SEED/ACCELERATION AND START-UP FUND

Be prepared for Fund of Funds: Financing for the 2nd generation of acceleration and start-up funds in Bulgaria backed by EU resources this Sunday.

We will talk about the opportunities of funding for starting companies on concept level.

You can find more about Fund of Funds in our blog: https://www.techstars.com/content/uncategorized/fund-of-funds/









FUND MANAGER OF FINANCIAL INSTRUMENTS IN BULGARIA

FUND MANAGER OF FINANCIAL INSTRUMENTS IN BULGARIA

Who we are?
The Fund Manager of Financial Instruments in Bulgaria EAD /FMFIB/ was established in September 2015 as a commercial entity, wholly owned by the Bulgarian State, for the purpose of managing the financial instruments /FI/ designed to support the implementation of operational programmes /OP/ co-financed by the European Structural and Investment Funds /ESIF/. All OP funds are pooled into a common Fund of Funds structure, under the FMFIB management. Centralizing the management of financial instruments aims also at building relevant expertise at a national level.

The mission of the FMFIB is the effective and sustainable management of Financial Instruments through entrusting mandates to financial intermediaries based on competitive and open processes, which provide for mobilizing additional private capital.

What type of financial instruments do we manage?
For the current programming period 2014-2020 FMFIB has signed funding agreements for FIs management with the following four Operational Programmes: Regions in Growth (OPRG), Innovation and Competitiveness (OPIC), Environment (OPE) and Human Resources Development (OPHRD).

The public resources managed by FMFIB amount currently to EUR 600+ million. The expected leverage effect would boost the cumulative monetary contribution to nearly EUR 1.4 billion, which will be actively invested in the Bulgarian economy. Generally, the Financial Instruments provide for equity (incl. quasi-equity) and debt (incl. risk-shared loans and/or guarantees) financing. Those FIs address identified market inefficiencies.

The equity portfolio managed by FMFIB amounts to EUR 150 million of gross funding. The equity investment strategy agreed with OPIC envisages four types of funds covering the entire investment cycle across the VC/PE spectrum, including a designated Technology Transfer Fund. Based on procurement procedures, which comply with the national and the EU regulations, FMFIB will select fund managers, which in turn will set up EU based alternative investment funds, where FMFIB will take the role of a limited partner alongside other independent private investors. FUND OF FUNDS, 30-32, Totleben Bvrd., Sofia 1606, Bulgaria Tel. +359 2 801 40 50, office@fmfib.bg, www.fmfib.bg

The equity funds have the follow major characteristics:

  • Seed/acceleration and start-up fund
    • Seed/acceleration and start-up fund aims to improve the prospects of survival of start-ups and support sustainable and knowledge-based business models. The budget amounts to EUR 51 million. The procedure for selecting Fund managers has been launched in September 2017 and it’s on his final stage. The resource is expected to be on the market in the end of 2018 – beginning of 2019.
  • Venture Capital fund
    • The purpose of the Venture Capital Fund is to invest in a diversified portfolio of enterprises through equity and quasi-equity instruments, thus supporting the growth of early stage SMEs in Bulgaria. The VC Fund would also provide strategic support to its investees so to enhance their competitiveness by strengthening management capacity and good corporate governance practices. The budget amounts to EUR 24 million. The procedure for selecting Financial intermediaries has been launched in May 2018. The deadline for sending applications for participation in the procedure is June, 25th. The financial resources will be on the market in the end of 2018 – beginning of 2019.
  • Mezzanine/Growth Fund
    • The Mezzanine/Growth Fund aims to support matured-stage SMEs with strong growth potential. The fund will support the companies in increasing their manufacturing or service capacity and the development of new products and production methods. The budget amounts to EUR 38 million. The procedure for selecting Financial intermediaries is going to be launched in the first half of 2018 and the financial resources will be on the market in the end of 2018 – beginning of 2019.
  • Technology Transfer Fund (TTF)
    • The Technology Transfer Fund will secure equity and quasi-equity financing to final recipients which develop projects in alignment with the goals of the national strategy for smart specialisation focusing of industries such as ICT, pharmaceutical and bio technologies, mechatronics, nano- and clean technologies, creative and recreational industries. Eligible final recipients include both SMEs and large companies. The budget amounts to EUR 30 million.

      The TTF’s main purpose is to support the commercialization of viable projects, incl. at their proof of concept stage, generated by scientists, universities, research organizations etc. as well as the business.