Seed/Acceleration and Start-up Fund

The Seed/Acceleration and Start-up Fund (SASF) is implemented in line with the goals of Operational Programme Innovation and Competitiveness 2014-2020 (OPIC). It is aimed at improving the survival prospects of start-up businesses and offers support for sustainable and knowledge-based business models.

The BASUF is an instrument for equity and quasi-equity investments designed to support the setting up and development of sustainable business models, as well as to develop and improve the entrepreneurial ecosystem in Bulgaria. The OPIC funds made available for the financial instrument amount to EUR 51.3 million, allocated into three funds:

• Fund for Acceleration and Pre-Seed Financing at Stage I, EUR 14 million;

• Fund for Acceleration and Seed Financing at Stage II, EUR 18.2 million;

• Fund for Start-Up Financing, EUR 19.1 million.

Fund managers will be required to top up the resources in the three funds of the BASUF with private capital, with up to 10% for the Acceleration/Seed Financing funds and up to 30% for the Start-Up Fund, respectively. The funds will be closed-ended and private financing will be secured at the fund level and/or by co-investing at the level of the final recipient. Possible forms of investments could include equity instruments, such as shares of stock, equity stakes, other transferrable securities or equivalent rights or instruments vesting the right to equity participation in a given company. Financing per company ranges from EUR 25 000 to EUR 1 million.

The investment term is five years, and the life of each of the three funds should be ten years, with an option to extend it by two one-year periods.

Current status of the instrument: For Lots I and III, the next step is to sign operational agreements with the selected fund managers by the end of 2018, following which the financing will be available to final recipients. For Lot II, the next step is to announce a procedure to select a financial intermediary.

Full information on the procedure, as well as the respective documentation, are available on the website of the Fund of Funds at  http://fmfib.bg/bg/buyer/procedure/23