News

The Fund of Funds Established a Fourth Alternative Investment Fund

Vitosha Venture Partners Fund 1 has BGN 38 million available for start-up acceleration and seed financing

14.09.2020

The Fund of Funds (FoF) and the financial intermediary Vitosha Venture Partnersregistered a limited partnership to run a joint acceleration and seed financing fund, Vitosha Venture Partners Fund 1. The new company was set up for a period of 10 years and has BGN 38 million in the capital.

That includes BGN 35.6 million in public funds provided by the FoF contributed by Operational Programme Innovation and Competitiveness (OPIC) 2014-2020, which is co-financed by the EU Regional Development Fund. The remaining BGN 2.4 million are privately sourced.

By the end of 2023, Vitosha Venture Partners Fund 1 will invest in 116 start-ups at an early stage of development. Small and medium-sized enterprises at the acceleration stage can rely on financing ranging from BGN 30 000 to BGN 2 million. Companies at a more advanced stage of developing their product offering or designing a prototype can get between BGN 30 000 to BGN 2 million.

The Fund will assist the development of the entrepreneurship ecosystem in Bulgaria by supporting technology projects with high potential for sustainable growth. It will provide access to seed financing, business advice, mentoring, operational and strategic support. About half of the supported companies will participate in an accelerator programme run by the fund manager, Vitosha Venture Partners.

The fund is already accepting applications for financing on its website.

Vitosha Venture Partners Fund 1 is an alternative investment fund, i.e. a collective investment undertaking which raises capital from multiple sources. The fund will be managed by a financial intermediary, Vitosha Venture Partners, selected through a public procurement procedure. The operational agreement between the financial firm and the FoF was signed on 5 June.

In accordance with the investment strategy attached to the financing agreement between the FoF and Managing Authority of OPIC 2014-2020, five financial instruments for equity and quasi-equity investments will be implemented through alternative investment funds. With the new fund, there are now four such funds up and running. The fifth one is currently at the contract award stage.

The total public resources allocated for this purpose amount to BGN 294 million. This will be complemented by private financing.

Financial intermediaries Vitosha Venture Partners and Innovation Capital manage BGN 38 million and BGN 30.5 million, respectively, available for investments in companies at an early stage of development. New Vision 3 and Morningside Hilloperate venture capital amounting to BGN 42.5 and BGN 55.9 million, respectively.