Programme on financial engineering instruments (PFEI) for micro, small and medium-sized companies for the period 2009-2013
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The programme aims at enabling the development of venture capital market in Slovenia by combining various financial resources and improving the access to favourable financial assets for innovative SMEs in a form of equity and debt financial instruments.
Micro, small and medium-sized companies (hereinafter: SMEs) are of crucial importance to successful economy in Slovenia and are a very important factor of economic growth. SMEs are often faced by problems of acquiring financial resources to invest into their development in early phases of the enterprise operation as well as in the phase of the enterprise development and growth. As a result, also in the Cohesion policy in Slovenia a part of funds was intended to help SMEs.
Under the priority orientation »Promoting of entrepreneurship« the implementation of various forms of financing is planned together with guarantees envisaged for SMEs. In November 2009, the »Programme of financial engineering instruments for SMEs in the RS for the period 2009-2013« (PFEI) was approved of total value equalling EUR 48,847,334. However, due to high interest in SMEs these funds were increased by additional EUR 13.8 million in October 2010.
The entire programme will be implemented with the Slovene Enterprise Fund (SEF) taking on the role of a holding fund and including equity financing instruments (venture capital) and debt financing instruments (guarantees, guarantees with subsidized interest rate, loans and mezzanine capital). Equity financing instruments represent capital investment to private venture capital companies (hereinafter: PVC) operating in Slovenia to invest the acquired funds in promising, innovative and fast-growing SMEs. In a later phase, these companies will also provide support with mezzanine capital.
The most visible effects of the PFEI Programme are:
- financial support only granted via qualified financial intermediaries,
- bigger volume of favourable financial assets for the entrepreneurial sector,
- multiplication of public funds,
- circulation of financial assets (revolving system),
- venture capital market development via private venture capital companies,
- rationalisation of the financial support system for SMEs in Slovenia,
- no negative impact on the competitive position of SMEs in Slovenia,
- more support to projects of high market potentials,
- less costly preparation of project application,
- support to projects and investments of higher values,
- better orientation to innovative, development-oriented companies,
- expected results in supported SMEs.
In March 2010, the Slovene Enterprise Fund published the first public tender for venture capital companies (hereinafter: VCC) with almost EUR 34 million tendered.
Four projects were approved (national contribution 49%: EUR 20,563,157, total value of planned investments by VCC: EUR 42,004,415), namely: Meta Ingenium, VCC Murka, the First Fund and the Fund of Business Angels. Two additional projects of SCS and STH Ventures are in the process of approval (participation of the RS: EUR 6,174,000, total value of VCC: EUR 12,600,000).
