BESCO – The Bulgarian Startup Association published the results of a survey on the main problems which Bulgarian startups are currently facing and a list of measures for the economic rehabilitation of the industry. The analysis is based on the responses of 100 startups and/or innovative companies from 27 different industries with total annual revenue of 155 million leva.
One-third of the startups need a rescue capital of between 50 000 and 200 000 leva. Another 31% need between 20 000 and 50 000 leva to survive the crisis. The enterprises express a clear need for financing by the banks and the state and direct monetary easing through various financial instruments. 20% believe that the government should become a client of their products and services. As a potential step in this direction companies view changes in the public procurement and tender laws. Such refinement will allow startup and innovation companies to participate in public tenders of a smaller scale.
Another proposed measure is to ease the heavy procedures through which the allocated money from the Fund of Funds reaches the financial intermediaries and through them – the end beneficiary, the startups. The funding provided by VC funds becoming a higher governmental priority is also among the proposed concrete instruments in support of the business.
BESCO’s analysis is carried out in collaboration with Edit.bg – Economical Development Through Innovation and Technology, BVCA – the Bulgarian Venture Capital Association, Endeavor Bulgaria, ABLE – the Association of Bulgarian Leaders and Entrepreneurs and the Bulgarian Small and Medium Enterprises Promotion Agency with the Ministry of Economy.
The results and proposals have been addressed to the Bulgarian government, the European institutions, and other related decision-making bodies that could take action in the development of adequate measures to overcome the economic challenges lying ahead. You can find the full text of the letter (in Bulgarian) here.
In the middle of April, BESCO also announced a joint initiative with the Bulgarian Stock Exchange (BSB). It aims to support the startups offering products or services with a potential contribution in limiting the adverse effect of the COVID-19 pandemic. A specialized platform will promote their activities by directing attention to their specific projects. In the forthcoming days, these companies will receive help in seeking investments and new markets through the BSB network. You can see the first included companies on the site of the initiative fightCOVID19.