Venture Capital Fund: BGN 67 mln. To support investment in innovative Bulgarian companies

The Fund of Funds launches a call for the selection of a financial intermediary for the Venture Capital Fund


The Fund of Funds (FoF) has launched a tender for the selection of a financial intermediary for the implementation of its second equity instrument financed by Operational Programme Innovations and Competitiveness (OPIC) 2014–2020 — the Venture Capital Fund (VCF).

The total amount of the public funds to be disbursed by the FoF is BGN 47.1 mln. The selected financial intermediary will be expected to supplement available financing by raising at least 30 % of the total amount of funds invested in final beneficiaries as a sign of commitment to the success of the fund and the sustainability of its investments. The Fund Manager of Financial Instruments in Bulgaria (FMFIB) will provide an opportunity to the future financial intermediary to raise the necessary co-financing both at Fund level and at the level of final beneficiaries to ensure by way of ensuring the financial manager has greater flexibility in raising private funding. At the same time, this will ensure that a minimum amount of additional financing and support is available to companies to enable them to achieve their growth and development forecasts. Thus, the total amount of public and private financing will exceed BGN 67 mln.

Within this budget the selected manager will be tasked with the management of an equity investment fund targeting high-tech and innovative micro-, small- and medium-sized enterprises (SMEs) at the earliest stage in their development. The amount of the funds to be invested by the Venture Capital Fund per company will range between BGN 1.5 mln. and BGN 7 mln. A special feature of the investment fund is that it will provide additional strategic support and mentoring to the companies approved for investment by the Fund Manager. The main evaluation criteria in the selection of applicants will be experience with this type of equity investment and raising private financing from professional investors, along with the business plan, organisational structure and control systems proposed.

According to Svetoslava Georgieva, Executive Director of the FMFIB EAD: ‘The expected positive effects from the operation of the Venture Capital Fund include the development of an entrepreneurial ecosystem in Bulgaria by enhancing the competitiveness of local companies and improving their corporate management and capacity’.

Detailed information about the tender for the selection of a Fund Manager of the Venture Capital Fund and the relevant documentation is available on the FMFIB webpage, section Buyer Profile:

The deadline for the submission of applications is 25 June.