The Fund of Funds will give BGN 170 million guarantees for corporate loans The Fund of Funds will provide guarantees of BGN 170 million, which will allow commercial banks to extend loans to companies on soft terms. This is the main measure envisaged to support the business because of the coronavirus crisis, it became clear at a briefing of the management of the fund. It is expected that this will commit a resource of up to BGN 850 million, which will support the companies with working capital. The money, which originates from EU funds, should become available to businesses within two to three weeks after negotiations with the banks are completed. But with the state structure, procedures were, at least until now, often slow. The Fund also envisages the use of some of its existing micro-enterprise and innovative business tools, which will be made available with lighter terms. The main support tool will be a portfolio guarantee. This is a new product for the fund and is similar to the one offered by the Bulgarian Development Bank. Under this scheme, the fund will provide BGN 170 million guarantees to commercial banks, which can provide a loan portfolio for businesses up to BGN 850 million in total.
Source: Capital (15.04.2020)

New BGN 35.6 million for start-up companies from the Fund of Funds The Fund of Funds (FF) has signed an agreement with Vitosha Venture Partners for the establishment of a new Fund for acceleration and initial financing for start-up companies. The Fund of Funds provides BGN 35.6 million from the Operational Program Innovation and Competitiveness, and an additional BGN 2.4 million are provided by private co-financing. Vitosha Venture Partners is the selected financial intermediary that will manage this resource. It will finance more than 100 new startups in Bulgaria with between BGN 30,000 and 2 million. The intermediary will also provide mentoring and strategic support to companies and will try to attract additional private capital. About half of the supported companies will participate in an accelerator program organized by the fund manager, and the team will make the remaining investments in startups in a more advanced stage of development. The intermediary is expected to make its first investments on the market this summer. There are already four equity and quasi-equity funds on the market. They will support nearly 400 small and medium enterprises with a total resource of BGN 190 million.
Source: 24 chasa (10.06.2020)

With guarantees from the Fund of Funds: Support for the business with cheap loans launched Businesses will have access to cheap working capital loans under a government anti-crisis measure aimed at helping the economy recover and private investment. The fund of funds is finalizing its work on the new guarantee product, which is being developed to alleviate the negative consequences of the pandemic with COVID-19 and to accelerate the activity. Through this instrument, small and medium-sized companies will have access to bank financing on easy terms in terms of interest rates and collateral requirements. The Fund manages a total of BGN 1.2 billion under four EU operational programs for the programming period 2014-2020. To help overcome the effects of the crisis, the company is working to redirect part of this resource to measures for timely liquidity support. of small and medium-sized enterprises, as well as equity instruments with easy access. Specific reliefs have been agreed for the various products offered by the Fund of Funds, but the idea is to expand the range of eligible companies as a whole as a result of negotiations with line ministries.
Source: Trud (16.06.2020)

The fund of funds promises more "cheap" money for companies A new anti-crisis financial instrument for small and medium-sized enterprises affected by the economic corona crisis is being prepared by the Fund of Funds. However, it is not yet open for application, but is only at the level of a procedure for selecting partner banks, which will last until July 17. Through this instrument, which will complement the other programs promised on April 14, but still difficult to use, the Fund will offer up to 80% guarantee on the amount of each loan, against which the bank will have to offer financing at preferential interest rates and reduced collateral requirements. The funds under the program have been redirected from another guarantee procedure for investment loans intended for small and medium-sized companies, and the report on its termination from July 2 states that all unused resources from the funds need to be provided for extraordinary additional flexibility of companies. in response to an "unprecedented crisis affecting public health". The total budget of the product is BGN 158 million from the Operational Program "Innovation and Competitiveness".
Source: economic.bg (06.07.2020)

The data company BizPortal raised EUR 1.7 million capital The Bulgarian startup in the field of business data BizPortal raised EUR 1.7 million in capital, the company confirmed. The bulk of the investment comes from the Morningside Hill Fund, one of four fund managers at the Fund, which manages and directs primarily public resources to start-ups. The smaller part is taken over by business angels. The data in the Commercial Register show that the new investors have acquired a 13.5% stake in the company, which means that it is estimated at EUR 12.6 million. This is the first raising of foreign capital by the company, which has so far developed entirely organically. For 2019, the company BizPortal, through which the company operates, has reported BGN 1.2 million in revenues, nearly 40% increase compared to a year earlier.
Source: Capital (09.07.2020)

The fund of funds will be able to participate in alternative investment funds The Government reaffirmed its consent for the participation of Fund Manager of Financial Instruments in Bulgaria EAD (Fund of Funds - FoF) in alternative investment funds. The current permit was in compliance with the new Regulations for implementation of the Law on Public Enterprises. It is necessary to ensure timely, effective and lawful implementation of the equity instruments under the Operational Program "Innovation and Competitiveness" (OPIC) 2014-2020. The FoF has a permit dated July 26, 2019, granted on the basis of an already repealed legislation. Based on it, the company participates in three alternative investment funds for the implementation of financial instruments. The alternative investment fund is a commercial company established jointly by the FoF - as a public investor, and private investors. The fund is managed by a financial intermediary selected through a public procurement. In accordance with the investment strategy to the financial agreement between the FoF and the Managing Authority of OPIC 2014-2020, five instruments for equity and quasi-equity investments are implemented through alternative investment funds. The total public resource set aside for this purpose is approximately EUR 150 million. Fund Manager of Financial Instruments in Bulgaria EAD is a company with 100% state participation in the capital. The rights of the state in it are exercised by the Minister of Finance. The Fund manages the financial instruments that are implemented under the programs co-financed by the European Regional Development Fund, the European Social Fund and the Cohesion Fund, as well as the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund in Bulgaria.
Source: investor.bg (13.08.2020)

The fund of funds invests over BGN 660 thousand in start-ups The Fund of Funds (FF) will invest a total of over BGN 660,000 (approximately EUR 340,000) in six start-ups. Each of the companies will receive between EUR 50,000 and EUR 100,000 of public resources to accelerate its development. These are projects in the field of new technologies and the introduction of innovations such as industrial 3D printing, modern financial technologies, outsourcing platforms, software products. Companies will use the money to expand existing and enter new markets, marketing and market validation of their concepts. The investments are made through one of the already operating funds for acceleration and initial financing - 'Innovation Capital Fund'. The structure is managed by the Innovation Capital Fund Manager and is supported by funds from the Operational Program 'Innovation and Competitiveness' 2014-2020 (OPIC), co-financed by the European Regional Development Fund. The fund aims to increase the survival prospects of start-ups with significant growth potential. The acceleration and start-up funds established by the FF are an instrument for equity and quasi-equity investment, which supports the creation and development of sustainable business models and develops the entrepreneurial ecosystem in Bulgaria.
Source: BIA (28.08.2020)

The fund of funds invests over BGN 660 thousand in several start-up companies The Fund of Funds (FoF) will invest a total of over BGN 660,000 (approximately EUR 340,000) in six start-ups. Each of the companies will receive between EUR 50,000 and 100,000 of public resources to accelerate its development. The projects are in the field of new technologies and the introduction of innovations such as industrial 3D printing, modern financial technologies, outsourcing platforms, software products. Companies will use the money to expand on existing and enter new markets, marketing and market validation of their concepts. The investments are made through one of the already operating funds for acceleration and initial financing - Innovation Capital Fund. The structure is managed by the Innovation Capital Fund Manager and is supported by funds from the Operational Program 'Innovation and Competitiveness' 2014-2020 (OPIC), co-financed by the European Regional Development Fund. The fund aims to increase the survival prospects of start-ups with significant growth potential. The acceleration and start-up funds established by the FoF are an instrument for equity and quasi-equity investment, which supports the creation and development of sustainable business models and develops the entrepreneurial ecosystem in Bulgaria. The OPIC funds set aside for the financial instrument are EUR 51.3 million (BGN 100.3 million). Managers selected by the FoF are required to supplement the public resource with private capital.
Source: investor.bg (28.08.2020)

The fund of funds established a fourth venture capital investment fund The Fund of Funds (FoF) and the financial intermediary Vitosha Venture Partners registered a joint fund for acceleration and initial financing - Vitosha Venture Partners - Fund I KD. The new company was established for a period of ten years and has a capital of BGN 38 million. The Fund Manager of Financial Instruments in Bulgaria announced that BGN 35.6 million is a public resource provided by the Fund. The funds are provided by the Operational Program "Innovation and Competitiveness" (OPIC) 2014-2020, co-financed by the European Union Regional Development Fund. The remaining BGN 2.4 million are private financing. By the end of 2023, Vitosha Venture Partners - Fund I will invest in 116 start-up companies at an early stage of their development. Small and medium-sized enterprises at the acceleration stage can count on financing between BGN 30,000 and 100,000. Between BGN 30,000 and 2 million will be given to those who are more advanced in developing their product or creating a prototype. The fund will work for the development of the entrepreneurial ecosystem in Bulgaria, supporting projects with a technological focus and high potential for sustainable growth.
Source: investor.bg (15.09.2020)

The fund of funds delays the scheme for COVID-loans by BGN 700 million The fund of funds, which boasts that it has a resource of BGN 1.2 billion from several European programs, is still negotiating the conditions for granting cheap loans to the companies affected by the corona crisis. The promised access to loans for BGN 700 million for September is not yet possible. "Within days we will finalize the first contracts with commercial banks, which will provide loans guaranteed by the fund to companies in difficulty," said CEO Vladimir Danailov during a webinar "The state in support of business", organized by the Agency for Small and Medium Enterprises. With a horizon "autumn 2020 - spring 2021" is another special measure for cheap loans intended for companies engaged in agricultural activities.
Source: Sega (07.10.2020)

BACB is the first bank to start granting guaranteed loans from the Fund of Funds The Bulgarian-American Credit Bank and Fund Manager of Financial Instruments in Bulgaria have signed the first portfolio guarantee agreement to support the liquidity of small and medium enterprises in response to the economic crisis related to the COVID-19 pandemic. The agreement was signed on October 12, 2020 by the Chief Executive Officer and the Executive Director of BACB, and signed by the FMFIB's Executive Director. Documents will be accepted from October 13, 2020 in all BACB offices. The guarantees under the scheme are completely free for the final borrower. The term of the provided financing is from 12 to 120 months, as there is no limit on the amount of each loan. The guarantee rate is up to 80% of the loan. Through the anti-crisis instrument, FMFIB will assume part of the credit risk of financial institutions arising from a portfolio of new loans for small and medium enterprises without sufficient collateral, but with the need for support in the current situation. The aim is to facilitate business access to continuing operations loans, including to meet liquidity needs or to overcome financial difficulties due to or aggravated by the pandemic. The tool 'Portfolio guarantee with a loss ceiling for overcoming the consequences of COVID-19' is funded by the Operational Program 'Innovation and Competitiveness' 2014 - 2020.
Source: 24 chasa (13.10.2020)

A state fund directs another BGN 42 million to companies through equity investments BGN 42 million additional anti-crisis resource from the Fund of Funds (FF) is already on the market. The funds are intended for liquid support of small and medium-sized enterprises affected by the COVID crisis. They will reach them through three private equity funds on easy terms, without the need to raise private capital outside the participation of the fund manager. The Innovation Capital Fund and Vitosha Venture Partners - Fund I accelerated and initial financing funds received an additional BGN 10.4 million and BGN 13.6 million, respectively. Thus, the available capital of each of them increased to BGN 41 million and BGN 50.7 million, respectively. The two funds invest up to BGN 100 thousand in companies in the acceleration phase and up to BGN 2 million in companies in the initial stage of development. The Morningside Hill Venture Capital Fund added an additional BGN 18 million to its investment resource and now has a total of BGN 75.3 million. It invests up to BGN 7 million in start-ups at an early stage of development, as well as in advanced companies with high risk profile. An agreement is to be signed with the fourth financial intermediary - New Vision 3, for whose fund an additional BGN 14.3 million are provided. With them the total resource of the fund will reach BGN 57.6 million for investments up to BGN 2 million in companies at an early stage of development. The additional resource of a total of BGN 56.3 million was provided by the Operational Program 'Innovation and Competitiveness' (OPIC) 2014-2020, co-financed by the European Regional Development Fund, the FF announced.
Source: Banker (14.10.2020)

New horizons for business development of companies are opening up The Bulgarian Stock Exchange (BSE) and the Fund of Funds (FF) have signed a Memorandum to encourage investments in prosperous Bulgarian companies, the stock exchange operator announced. The document covers joint initiatives to promote, train and stimulate dynamic and ambitious Bulgarian companies to accumulate capital to invest in their growth. The signing of the document took place during the first Round Table discussion with venture and private equity funds, held as part of the joint initiatives launched by the BSE and the Fund of Funds. During the Round Table, the FF presented to the participants the novelties in the financial instruments of interest to investors. BSE-Sofia informed about the opportunities that the BEAM growth market offers for venture and equity funds. Representatives of the institutions and participants in the Forum discussed different models of financing for growth; funding opportunities from public and private capital markets; strategic thinking behind the choice of funding opportunities; use of digital financial innovations to connect companies with available capital, etc.
Source: Banker (15.10.2020)

Bulgarian Stock Exchange (BSE) and the Fund of Funds signed a memorandum for encouraging the investments in prosperous Bulgarian companies. The memorandum comprises initiatives for popularisation, training and stimulation of dynamic and ambitious Bulgarian companies to raise capital for their growth. The document was signed today during the first round table with venture and equity funds as part of the joint initiatives launched by Bulgarian Stock Exchange and the Fund of Funds. The forum opened the deputy minister of finances, Ms Marinela Petrova, as a representative of the principal of both institutions. "Our efforts are concentrated in two directions. On the one hand, we are developing new forms of financing, suitable for start-up and innovative Bulgarian companies that would not receive a loan from commercial banks due to higher risk. On the other hand, we want to increase the financial culture of the entrepreneurs by offering them these new instruments. We are convinced that in this way we give Bulgarian business knowledge and the opportunity to choose the most appropriate way of financing, which is, after all, an important factor for sustainability.", commented Mr Aleksandar Georgiev, executive director of the Fund of Funds. "We believe in the potential of Bulgarian companies, which have a unique capacity for innovation, job creation and ultimately stimulating Bulgaria's economic prosperity, especially in the current global crisis situation. This common understanding made us join forces and together with the Fund of Funds to open new horizons for the successful business development of these companies.", added Assoc. Prof. Manyu Moravenov, executive director of Bulgarian Stock Exchange. During the round table, the Fund of Funds made the participants acquainted with the innovative financial instruments of interest to investors. The BSE presented the opportunities that the BEAM growth market offers to the venture and private equity funds. Representatives of the institutions and participants in the forum discussed different models to finance growth, funding opportunities from public and private capital markets, strategic thinking behind the choice of funding opportunities, how to use digital financial innovations to link the companies with the available capital, and they got acquainted with the leading practical experience of the technology company Biodit, which is to be listed on the BEAM market of BSE. The funds taking part in the round table were BlackPeak Capital, Capital Investments Fund, CEO Angels Club Endeavor Bulgaria, Impetus Capital, Innovation Accelerator Bulgaria, Innovation Starter Accelerator, Neo Ventures, Vitosha Venture Partners etc.
Source: BSE (15.10.2020)

The fund of funds distributed the additional resource of BGN 56 million to managers The Fund Manager of Financial Instruments in Bulgaria officially announced how it will distribute a total of BGN 56.3 million, which were set aside in July for additional investments in small and medium enterprises. The additional resource is expected to be managed by the institution's four existing fund managers: NV3, Morningside Hill, Innovation Capital and Vitosha Ventures. Until recently they managed BGN 165.5 million, of which BGN 147.4 million are public resources. Now both the total and the public amount will rise significantly. The money comes from the Operational Program Innovation and Competitiveness (OPIC), and is redirected from the planned and failed Technology Transfer Fund - a special type of fund that was to direct funds to companies separated from other companies or institutions. Now the condition for the new resource is that part of it goes to such spin-off companies, but most of it is for more urgent activities, such as companies that need funding during the coronavirus period. The largest part of the amount will be received by the Morningside Hill Fund - a total of BGN 18 million additional resource, bringing the total of its resources to BGN 75.3 million. Morningside Hill is also expected to receive the largest deals: up to BGN 7 million. So far, it has invested in two companies - Nasekomo (together with another fund manager at the Fund of Funds, NV3), as well as BizPortal. Innovation Capital, which is expected to have the largest number of transactions (220 in total), but with relatively small amounts, receives an additional BGN 10.4 million. Exactly BGN 13.6 million is also received by Vitosha Venture Partners, the last established fund to be launched. delayed due to documentation, but is already active. Both funds can invest up to BGN 100,000 in companies that need acceleration, as well as up to BGN 2 million in companies in the initial stage of development. The last part of the total amount - BGN 14.3 million - should go to NV3, the third fund of the founders of NEVEQ, which has so far invested in Nasekomo, CloudCart and fintech companies Paynetics, Phyre and Phos. The Fund of funds clarifies that the agreement with NV3 has not yet been finally signed. The fresh resource also comes with changed contract terms: fund managers will have to invest in more companies, but will also be able to invest more money. Currently, the number of transactions is relatively small and should be accelerated in the next 14 months, because each fund must make a certain number in each year of its existence. An additional plus is that according to the Fund of funds, managers will be able to invest the money from the new resource under the reduced regime, which currently applies to previous funds - but only until the end of this year, if there is no extension. It provides for direct investment, without the need to raise additional private capital, which is usually required to structure transactions.
Source: Capital (21.10.2020)

Fibank signed an agreement with the Fund of Funds for granting guaranteed loans with the possibility of providing an interest rate subsidy In order to support the activities of small and medium enterprises in the country in the economic crisis related to the pandemic of COVID-19, Fibank (First Investment Bank) signed a portfolio guarantee agreement with the Fund Manager of financial instruments in Bulgaria (Fund of Funds). The document was signed on 23.10.2020 by Chief Executive Officer (CEO) of Fibank and Executive Director and member of the Management Board of the bank, and on behalf of FMFIB was the Executive Director. The new instrument is called "Portfolio guarantee with a loss ceiling for overcoming the consequences of COVID-19" and is funded by the Operational Program "Innovation and Competitiveness" 2014 - 2020. Its purpose is to facilitate access of Bulgarian companies to financing for overcoming the negative effects caused by the current economic situation in the country. The loans will be granted on extremely favorable terms - a reduction of at least 25% of the standard collateral requirements or the price of the loan, and it is possible to apply a combined approach. In addition to guarantee coverage on loans, the Instrument also provides for the provision of an interest rate subsidy to the final customer under certain conditions. The guarantees under the scheme are free of charge for the borrowers. Companies can count on support in two areas: investment loans with the possibility of a grace period of up to 24 months and working capital loans with the possibility of up to 12 months of principal, including loans to overcome financial difficulties due or aggravated from the COVID-19 epidemic. The provided financing has a term of 12 to 120 months, for working capital financing up to 60 months, as there is no limit on the amount of each loan. The maximum annual interest rate on loans without collateral will be up to BIR + 7%.
Source: actualno.com (27.10.2020)

Fund of Funds and BIA launch a series of information events to help businesses It is expected that EUR 500 million of public and private resources will be attracted to the Fund of Funds (FF) by 2023. It started with a capital of EUR 235 million and has so far invested in 21 companies. The total investment, together with those of private investors, is EUR 11.2 mln. Nearly 50 companies are expected to receive funding by December. This was announced by Vladimir Danailov, director of the FF, during a working meeting at the Bulgarian Industrial Association (BIA). The meeting was attended by the chairman of BIA Radosvet Radev, the deputy chairman Stanislav Popdonchev and the general secretary Dobri Mitrev. Despite the funding opportunities provided by the Fund, Bulgarian companies are still poorly acquainted with the support instruments. Therefore, BIA and FF launched a joint cooperation to promote opportunities and easier orientation for companies. It is expected that at the end of January 2021 the first webinar for BIA members will be held, in which the various financial instruments for business support will be presented and the first successful examples will be presented.
Source: BIA (04.12.2020)