How to obtain funding for co-financing projects up to 300,000 euros?

The Croatian Agency for Small Business, Innovation and Investment today presented the Entrepreneurial Capital for Innovation and Entrepreneurship project – Project Component II: Fund for Encouraging Investment in Early Stage Capital (Seed Co-investment Fund) financed by a loan from the World Bank.

The presentation was organized at the HUB385 incubator for the development of technological entrepreneurship – Center for Creativity and Innovation, where a multitude of creatives and start-ups have already gathered, either in the pre-market phase or already positioned and recognized in their field.

At the presentation, all participants had the opportunity to hear detailed information about the Fund, targeted users and investors, as well as the application process for co-financing projects. Eligible projects will be co-financed in amounts ranging from a minimum of 30,000.00 euros to a maximum of 300,000.00 euros, with project durations of up to 24 months. Applications will be accepted from April 13 to September 1, 2016.

The presentation of the Fund for Encouraging Investment in Early Stage Capital was opened with introductory words by the Deputy Minister of Entrepreneurship and Crafts, Mario Turalija. Carlos Piñerúa, Head of the World Bank Office for Croatia, addressed the attendees with a welcoming speech, describing the challenges faced by start-ups in the international market, and Boris Guina, Deputy CEO of HAMAG-BICRO, briefly reflected on the position of start-ups in Croatia. Nikola Dulčić, Project Manager for Entrepreneurial Capital for Innovation and Entrepreneurship at HAMAG-BICRO, presented the project and the functioning of the Fund in more detail. Mihovil Barančić, a representative of CRANE, briefly shared the experiences of the Croatian network of business angels.

Mario Turalija, Deputy Minister of Entrepreneurship and Crafts, opened the event with these words:

– The Fund for Encouraging and Investing in Early Stage Capital is not only welcome but necessary. With 2.5 million euros, our goal is to strengthen this sector by providing smaller amounts of venture capital financing alongside market investors, such as business angels and incubators. This synergy is needed if we want to develop a competitive economy.

Carlos Piñerúa, Head of the World Bank Office for Croatia, emphasized in his introductory remarks:

– Innovative small and medium-sized enterprises (SMEs) are an important factor in achieving faster and sustainable economic growth, especially in achieving stronger exports. Therefore, it is extremely important to support the development of the venture capital financing industry and to help innovative SMEs place their products not only in the Croatian market and the markets of the European Union but also beyond. We hope that the Fund for Encouraging Investment in Early Stage Capital will enhance financing mechanisms in early stages and help newly established companies turn their ideas into products or services.

Boris Guina, Deputy CEO of HAMAG-BICRO, encouraged start-ups to be proactive with the following words:

– Start-ups have been the ones bringing innovative products to market in all previous technological revolutions. Therefore, we can confidently say that start-ups are the drivers of economic development in every country. In today’s globalized world, Croatia cannot and must not ignore economic trends. For this reason, significant efforts have been made in recent years to develop an institutional framework to support the innovation process by investing public money in innovative small companies. The path from idea to market requires specific financing needs, and that is why HAMAG-BICRO is an indispensable stop on the path of every start-up.

The Fund for Encouraging Investment in Early Stage Capital provides co-financing for innovative entities in the small economy in the Republic of Croatia through conditional loans granted alongside investments from private investors in the equity of the investment recipients. A total amount of 2.5 million euros is planned for the Fund’s investment from the budget of the Entrepreneurial Capital for Innovation and Entrepreneurship project of HAMAG-BICRO, financed by a loan from the World Bank.

The goals of the Fund are:

• To encourage investment in the equity of innovative SMEs in the Republic of Croatia by eligible investors for the purpose of further development and/or commercialization of innovative products or services.
• To provide support for the development of innovative SMEs and newly established companies to the stage where they are well positioned to accept investments from private venture capital funds.