News and Analysis

The Fund of Funds has Launched a Market Test for a Technology Transfer Fund

The new financial instrument will bring science and business closer together

10.01.2019

The Fund of Funds (FoF) has launched market consultations with potential financial intermediaries and key participants in the investment environment from Bulgaria and abroad, as part of the preparations for a public procurement procedure for implementing a new financial instrument, the Technology Transfer Fund (TTF). Through this process, the Fund of Funds aims to design the optimal structure of the financial instrument, taking into account the current needs of the market and of the widest possible range of stakeholders, as well as the objectives set out in Operational Programme Innovation and Competitiveness 2014-2020 (OPIC), which provides the financing.

The Technology Transfer Fund (TTF) is a specific financial instrument aimed at facilitating linkages between science and industry by creating an enabling environment to foster innovation which in turn helps attract foreign investment and know-how, as well as facilitating international market access for Bulgarian enterprises and innovators.

The resources provided by the Fund of Funds amount to EUR 30 million which is expected to attract additional co-financing from private investors.

In terms of the financing available from the FoF, the structure of the instrument is extremely flexible as it will depend on the stage of development of the business at hand and will vary within a wide range, from EUR 25 thousand to 5 million.

With the funds mobilised the TTF will provide equity and quasi-equity investments in enterprises working on projects related to technology transfer, the benefits of which will be channelled to Bulgaria. The TTF will invest in projects mainly at an early stage of development originating from universities, tech parks, research laboratories, etc.

The aim of the instrument is to put the focus of investment that develops innovation potential into the following thematic areas: mechatronics and clean technologies; information science and information and communication technologies; industry for healthy living and biotechnology; new technologies in the creative and recreational industries.

Eligible final recipients include start-ups, small, medium-sized and large enterprises.

The investing period of the Technology Transfer Fund is expected to be 5 years, with a total life of the Fund of 10 years and a possible extension period of up to two years.

The market consultations will be taking place until February 8, 2019. Interested parties have the possibility to express willingness to participate in the process by phone (+3592 801 40 50) or e-mail at ttf_test@fmfib.bg until 18:00 on February 6, 2019.

After the completion of the market consultations, the results will be summarized in a systematic report and published on the Fund of funds webpage.