The Fund of Funds (FoF), with a budget of BGN 47.1 mln. financed by Operational Programme ‘Innovation and Competitiveness’ (OPIC) 2014—2020, is the second equity instrument structured by the FMFIB.

The tender for the selection of a manager of the Venture Capital Fund was launched in May. A total of 4 applications were received from the following tenderers within the stipulated deadline 25 June 2018:

1. Morningside Hill Consortium with the following partners: Pavel Velkov, Ekaterina Velkova. Todor Mutafchiyski, Delyan Ganev and Dunavski Konsult EOOD;
2. Opportunity Capital Management with the following consortium partners: Bilyan Balev, Stefan Vasilev, Eleonora Sokolarski, Matthias Kolan, Lucas Hulsmann;
3. Consortium Balkan Capital Ventures with the following partners: Alexander Nikov, Velin Kiradzhiev and Ivan Grancharov; and
4. Consortium BlackPeak Ventures with the following partners: Konstantin Petrov, Zlatolina Mukova, Alexander Terziyski, Yordan Zarev, Ivaylo Gospodinov, Rosen Ivanov, Kiril Ivanov and Angel Stefanov.

The FMFIB will shortly complete the verification of the circumstances disclosed and draw up a shortlist of eligible applicants.

The main criterion for the selection of applicants who have submitted tenders is their experience in this type of equity investment and raising private equity financing from professional investors. The applicants will be expected to raise at least 30 % of the total amount to be invested in final beneficiaries. The 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 that the financial manager has greater flexibility in raising private funds. The business plan, organisational structure and control systems proposed will also be evaluated.

Total public and private financing is expected to reach approximately BGN 67 mln. The funds are intended for equity investment in high tech and innovative SMEs at an early stage of development. The amount of the investments to be made 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 Venture Capital Fund is thus expected to boost the development of the Bulgarian economy, enhancing the competitiveness of local companies and improving their corporate management and capacity.

For further information and enquiries, please call (+359 2) 801 4050 or send an e-mail to office@fmfib.bg