The Venture Capital Fund makes available EUR 24.4 million in public funds for management under Operational Programme Innovation and Competitiveness 2014-2020 (OPIC), co-financed by the European Structural and Investment Funds. Applicants will have to secure additional private co-financing, in an amount of at least 30% of the total amount to be invested in final recipients. The Fund of Funds offers the possibility for intermediaries to secure the required co-financing, both at the fund level and at the level of the final recipient, thus providing flexibility for the fund manager in raising the private resources. At the same time, a minimum amount of additional financing and support for companies is provided, in order to help the achievement of their development and growth forecasts.
The funds are designed for equity and quasi-equity investments in high-tech, innovative small and medium-sized enterprises (SMEs) at an early stage of development. The amount to be invested in each enterprise will range between EUR 750 000 and EUR 3.5 million. The purpose of this financial instrument is to provide support to SMEs during the first five years of their life since in that risky period a considerable number of start-ups find it hard to stay in business due to a shortage of financial resources and a lack of an efficient management structure.
A special feature of this investment fund is the additional strategic support and mentorship provided by the fund manager to the investees.
Current stage of the instrument: On 20th February 2019 Fund of Funds officially decided upon the financial intermediary selected for the management of the VC Fund. The chosen bidder in the procedure is the consortium Morningside Hill, comprising of key experts included such as Pavel Velkov, Ekaterina Velkova, Todor Moutafchiyski, Delyan Ganev. Signing of operational agreement with the selected fund manager is forthcoming.
Detailed information on the award procedure to select a fund manager for the Venture Capital Fund, as well as the respective documentation, is available on the website of the Fund of Funds, under the heading of „Buyer Profile“, at http://fmfib.bg/bg/buyer/procedure/25