The Fund of Funds (FoF) has launched a call for selection of a financial intermediary with respect to a new Technology Transfer Fund (TTF). The instrument is financed by the Operational Programme Innovation and Competitiveness 2014-2020, co-financed by the European Regional Development Fund.
The public funds contribution amounts to BGN 56.3 million (EUR 28.8 million) and with the additional funds to be raised from private investors is expected to increase in size to BGN 75.5 million.
The Technology Transfer Fund provides equity and quasi-equity investments in Bulgaria by means of supporting technology transfer and innovations developed in cooperation with research institutions and organisations.
Thus, the TTF aims to facilitate the process of creating direct links between science and businesses by ensuring a favourable environment for innovations originating from universities, technology parks, research laboratories, etc. in the process of commercialisation of the outcomes. The Fund aims to create good practices in the area of investment in R&D&I activities.
It is necessary that the functioning of the financial instrument enables focus on investments that tap into and develop potential in the following four thematic areas of the Innovation Strategy for Smart Specialisation 2014–2020:
- mechatronics and clean technologies;
- informatics and ICT;
- healthy life industries and biotechnologies;
- new technologies in the creative and recreative industries.
Following the extensive market consultations and taking into account the recommendations received from the wide variety of participants in the market test, the TTF has been structured as an investment fund comprising the following two sub-funds:
- ‘Early stage’ sub-fund with a budget of BGN 4.9 million up to the maximum of BGN 9.8 million of the total committed budget of the Fund of Funds, which will target primarily start-ups at the proof-of-concept (PoF) stage, acceleration stage and early growth stage, with individual investments in the range of BGN 30 000 up to BGN 391 000;
- ‘Commercialisation’ sub-fund with the rest of the total budget, which is available and disbursed on supporting enterprises in the process of introducing innovations and/or investing in mass production and the development of the sales of a new product/service, with individual investments capped at BGN 5.9 million, but may, by way of exception, reach BGN 10 million upon a justified request submitted to the selected Fund Manager.
The eligible support for businesses thus covers start-ups, small and medium enterprises (SMEs) and large enterprises.
The Technology Transfer Fund is established for a period of 10 years with the possibility for an additional 2 years extension of this period.
The key requirements in the selection process of Fund Manager for the TTF will be relevant experience in equity investment in cooperation with research organisations and innovative enterprises. The Fund Manager is expected to possess high level of know-how and strong expert profiles of the team members combining research and investment experience and practice.
Candidates for Fund Managers are welcome to submit proposals at the office of the Fund of Funds until December 19, 2019.
More detailed information about the call and all the necessary documentation to participate in the procedure are available at the following URL: http://www.fmfib.bg/bg/buyer/procedure/49
