The Fund of Funds to provide BGN 35.6 mln. in fresh financing for start-ups
Vitosha Venture Partners Consortium Selected as Financial Intermediary
The Fund of Funds (FoF) has selected a manager for the SASF II — the last of the three instruments providing acceleration and seed financing in Bulgaria. The financial instrument is financed by Operational Programme ‘Innovation and Competitiveness 2014—2020’, co-financed by the European Regional Development Fund.
Having evaluated the tenders received from applicants, the FoF selected as winner Vitosha Venture Partners — a consortium established by the partners Marin Iliev, Maris Pree, Eric Paul Anderson, Johannes Paul Weinberger, Maxim Gurwitz and Nikola Stoyanov.
The team comprises professionals with a wealth of experience in both the structuring and managing venture capital investments and designing, setting up and managing accelerator programmes. The partners have acquired a wealth of experience and know-how whilst working on projects in the US and Central and Eastern Europe, with a focus on Latvia, Estonia, Austria, Bulgaria and Romania. They have invested in primarily high-tech companies in the earliest stage of their development.
Vitosha Venture Partners will manage public funds to the tune of BGN 35.6 mln. — an amount expected to be supplemented by at least 10 % in private capital. The selected intermediary will finance at least 76 companies, providing financing of BGN 30 000 up to BGN 2 million.
The new Fund will aim to identify and support promising start-ups with capital and know-how against the acquisition of minority shares. The programme will provide financing to enterprises in the earliest stage of their development, part of available investment funding being earmarked for the development of more advanced start-ups. Within the framework of the programme the applicants approved for financing will also have access to proven professionals with a wealth of experience in different areas of business, standing ready to share their experience and contacts and offer practical tips and guidelines for the development of individual projects. The participants will also be able to benefit from other ancillary services.
Support for start-ups will be geared to promoting economic development through the establishment of new and rapidly growing innovative companies with a potential to boost the general technological progress of the economy and open up new markets, thereby generating a qualitative increase in employment.
The SASF II will operate over an investment period that will last until the end of 2023.
The Fund of Funds have already established two similar instruments that are already operating on the market. Calls for proposals have been launched by New Vision 3, with a total budget of BGN 53.4 mln. and Innovation Accelerator Bulgaria AD, which operates with a total budget of BGN 30.5 mln.