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The Fund of Funds and BICA Discussed Opportunities to Finance Business by Equity Investments

11.12.2020

The Fund of Funds and the Bulgarian Industrial Capital Association (BICA) discussed opportunities for financing business using equity investment instruments. The meeting between the two organisations was attended by Vassil Velev, Chairman of the BICA Managing Board, Dr Milena Angelova, Secretary-General of the Association, and Dobrin Ivanov, it's Executive Director on the one hand, and Vladimir Danailov, CEO the Fund o Funds, on the other.

The Fund already has four equity investment instruments. The financial intermediaries Vitosha Venture Partners, Innovation Capital and New Vision 3 invest in start-ups, while Morningside Hill invests in high-risk-profile business projects. The total amount of public resources available to the financial firms is EUR 104.2 million, and the intermediary funds top it up with private resources.

‘I am confident that together with one of the largest employer organisations, we can work to promote equity investments so that Bulgarian business is aware of the opportunities to finance good, sustainable ideas’, said the FoF Executive Director Vladimir Danailov.

The two organisations committed to cooperate in promoting the opportunities provided by the Fund of Funds and to work together on drafting a special business manual to provide some overall guidance and advice on choosing an intermediary, as well as on the application procedures and the documents required. At the beginning of 2021, the BICA and the Fund of Funds are expected to launch the first reach-out meetings with business representatives to present the financing opportunities.

According to the BICA Board Chairman Vassil Velev, Bulgaria needs improvement in corporate culture and in the attitude to entrepreneurship. ‘It is our goal to improve the business climate and to develop entrepreneurship. And I believe we can be good allies in that undertaking. We need to put good examples in the spotlight and make a success out of its current anonymity. This is the only way we can encourage young people to start their own business’, Vassil Velev went on to say.

The Fund of Funds manages public resources amounting to BGN 1.2 billion and can leverage it by more than BGN 2 billion of private financing. The FoF provides two types of financial instruments: debt instruments and equity investments.