1. Technology Transfer Fund:
Financial Instrument to Advance Innovation in Bulgaria
Svetoslava Georgieva
Executive Director, Fund Manager of Financial Instruments in Bulgaria
16 October 2018
Sofia Tech Park

2. FINANCIAL INTERMEDIARIES
The Fund of Funds in a nutshell
European Structural
& Investment Funds
National
Co-financing
Operational Programmes
ESIF FUND OF FUNDS
FMFIB
PRIVATE INVESTORS
FINANCIAL
INSTRUMENTS
FINANCIAL INTERMEDIARIES
FINAL RECIPIENTS

3. Operational Programmes Financial instruments Financial intermediaries
Mobilising public & private resources to achieve policy goals through market-driven solutions
ESIF
State budget
Financial instruments
FIs are important tool towards achieving EU policy objectives
Combine public with private resources & expertise
Recipients supported via market mechanisms
Revolving funds, i.e. public funds are reused for same goals
Clear advantages over grants
hence: an increasing portion of EU budget would be channelled to FI
Operational Programmes
Fund of funds
FMFIB
Private investors
Financial instruments
Financial intermediaries
Fund of Funds
A strategic decision to implement nation’s FIs via investment vehicle, i.e. the FoF
Currently, envisaged FoF balance sheet totals EUR 606 mln.
Expected leverage would boost the cumulative investments to EUR billion
Final recipients
© FMFIB, 2018

4. A broad product offering with a strong emphasis on supporting startups and companies geared for growth
OPIC
Seed, Acc. & Start-Up Fund (SASF)
EUR 51.3M
OPIC
Mezz Growth Fund
EUR 38.5M
OPIC
VC Fund
EUR 24.1M
OPIC
Technology Transfer Fund (TTF)
EUR 30M
45%
STARTUPS
SMEs
GROWTH
OPIC
Portfolio guarantees
EUR 70M
OPIC
Microloans
EUR 7.6M
OPHRD
Microloans
EUR 25.6M
OPHRD
Guarantees for microloans
EUR 8.7M
OPRG
Urban Development Fund
EUR 189 M
OPE
Waste
EUR 26.6M
OPE
Water
EUR M

5. Select previous employers in financial services
FMFIB team balancing private and public sector expertise
FMFIB
Coordination Unit, 3 FTE
Front Office, 12 FTE
Middle Office, 9 FTE
Back Office & Legal, 12 FTE
Select previous employers in financial services
Front Office combines experience in PE funding, corporate finance, investment and commercial banking
in structuring and implementation of financial & policy instruments related to economic and regional development
supported by seasoned teams of risk, legal, compliance, audit, finance, PR and marketing professionals
The team features professionals with graduate degrees from INSEAD, Harvard, LSE, Pantheon- Sorbonne University, Pantheon Assas, Paris Dauphine, Salford, Osnabrück, University of Freiburg, Bocconi, University of Mannheim, etc. 5

6. Investment Ecosystem Knowledge PROs Fund management Deal Origination
Experts
Labs
Companies
PROs
Tech Parks
Research Labs
TTOs
© FMFIB, 2018

7. OPIC equity and quasi-equity investment scope
OPIC Investment strategy re. equity investments
OPIC (quasi) equity investments
FI scope based on lessons learned & identified market inefficiencies
Budget amounts to EUR 150 mln.
IS envisages four types of investment funds across the PE/ VC spectrum
Priority axis I EUR 30 M
Priority axis II EUR 115 M
FMFIB
€ 30 M (max. 90%)
€ 51.3 M (max. 90%)
€ 24.1 M (max. 70%)
€ 38.5 M (max. 70%)
Technology Transfer Fund
Seed/ Acc. Fund
Venture Capital Fund
Mezz./ Growth Fund
€ 33 M
€ 57 M
€ 34 M
€ 55 M
Our role
FMFIB structures the products and selects fund managers in an open & transparent procedure
FoF would be a limited partner
The vehicles would attract private capital at fund level and/ or via co- investments
SMEs & Large
SMEs
SMEs
SMEs
(3S)
Mechatronics
CleanTech ICT Life Sciences and BioTech
Generalist
Generalist
Generalist
Note: The funding amounts provided are gross amounts including management fees.
© FMFIB, 2018

8. Technology Transfer Fund: Policy Rationale
Foster innovation
Commercialise & internationalise R&D
Bridge the gap between science and business
Support R&D
Collaboration between companies and research organisations re. new or improved processes & products
Increase/ establish innovation capacity & resources
Commercialisation of R&DI re. new products, processes, & technologies
Acquisition, management and commercialization of IP
© FMFIB, 2018

9. Technology Transfer Fund
Technology Transfer Fund: Business Rationale
TTF would provide equity and quasi-equity financing
FoF commitment may be provided to one or more investment funds
TTF investment strategy should be aligned with the policy rationale
Fund of Funds
€ 30 М
Private investors
Technology Transfer Fund
Fund manager
€ 3.3 М
€ 33.3 М
Investees
FoF max. participation: 90% of fund size
Fund life: years, incl. investment period of ~5 years
Risk sharing/ distr. cascade: TBD (pari-passu / asymmetric return)
SME
Large corporates
Start-ups
Spin-offs
© FMFIB, 2018

10. Recreational Industries
Sector Focus
ICT
NanoTech
Organic products
Health
Cultural and creative industries
BioTech
Recreational Industries
Mechatronics
Pharma
CleanTech
© FMFIB, 2018

11. ELIGIBLE INVESTEES UNIVERSE
Selected Characteristics of Target Investees
Co’s collaborating re. R&D
Tech brokers
Innovative/ tech Co’s
Knowledge based Co’s
R&D related spin-offs
Co’s conducting R&D
ELIGIBLE INVESTEES UNIVERSE

12. Selected Features of Eligible Investments
EU-based projects, but benefits retained in BG
Projects “in progress”
Project costs up to € 5 M
Arms-length IP transfers only

13. Coordination Unit: Contact details:
Angelina Todorova, MA Oxon, MIC
Head if Unit
Tel.:
Dochka Vassileva, PhD
Senior Expert “Strategic Investments”
Tel.:
Petar Mihaylov
Senior Expert “Investments in SME Sector”
Tel.:
Contact details:
Fund Manager of Financial Instruments in Bulgaria
1606 Sofia, Bulgaria Totleben Blvd
© FMFIB, 2018