The Fund of Funds to provide BGN 30.5 mln. in fresh financing to Start-ups
Today, 28 March 2019, the Fund of Funds (FoF) signed an operational agreement with the selected financial intermediary for the launch of yet another accelerator and seed financing fund — an initiative supported by Operational Programme Innovations and Competitiveness 2014—2020 (OPIC), co-financed by the European Structural and Investment Funds.
The financing targets entrepreneurs at the earliest stages of developing their business ideas. It will be managed by Innovation Accelerator Bulgaria AD and a team comprising such key figures as Leona Aslanova, Borislav Stefanov, Anna-Marie Vilamovska and Alexander Djoganov. The team will focus on developing a fund dedicated to investing 30.5 million BGN in start-ups, including 27.4 million BGN in public financing, plus a component to be raised from private investors.
The FoF will support innovative ideas through equity and quasi-equity investment and setting up and developing business models. After the launch of the first seed financing fund in December, the FoF takes another step forward by deploying a further 27.4 million BGN to improve the availability of funding to entrepreneurs with innovative projects and further enhance the start-up ecosystem in Bulgaria.
In addition to financing, Innovation Accelerator Bulgaria AD will provide mentoring and strategic support to companies, enabling them to form and connect within business networks. The Fund manager plans to invest in start-ups that implement innovative business ideas in areas such as healthcare, education, care for the elderly, transport and logistics, the light industry, digitalization, etc.
Through the selected intermediary financing will be made available to more than 200 enterprises, with investment at the acceleration stage of 100 000 BGN, having the potential to reach 2 million BGN at the very early stage of development.
By signing the agreement, the Fund of Funds successfully brings its total investment to 751.2 million BGN or 60 % of the funds under its management during the programming period.