Venture Capital
Investment Opportunities
Economy Sectors
For the recent decade market access for international companies has improved significantly. Bulgarians are eager to have greater access to European goods and services, and there are excellent opportunities for those companies willing to enter this expanding market. Excellent prospects for investments and business development respectively include the following sectors:
- automotive parts and services
- construction equipment and building products
- food processing equipment
- information technology
- telecommunications
- defense
- energy
- medical products
- pollution control equipment and services
- real estate construction projects
- textiles
- tourism infrastructure
Access to credit has increased. Financing of projects within the frame of EU sponsored programs is available. International financing of major infrastructure projects remains essential. It is expected that Bulgaria will receive approximately EUR 12 billion from different EU in structuring funds for the period 2007 – 2013
Private equity Market
In the Bulgaria, EU and much of the rest of the world, "private equity" means the equity financing of unquoted companies at many stages in the life of a company from start-up to expansion together with management buy-outs and buy-ins of established companies that have real growth potential, which can be enhanced with private equity support. "Venture capital" is a subset of private equity, covering early stages of funding from seed to expansion capital.
The key elements of private equity and venture capital are investments in unquoted companies, equity capital by nature, medium to long term and targeted at companies with growth potential, which can ultimately be realised through trade sales or flotation on the public markets.
What is our company looking for?
De Ferrari JSC essentially is looking for a company with high growth prospects and a good product or service with a competitive edge or unique selling point, although most important is a management team with direct experience of the product and its market.
The management team must demonstrate a strong commitment in addition to self confidence and a real ambition to turn their business plan into reality. The objective is to achieve growth of the companies in which De Ferrari JSC invests, and to exit via the sale of the company or its flotation on a stock market.
How can De Ferrari help?
Private equity is not just about providing a source of finance. In general De Ferrari aims to provide support – both financial and strategic – and to enable new and growth companies to develop into the major businesses of tomorrow. De Ferrari wants to become involved in the development of the companies in which invests. This involvement will vary from firm to firm, but day-to-day management control is not sought. Generally, however, we expect to participate through a seat on the board. This enables the De Ferrari to offer on-going support to the management on strategic and policy matters and to represent a broader perspective on corporate development based on our experience with other growing companies.
