The Fund of Funds (FoF) signed at the Ministry of Innovation and Growth the first contract for the current programming period with Vitosha Ventures II Ltd, selected to manage the Entrepreneurship - Early Stage Fund. It is expected to accumulate a resource of EUR 33.3 million, of which EUR 30 million public funds provided under the Competitiveness and Innovation in Enterprise Programme 2021-2027 (CIP), co-financed by the European Union through the European Regional Development Fund. The selected contractor has committed to leverage over €15 million of private resources, which it will invest in final beneficiaries in addition to the public funds.
The fund manager is a continuation of Vitosha Venture Partners Ltd, who managed nearly €26 million in the previous programming period and made over 100 investments.
With the agreement, FoF builds on the experience and results achieved under the Operational Programme "Innovation and Competitiveness" 2014-2020. The team of the selected financial intermediary has a proven track record in investment activities, including accelerator programmes and portfolio management of early stage companies. In addition to financing, Vitosha Ventures II Ltd will provide mentoring and strategic support to companies during the current programming period.
The Fund provides support to 78 enterprises, mainly start-ups, including those in the early stage of development, acceleration phase or at concept level. Of these, at least 44 must be start-ups (i.e. up to 3 years from the date of registration). Individual funding can range from EUR 25 thousand to EUR 1 million, and nearly half of the supported enterprises should be outside the South West region.
The strategic focus of the new instrument is aimed at the sustainable development of the entrepreneurial ecosystem and increasing the competitiveness of Bulgarian companies in an international context.
The event was attended by the Deputy Minister of Innovation and Growth - Krasimir Yakimov, Executive Directors from the Fund of Funds and experts from the team, representatives of Vitosha Ventures II.
"Today's signing marks the start of the real implementation of the Entrepreneurship Fund - Early Stage, which is responding to the needs of businesses at a time when access to fresh capital is key. Through this CIP support, we are strengthening the environment for start-ups, expanding opportunities for growth and encouraging the attraction of private investment," said Deputy Prime Minister. - Minister Yakimov.
Stoyan Nedin, Managing Partner at Vitosha Ventures II, said, "In the next 4 and a half years, we will be selecting businesses and teams in Bulgaria with the greatest potential to make a large-scale business with an international footprint, and we will be investing in and supporting over 70 of them. We are privileged to be contributing to another much needed upgrade of the Bulgarian entrepreneurial and innovative industry."
The investment period runs until the end of 2029 and the intermediary's first deals are expected to be brought to market this year.
