The Bulgarian Development Bank has established a Capital Investments Fund
08 October 2018Bulgarian Development Bank registered a capital investment fund, in line with its mission to support the Bulgarian business and its strategy for 2017 – 2020. The Fund has an equity of BGN 65 million and will participate in the capitalization of SMEs and start-ups aiming to increase their business competitiveness, to provide capital for research and development, to increase the production capacity, to raise funds prior to accessing the regulated markets and to ease the absorption of EU funds.
The Fund could invest up to 10% of its equity into one enterprise or BGN 6 million, thus acquiring a maximum of 34% stake. SMEs, start-ups, entrepreneurs, social enterprises and innovations will be targeted as a priority. The Fund will also provide advisory services on the investment opportunities and capital structure of SMEs.
According to the Bulgarian businesses, there is sufficient funding to set up start-ups but lack of growth capital. As per the European Investment Fund’s data, in Bulgaria as well as all over Europe, deals with early-stage starting business are prevailing while there is almost no expansion capital during the growth phase. Through this new subsidiary, which will start its operations early next year, BDB will have another tool to support the Bulgarian businesses and to fulfill its mandate to bridge the market gaps.