees, it is one of the biggest in its branch of industry south of the Vistula river. However, not every investment has a successful ending. There are also companies which cannot cope despite a capital support. – It should be remembered that we act as venture capital and we realize that there is a substantial risk when we invest in companies. – adds Andrzej Parfieniuk, the President of Podlaska Regional Development Foundation. – But even if, after a couple of years, it appears that the company has not succeeded on the market, from our perspective, keeping or creating  workplaces for a couple or a dozen of people, is already a success.
Podlaski Equity Investment Fund holds the shares or stocks of such companies as: Stekop, Merinsoft, Bial-Meble, Target Polska, Jazon.

How does the Fund invest?

So far, the Fund has invested over 6 million PLN in the companies of the Podlaskie Voivodship region. Next year the Fund is planning to make further investments in the amount of 1,5-2 million PLN.