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Equity investment for Innovation - TechnoBIT Venture and Beskid Technology Accelerator
Published on 31 January 2020
Poland
Śląskie
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
TechnoBIT Venture, co-funded by the European Regional Development Fund (ERDF) in the 2007-2013 programming period, addressed a regional market gap for access to finance for innovative ideas. Target recipients were both natural and legal persons as well as small and medium-sized enterprises (SMEs) in the information technology, medicine, metal industry, environmental protection, tourism, furniture, 3D printing, plastics, electronics and automation. Thematic scope of the investments was in line with the development strategies of the region as well as in line with the general direction of the European Union at that time. There was always a separate limited liability company created as the result of capital investment. The fund manager, Regional Development Agency in Bielsko-Biała (ARRSA) provided equity instruments investments combined with non-financial and advisory support such as consulting the innovative idea, risk assessment and profitability and market analysis. The implementation of the project involved two components - the pre-incubation stage and the equity investment of the newly established company. The funds obtained after the completion of the investment (ie the exit from the investment) went to ARRSA for the purpose of continuing operations of the same nature.
On the base of that rule Beskid Technology Accelerator was established in 2014 as a seed capital fund made from capital exits from the companies created with the TechnoBIT Venture.
On the base of that rule Beskid Technology Accelerator was established in 2014 as a seed capital fund made from capital exits from the companies created with the TechnoBIT Venture.
Resources needed
EUR 3.6 million Operational Program resources + at least 50% from private co-investors at project level
Equity investment within the TechnoBIT Venture Fund was made by ARRSA in an amount of less than 50% of shares of the company to be developed. The maximum amount of support was €200,000.
Equity investment within the TechnoBIT Venture Fund was made by ARRSA in an amount of less than 50% of shares of the company to be developed. The maximum amount of support was €200,000.
Evidence of success
15 companies supported with equity investment – creation of limited liability companies with TechnoBIT and 3 with BAT, an additional EUR 3 million in private investment was attracted and 83 new full- time equivalent jobs created as at May 2015.
Potential for learning or transfer
TechnoBIT Venture project was designed to follow this trend and to show the opportunities that equity instruments give to the companies or to-be-entrepreneurs. The investments made within the project were re-invested with the Beskid Technology Accelerator Seed Capital Fund that was established in 2014 and is still operating. TechnoBIT Venture – knowledge and capital for innovation” – was designed as a EU co- financed project from European Regional Development Fund. It was implemented under the Operational Program “Innovative Economy” measure 3.1 “Initialization of innovative actions”. Regional Development Agency applied for fund to Polish Agency for Enterprise Development, who was the operator of funds distributed by the Ministry of Regional Development and was approved for the project implementation in 2008.
This practice shows a successful implementation of public-funded financial instruments that raise private investment, with a high potential for transfer to regions or countries
This practice shows a successful implementation of public-funded financial instruments that raise private investment, with a high potential for transfer to regions or countries
Good practice owner
Organisation
Regional Development Agency in Bielsko-Biała
Poland
Śląskie
Contact
Agence Web