Innovative Micro, Small and Medium-sized Enterprises (SMEs) in the technology sector in their early and growth phases of company development frequently have difficulties finding capital providers to help them grow, as they are often considered too risky. The Risk Capital Fund provides the funding source needed to finance such companies in order to foster innovation and stimulate the knowledge-based economy.
The allocated amount under the JEREMIE Initiative to the Risk Capital Fund is EUR 21 million or 70% of the targeted capital of the instrument. The fund manager will attract at least 30% of private investments, thus, total funding should result to EUR 30 million. The fund will undertake risk capital investments in early stage companies, taking the form of either equity or quasi-equity.
Funds’ investment period: until the end of 2013.
Maximum investment amount: up to EUR 1.5 million over any period of 12 months.
- The applicant entity must be must be registered under Commerce Act of Bulgaria.
- The applicant must be an SME;
- The applicant or the investment to be financed must not be in the sectors stipulated by Article 1, paragraphs 2-6 of Reg. 800/2008.
Furthermore, investments are subject to restrictions in relation to SMEs active in the following sectors:
i. Arms production and trading;
iv. Human cloning;
v. Genetically Modified Organisms.
Selected Financial Intermediaries
Neveq Capital Partners – is an established team based in Bulgaria and operating on the Southeast European market. Investment experience of the General Partners and the team includes NEVEQ LP, a fund of similar size and strategy, raised in 2007. The new fund under JEREMIE, NEVEQ II, has a target size of at least EUR 30 million and focuses on early and late stage transactions in Bulgarian companies able to demonstrate market leadership capacity and scalability beyond their domestic market.
The fund focuses on information technology, biotechnology, green energy and other sectors with high growth potential. Investments into individual portfolio companies will typically be in the range of EUR 0.5 million – EUR 1.5 million per annum, with a maximum of EUR 4.5 million per company.
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