The Fund of Funds (FoF) will invest a total of over BGN 660 000 (around EUR 340 000) in six start-ups. Each of the companies will receive between EUR 50 000 and EUR 100 000 to accelerate their development.
This involves projects in the field of new technologies and the introduction of innovations such as industrial 3D printing, modern financial technologies, outsourcing platforms, software products. Companies will use the money to expand their current markets and enter new ones, and for marketing and commercialization of their concepts.
The investments are made through one of the funds for acceleration and seed financing, the Innovation Capital Fund, which is already active on the market The structure is managed by the Fund Manager, Innovation Capital and is supported by funds from operational program Innovation and Competitiveness 2014-2020 (OPIC) co-financed by the EU’s European Regional Development Fund. The fund aims to improve the survival prospects for start-ups with serious growth potential.
The acceleration and seed financing funds created by the FoF are an equity and quasi-equity investment tool that supports the creation and development of sustainable business models and fosters the entrepreneurial ecosystem in Bulgaria. OPIC funds earmarked for that financial instrument amount to EUR 51.3 million (BGN 100.3 million). Fund managers selected by the FoF are required to leverage the public resources by supplementary private capital.
Currently, two acceleration and seed financing funds are actively working on the market. Their fund managers are Innovation Capitaland New Vision3. The investment period of the third fund, managed by Vitosha Venture Partners, is expected to begin in the coming days.
The financing is targeted entirely at small and medium-sized enterprises in a relatively early stage of its development. Any innovative idea can apply to one of these funds and receive financing in the range of EU 15 000 and EUR 1 million. The investment period is until the end of 2023.
The Venture Capital Fund set up by the FoF also provides financing opportunities. It is managed by Morningside Hill. Financing is available for business ventures with high growth potential and can range between EUR 750 000 and EUR 3.5 million.
