04.10.2021
A NEW PLATFORM HELPS BULGARIAN STARTUPS WITH FUNDING
Funding up to EUR 50,000, business development consultations and contacts with potential partners on a global level can be obtained by Bulgarian start-up companies thanks to the newly created 5x Labs platform. Behind the idea are some of the co-founders of the first venture capital investment funds in Bulgaria - NEVEQ 1 and NEVEQ 2 and the first investment funds in Bulgaria, which operate on the principle of an open capital investment platform - Neo Ventures and Neo Gravity. They bring together dozens of "business angels" and experts at home and abroad, who choose whether to get involved and help a specific startup, opened by 5x Labs.
The initiative is also backed by the international consulting company EY (Ernst & Young), which will support entrepreneurs with mentoring and professional advice in the field of taxes, law, corporate finance and accountability. This is possible thanks to the EYnovation™ program, which helps start-up and fast-growing Bulgarian companies to develop their financial processes and prepare for the requirements of international markets.
The selection of startups is done in two phases - a preliminary review and official presentation of 5 selected business startups by their creators before a 5-member jury. According to the regulation, the composition of the jury is not permanent and it meets in accordance with the theme of the presented projects. However, the evaluation criteria are rigid and have been developed in accordance with a specific methodology. They allow an accurate assessment of startups on several factors: a clear value proposition, the possibility of growth, an established model for recurring revenue, market impact, competitive advantage, team experience and the presence of previous investors. The maximum funding that participants can receive is 50,000 euros, and it can vary according to the needs and prospects of the business. Upon successful presentation, the jury may decide to support more than one participant in the respective round.
“We use our contacts with dozens of business angels in Bulgaria and around the world to raise funding for start-up businesses with strong teams and concepts with the potential to enter the global market. No less important, however, is that we offer our experience and expertise to serial investors, entrepreneurs and professionals from different industries and geographies, as well as our network of contacts. That is why every time the jury includes representatives of different investment funds, business leaders from different sectors, marketing and media professionals", explains Pavel Ezekiev, co-founder and managing partner in the open-end investment funds Neo Gravity and Neo Ventures, which is the main driving force behind the new 5x Labs platform. "Our goal is to give a chance and support to good business ideas and teams in different sectors, not just the usual IT and fintech projects, which have traditionally been the focus of attention in recent years," he added.
"From our work with start-ups over the years, we have seen that they need expert help and advice at an early stage of development, especially when it comes to international operations. In the EYnovation program, we combine the knowledge and experience of our specialists with our enthusiasm to help startup companies. Our goal is to lay a solid foundation for sustainable growth in the future. From our experience so far, we see that this is a significant plus in talks with business clients and investors at a later stage," said Victor Mitev, associate partner at EY.
There are already four startups awarded by 5x Labs. Two of them - Cheese the Queen and Sofia Electric Brewing Co, are producers of high class gourmet products with an international market - nut cheeses and kraft beer. The third supported concept is for hyperbaric oxygen therapy in combination with biotechnology to be used in the healthcare and wellness industry. The jury of 5x Labs also awarded the company DoggoCollar, which will offer on the international market smart dog collars, which collect various data about the pet such as eating habits and activity and have a built-in GPS.
The next 5x Labs presentation session of five nominated startups before a 5-member jury will be held at the end of the year, and the pre-selection is permanently open, and those interested can send their presentation to office@neoventures.net.
