A new investment fund will support the Bulgarian start-up ecosystem. The venture will be a joint project between The Bulgarian Fund of funds, which manages BGN 1.2 billion under four operational programs and the financial intermediary NEVEQ Management, which will manage the investment process in start-ups.
The funds provided by The Fund of funds will amount to BGN 37.4 million, in addition to this amount, NEVEQ’s partners will invest their own funds as well as attract co-investments so the total amount available for investments will increase to BGN 53.4 million.
According to its business plan, the new fund will invest in 45 start-ups. The fund’s investment in a single company is expected to range from EUR 200,000 to EUR 1 million against which the investor will receive around 20% – 35% of the company’s equity. The fund will have a strategic focus on companies developing solutions and products in the segments of artificial intelligence (AI), blockchain-based solutions, fintech, and shared economy platforms such as Airbnb, Snapgoods, etc.
NEVEQ has a long history, as it is the first venture capital fund in Bulgaria, set up in 2008, as well as one of the first funds specialising in investing and supporting IT and tech companies in the Balkans. The fund has two generations of start-up investments – the first one from the fund set up in 2008 with private funds solely, the second one – with JEREMIE funds.
Since then, NEVEQ has been involved in a number of strategic deals in Bulgaria, such as the sale of equity stakes from:
- Semantic software developer Ontotext to Sirma Group Holding for EUR 4.2 million;
- Software company that provides advanced shopping, merchandising and inspirational travel solutions Vayant Travel Technologies to the US-based PROS Holdings for USD 35 million;
- Financial risk assessment company FinAnalytica to the French BISAM;
- Data center operator 3DC to the English TeleCityGroup;
The deals are an example of how а partnership between the founders of a start-up and the VC funds could turn the company into a leader in its segment and attract a reputable international investor in Bulgaria.
