Officially, Моrningside Hill is the new domestic investment fund that will start supporting scaling companies in late summer. This is the first fund in Bulgaria that is especially targeted at Series A and B investment.
“We are already in communication with more than thirty companies,” says the CEO Pavel Velkov, after signing a contract with the state structure Fund of Funds which provides 70% of the €34.25M investment capacity.
The fresh capital is set to be deployed to a broader scope of businesses – beyond IT and software. Моrningside Hill aims to support solutions that reduce the single cost of products, hi-tech, hardware, e-commerce, products and services from around the world, that haven’t been implemented in the region. The fund will back at least 16 companies.
Expectations from the companies
The fund has strict criteria to only look for the companies that have at least 50% of their assets or income in Bulgaria. Моrningside Hill is looking for companies with a clear roadmap that already have developed a working product or service, which has been validated through the market.
The fund must back at least 16 companies and in case of company exit, the money could be reinvested.
On the other side, The Funds of Funds has also set expectations: 7% return.
Here’s everything else you need to know in numbers:
|Public/Private capital||70% public from European Operational Program Innovation and Competitiveness, managed through Fund of Funds
|Tickets||€700K- €3.5M Series A and B|
|Type of investment||5-30% equity|
|Number of potential investments||minimum 16 companies|
|Тerm||10 years with the option to extend for 2 more|
|Focus||solutions that reduce the single cost of products, hi-tech, software and hardware, e-commerce, products and services from around the world, which haven’t been implemented in the region|
|Partners and expertise||Pavel Velkov, Financial and investment consultant and private investor with hedge fund expertise|
|Delyan Ganev, Risk Analytics at Baron International Growth Fund|