What are the opportunities for financing and support of start-up small and medium enterprises from the Bulgarian Fund of Funds?
The Fund of Funds is a structure for targeted distribution of public funds through specialized funding schemes that works with intermediaries.
Lazar Petrov, Director of the Financial Instruments and Operational Programs Department at the Fund of Funds, commented on the topic for the Bulgarian National Radio.
Tools for starting business initiatives
“If we talk about starting business ventures with great potential, requiring financing that they could not obtain through bank lending. We work directly, providing financing, but for this part of our instruments we have selected four currently operating financial intermediaries. Four investment funds have been created, and a fifth is about to start working, which is looking for this type of promising business ventures and provides them with high-risk capital, acquiring a minority share from the companies that are being created, the so-called start-ups”.
These investment funds aim to get a return by acquiring shares in such startups - providing them with the so-called “mentoring services”, have a network of contacts to help the startups in question to find sales of their products and services outside Bulgaria and over time are looking for opportunities to realize participation in this company.
