Koinvest II is one of the subfunds of the umbrella fund Koinvesticinis fondas. The Koinvesticinis fondas operates as a limited partnership (LP). UAB Kofinansavimas, the subsidiary of Invega, is involved in the activities of the LP as the general partner, while Invega is the Fund’s investor and the limited partner whose contribution to the LP is financed from the INVEGA Fund.
What are the benefits?
This venture capital instrument is designed to improve the development of the Lithuanian venture capital market and the growth of new players in the venture capital market and so broaden the availability of capital for viable new Lithuanian companies which suffer from limited access to business funding facilities offered by banks.
What companies are eligible?
Together with private investors, the subfund invests in micro and small enterprises operating for up to five years since their registration and which have not allocated their profits. Investments are made only in potentially viable projects which could yield an expected return on investment and ensure a predictable exit from the investment.
What is the maximum amount?
The Ministry of Economy has earmarked up to EUR 11.6 million for the operations of the subfund from the resources of the Business Financing Fund financed from the European Regional Development Fund.
How does it work?
Investments are initiated by private investors which can be Venture Capital Funds or teams of at least three Business Angels. Investors entered on the List of Private Investors can put forward proposals for investment in viable companies to the fund manager at any time until the end of the investment period (31 December, 2020).
The subfund acts as the silent investor in the management of companies that it will invest in. The relevant provision is included in the shareholder agreements concluded with private investors which are negotiated with private investors on a case-by-case basis.