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The Bulgarian Fund of Funds Allocates €272M for the VC and PE Ecosystem

Bulgarian Fund of Funds
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  • The Bulgarian Fund of Funds reveals that out of a total of €600М, which have been allocated under the new Program for “Competitiveness and Innovation in Enterprises” (PCIP) for 2021-2027, €272M will be reserved for venture capital and high-risk financing. 
  • A significant portion of the new financial resources will be used to support businesses in the country’s less developed regions. 
  • To ensure the most effective allocation of funds, the FoF will start holding market consultations, giving interested parties the opportunity to provide feedback on the structure of financial instruments.


“The Bulgarian Fund of Funds has supported 200 startups, covering the entire life cycle of a company from ideation to more established SMEs through five financial intermediaries, in which we are the main investor – Innovation Capital, Vitosha Venture Partners, NV3, Morningside Hill, and Silverline Capital. Currently, the amount invested stands at approximately €50M, and there are additional €75M, which are expected to bе allocated by the end of 2023,” Lazar Petrov, Director of Financial Instruments and Operational Programmes, shares for The Recursive. 

“The Competitiveness and Innovation in Enterprises” (PCIP) for 2021-2027, also sets €131M for grant financing, which can be combined with the instruments for risk financing. The fund managers will aim to mobilize at least €200M of additional private capital. 

What are the specifics of the new programme?

The new Program for Competitiveness 2021-2027 aims to foster economic growth and progress through financial instruments that target specific objectives. Here are the three main directions:


  • Enhancing the capacity for scientific research and innovation, and the adoption of modern technologies to drive progress.
  • Advancing digitalization by introducing Industry 4.0 technologies and harnessing its benefits.
  • Supporting sustainable growth and competitiveness of small and medium-sized enterprises.


During the new programme period, the Fund of Funds will continue supporting companies at all stages of development, from initial idea to maturity. A venture debt instrument will also be made available to mature projects in the fields of innovation and internal research and development activities for businesses. 

Read more:  Polish bValue Growth Fund Fuels Tech Innovation in CEE with €90M Cap

In addition to the €75М for equity financing, which the five fund managers of the Bulgarian FoF will have to invest by the end of the year, another €33M are also still available under the “Recovery” Program in the form of soft loans for small and medium-sized enterprises, accessible through partner banks throughout the country.

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Elena is an Innovation Reporter at The Recursive, an online media dedicated to the emerging tech and startup ecosystems in Southeast Europe. She is keen on sharing the innovation stories that shape the regional ecosystem and has a great interest in fintech, IoT, and biotech startups. Elena is currently finishing her Bachelor's Degree in Business Administration and Political Science at the American University in Bulgaria.