Technology startups from Moldova, Romania, Bulgaria, Croatia, Serbia and Slovenia will be able to receive funding from the GapMinder Fund II venture fund, in which the EBRD will invest 10 million euros.
The European Bank for Reconstruction and Development (EBRD) announced this, noting that its investments are aimed at supporting the development of the venture capital ecosystem and digitalization in the EBRD countries. Specifically, the EBRD said it is allocating 10 million euros to GapMinder Fund II, a venture capital fund managed by Romanian venture capital firm GapMinder. The EBRD's investment supports one of Romania's first institutional managers of local venture capital funds in building a diversified portfolio and providing capital to early-stage technology portfolio companies, which will ensure the continued growth of Romania's technology and venture capital ecosystem. GapMinder Fund II will make equity and quasi-equity investments in early-stage technology companies in the EBRD's regions, predominantly in Romania, but also in Bulgaria, Croatia, Moldova, Serbia and Slovenia. The EBRD states that the lack of long-term risk financing and the absence of a developed venture capital ecosystem remain key barriers to the development of early-stage innovative companies in the Bank's investee countries. Supporting the growth of venture capital and regional fund financing is therefore critical to ensure that early stage companies can thrive and bring new technologies and business models to EBRD markets. "We are proud to partner with GapMinder to support the growth of high-potential technology companies in the EBRD regions. Our investment will contribute to the development of a sustainable venture capital market in our economies, and will accelerate their digital transition," said Anne Fossemalle, EBRD Director of Equity Funds. "We are excited to continue contributing to the development of the start-up ecosystem in Romania and South Eastern European countries. Our vision and strategy, as well as proven good execution and performance, are validated by the fact that we raised our successor fund during a challenging 2023. We are grateful for the high level of commitment and trust invested in us by the EBRD and by all our long-term investors, many of whom accompanied us along Fund I as well," said Dan Mihaescu, GapMinder Founding Partner. The EBRD is a leading institutional investor in Romania. To date, the bank has invested more than 10.9 billion euros in 524 projects in Romania, focusing on financing infrastructure, boosting private sector productivity and further developing the financial sector and capital markets. The EBRD is also Moldova's largest institutional investor. Last year alone, the EBRD directed 350 million euros to Moldova, supporting energy security, improved infrastructure and connectivity, and access to finance for the private sector, with a particular focus on SMEs. Overall, to date, the EBRD has invested more than 2.2 billion euros in 170 projects in the country, with sustainable infrastructure accounting for more than 40% of its portfolio. // 26.02.2024 - InfoMarket.
