The Fund of Funds has successfully concluded the preselection stage for the selection of a fund manager for the Venture Capital Fund (VCF). The procedure was launched in May and, in line with the set deadline for submissions, a total of four applications for participation were received. After reviewing the documents and verifying the declared facts, the Fund of Funds has allowed Morningside Hill Management DZZD Consortium and Black Peak Ventures DZZD Consortium to continue on to the next stage in the award procedure.
The Venture Capital Fund makes available EUR 24.4 million in public funds for management under Operational Programme Innovation and Competitiveness 2014-2020 (OPIC). 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 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.
The next step is to invite applicants that continue in the procedure to submit their initial offers. Once the Fund of Funds has examined the offers, negotiation meetings will be scheduled. The Fund of Funds intends to finalise the procedure and select a financial intermediary by the end of the year.
