The Co-investment Fund is a venture capital instrument of the Ministry of Economy, managed through limited partnership (LP) fund Co-investment Fund II, which was established by UAB Investicijų ir Verslo Garantijos (Investment and Business Guarantees) (INVEGA) together with its subsidiary UAB Kofinansavimas in 2017. UAB Kofinansavimas, the subsidiary set up by Invega, will participate in the activities of the LP as the general partner and Invega will be the investor of Co-investment Fund and the limited partner whose contribution to the LP is financed by the INVEGA Fund.
What are the benefits?
The instrument is designed for the development of the Lithuanian venture capital market, growth of new participants of the venture capital market, thereby increasing capital availability to new prospective Lithuanian companies that have limited access to business financing offered by banks.
What companies are eligible?
Micro, small and medium enterprises.
What is the maximum amount?
The Ministry of Economy earmarked for the investments made by the fund EUR 9,28 million from Business Financing Fund funded by the European Regional Development Fund.
How does it work?
Together with private investors, Co-investment Fund will invest in micro, small and medium enterprises which have not allocated their profits. Investments shall be made into potentially viable projects able to create the expected investment return and ensuring easily predictable exit from investments.
Private investors, including venture capital funds or at least three teams of business angels, will be investment initiators able to keep a regular flow of proposals to invest into prospective companies to the fund manager.
The fund will participate as a silent investor in companies in which investments will be made. The relevant provision will be included in shareholder agreements concluded with private investors and will be negotiated on a case-by-case basis.
More information for private investors and companies eligible for funding is available on the website of UAB Kofinansavimas http://www.koinvest.lt.