Bratislava, November 21, 2019 - Slovak Investment Holding (SIH) and three fund managers - Vision Ventures, CB Investment Management (Crowdberry Group) and Zero Gravity Capital (Limerock Advisory Group and 0100 Ventures) - are launching financial cooperation to support start-up businesses in Slovakia.
Overall, SIH has earmarked a total of €68 million for fund managers. Each has been allocated a maximum amount of €22.7 million. The exact contractual amount for each fund will depend on its performance.
The aim of these funds is to support the nascent stages of start-up enterprises in the hope they will, in turn, demonstrate the potential to launch new and innovative products and services on the Slovak market. 90% of SIH resources will focus on companies that were set up less than 3 years ago and operate outside the Bratislava region. The remaining funds will support companies that were set up less than 5 years ago and operate within the Bratislava region.
“We are pleased that, after investing in various areas of the Slovak economy, we are able to devote special attention to the crucial sector of start-ups in Slovakia. Our support for these companies should enable them to produce new ground-breaking solutions and generate ideas that will provide a vital boost to the further development of the Slovak startup sector and to the overall development of the economy. A crucial factor in this field is an in depth evaluation of various business ideas and for this reason I am very happy we are working with industry’s top experts“, explains Ivan Lesay, CEO of SIH.
Managers will support start-up firms by means of equity or quasi-equity investments. The investment period of each fund commences with the signing of investment contracts in the fourth quarter of 2019 and continues until the end of 2023. After the contracts are signed, managers shoulder responsibility for selecting projects, implementing investments, and exiting businesses to ensure an optimal return on investment. Fund managers will also be required to comply to the maximum extent possible with the relevant recommendations, procedures and codes of Invest Europe.
Gabriel Horváth, Managing Director of Vision Ventures commented: “Our company is seeking exceptional entrepreneurs who possess the courage and passion to break through established rules and ways of thinking. Our ambition is to foster outstanding Slovak projects at the beginning of their journey, where the capital investment and our active support and expertise will enable them to grow exponentially and achieve global success.”
Daniel Gašpar, Managing Director of CB Investment Management stated: “Our task is to ensure optimal value from the capital entrusted to us in a responsible and transparent way, while at the same time serving the people of this country and promoting the creation and growth of innovative companies. Hopefully, many of these companies will thrive and go on to become key growth components of the economy and help to diversify it. Together with access to the growth capital, our in-house expertise and international know-how, these young companies and entrepreneurs will be able to build up the value of the company after the initial investment.”
Marek Zámečník, Managing Director of Zero Gravity Capital: “By joining forces with Limerock Advisory, we have set up a strong partnership that aims to stimulate small and innovative businesses in the Slovak market while developing entrepreneurial talent regions beyond Bratislava. Both our entities (0100 Ventures and Limerock Advisory) have built up expertise in domestic and international startups for over 8 years. Our management team possesses a wide array of know-how, ranging from investing in startups, building community activities such as coworking centers, as well as an extensive repository of knowledge in the field of mergers and acquisitions of large companies.”
Information about SIH
SIH is a 100% state-owned joint stock company. Its primary goal is to support strategic public and private investments in Slovakia in the areas of infrastructure, energy efficiency, waste management, social economy, health, cultural and creative industries and small and medium-sized enterprises. SIH draws on European Structural and Investment Funds to make its investments. Projects are financed exclusively in repayable form, i.e., using financial instruments instead of grants.