EIF IN
BULGARIA
Investing in the future of Bulgarian SMEs
Small and medium-size enterprises are the heart of the Bulgarian economy.
Representing 99% of all businesses and more than two thirds of the workforce, Bulgaria's 341,000 SMEs are responsible for driving innovation as well as spurring on growth, and their daily routine is what ensures the competitiveness of the Bulgarian economy. But to do that, they often need finance.
At the same time, as the smallest actors in the economy, they are often the hardest hit when the economy encounters turbulence, which is why it is so crucial for them to have financial options in order to maintain and eventually grow their businesses.
At the EIF, our mission is to improve access to finance for small businesses across the EU. In addition to building a sustainable venture capital ecosystem through dedicated financial instruments in Bulgaria, we have been supporting Bulgarian SMEs using a broad range of instruments, including many tailored to the needs of the Bulgarian market and designed with the Bulgarian government and local authorities.
As a result, we've been able to support more than 29,000 Bulgarian businesses, ranging from companies specialising in automotive refinishing and artificial climbing structures to students re-training for new careers, making sure they have the financial fuel they need to pursue their ambitions.
Our intention is to continue to extend this type of support to the Bulgarian market, making access to finance easier as we collectively move towards a greener, digital and more inclusive Europe.
Success stories
Velislav Tsenov
Success stories
Velislav Tsenov
“In my first job, I always had to do techie things, but I never dedicated myself to IT professionally. I knew I wanted to move into this space and when this course popped up, I thought ‘this is a sign’,” says Velislav Tsenov from Vratsa, who graduated with a degree in IT and business administration from the American University in Bulgaria. “I’ve always been keen on programming and at undergrad I wanted to do computer science, but there was a lot of misalignments, so I dropped it and focussed instead on business management.”
This auspicious course on software engineering was offered at Telerik Academy and included a deferred tuition payment plan, guaranteed in part by the EU, that allows students to focus on their 6-month programming bootcamp and worry about repayment only 6 months after graduation. With a professional qualification as junior software developer, Velislav got a job within the Academy’s partner network, working on front-end engineering and setting up websites. “I actually had four offers, took one, and still work here.”
Sector Education
Purpose Re-skilling
Bul Greece
“In the 90s, when the restrictions imposed by the communist regime were lifted, my father set up the company and started to import things from Greece—pretty much everything and anything. At the time, there was a deficit of everything, so he would import whatever people wanted, from Fanta to heaters or paint” explains Mihal Sotirov, sales director and co-director of Bul Greece, the family business his father set up.
The company eventually expanded into trading different products, but today its main focus is car refinishing—the materials used in fixing up cars after an accident, dealing with dents, paintwork, and coating for the purposes of both decoration and protection. In 2017, the company constructed and moved into a new warehouse. “The new facilities make us more energy-efficient, cooler in the summer, warmer in the winter, which means less expenditure on energy. It’s also more modern and more convenient for our work, with better loading and unloading capacity for the trucks and all-round better accessibility.”
Sector Automotive
Purpose Building a warehouse
Antoaneta Stefanova
“Changing careers is the kind of thing you do once in a lifetime. It does require a lot of effort, it’s a complete change in daily routines, re-working everything around you. I can’t say it was an easy step, but I was very determined,” explains Antoaneta Stefanova, who initially pursued a career in the culinary world, but transitioned to computer programming. “I started with a book, learning the basics of coding, but then I went for this course to pursue it more seriously.”
Taking advantage of a deferred tuition payment plan guaranteed in part by the EU, Antoaneta signed up for a 6-month programming course at Telerik Academy and landed a job shortly upon completion. With demand for software engineers and IT-related skills growing, she’s on an upward trajectory. “I’m just starting out as a junior software developer, looking to pick up more knowledge, more technical skills, and move into a more senior role. With new technologies emerging all the time, you need to constantly update your skillset to keep up.”
Sector Education
Purpose Re-skilling
Walltopia
“We are happy to share our passion for the product with investors who can drive value beyond money. As a rising eastern European company, we’re pleased to see increased venture capital activity supporting innovation in Bulgaria”, said Ivaylo Penchev, CEO of Walltopia. One of the world's foremost manufacturers of artificial climbing structures, Walltopia was founded in Bulgaria in 1998 and now has offices in the USA, UK, Canada, Germany, Austria, Russia and Asia Pacific.
Walltopia offer different types of climbing walls with variations in use (indoor or outdoor) and purpose (climbing gyms, school and universities, shopping centres, parks, hotels, recreational areas and many others), and their services range from architecture and design to assembling, maintenance and inspection. They also employ the highest number of engineers, designers and full-time technicians in the industry, enabling them to remain at the forefront of innovations with the latest available technology.
Sector Manufacturing climbing walls
Purpose Product development
Key figures
Figures as of December 2024
Over
of EIF financing
Transactions with financial intermediaries
Equity investments since inception
Guarantees support since inception
made available for
Bulgarian businesses
Mandates in focus
The EIF continues to deploy capital in Bulgaria under a wide range of strategic programmes and mandates. Below are brief summaries of our main initiatives in Bulgaria.
InvestEU
The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It is helping to mobilise private investments for the EU's policy priorities, such as the European Green Deal and the digital transition. The InvestEU Programme brings together under one roof the multitude of EU financial instruments previously available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
RCR
The EIB’s Risk Capital Resources (RCR) is the core pillar of the EIF’s equity activity. It has enabled us to pursue our equity strategy in the venture capital and growth segments for more than 25 years. In 2024, RCR accounted for about 24% of our equity activity, committing €1.7bn to financial intermediaries.
EFSI
The European Fund for Strategic Investments formed part of the EU's Investment Plan for Europe, launched by the European Commission in 2015. EFSI addressed market gaps in financing - whether in infrastructure, research, energy efficiency or risk finance for SMEs – and mobilised private investment into these areas. Through EFSI the EIF deployed €10.5bn in resources of the European Commission, the EIB and the EIF to improve access to finance for SMEs and small midcaps.
REPowerEU
The EU launched REPowerEU in 2022 to reduce dependence on fossil-fuel imports and accelerate the green transition. To support the plan, in October 2022, the EIB Group developed a package of measures focussing on renewable energy, energy efficiency, electricity networks and on deepening its engagement in green innovation and breakthrough technologies. Under REPowerEU, the EIF will invest €4.5bn by 2027 through EIF equity products.
RRF Bulgaria - Equity
RRF Bulgaria Equity is a €180m mandate financed by the Bulgarian Recovery and Resilience Facility (RRF). The Republic of Bulgaria entrusted the EIF with this mandate to provide equity financing for growth, innovation and investments in climate neutrality and digital transformation to the Bulgarian undertakings that have been most affected by the long-lasting negative economic impact of the COVID-19 crisis. The EIF-managed fund of funds will invest in country-focused or regional funds and facilities that will, in turn, support technology transfer projects, SMEs and mid-caps to foster innovation and the transition to the knowledge economy.
RRF Bulgaria – Debt
In 2023, we set up a new guarantee mandate with the Bulgarian government, connecting a Bulgarian RRF budget of €150m to the InvestEU Member State Compartment. Indicatively, half will be dedicated to promoting the competitiveness and growth of local enterprises, while the other half will focus on climate action, energy efficiency and renewable energy. By helping local businesses to weather the negative effects of the crisis and continue on their growth path, this instrument will focus on addressing the structural weaknesses of the Bulgarian economy, such as lack of liquidity and solvency risks faced by the local enterprises, ultimately contributing to greater resilience, increased productivity and sustainable growth of the Bulgarian economy.
EGF
The European Guarantee Fund was created by the EIB Group with contributions from Bulgaria and other Member States to protect companies struggling in the crisis caused by COVID-19. With almost €25bn in guarantees, the EGF allowed the EIB and EIF to swiftly offer companies, mostly SMEs and mid-caps, access to loans, guarantees, asset-backed securities, capital and other financial instruments. The EGF forms part of the package of recovery measures put in place by the EU, with the objective of providing a total of €540bn to support the hardest hit sectors of the European economy.
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