Czech goverment planing Risk capital SEED fund with up to CZK 3 bln and CzechEkoSystem to improving consultation services for innovative start-ups and increase their competitiveness.
Czech government planning to run a risk capital SEED fund with up to CZK 3 bln. Investment are primarily based on European Union funds from Operating Program Business and Innovation. The state budget and private investors will also contribute to this seed fund. For the first run CZK 660 mil is planned to be released.
Here is 7 key points of program:
1. Initial investment will more then CZK 5 mil
2. Minimum of 30% funding will be from private sector
3. Investment in time frame of 5 yeas, after share will be sold out and reinvested
4. Not strictly focused, looking for
Highly Innovative Ideas
5. Will be backed by system of consultants
6. It's count with 50% will be bad investments investments
7. There will be a court of businessmans which will select supervisor for investment.
According to official Press Release similar seed funds already operate in
France, Italy, Slovakia, Poland and Hungary ?
PS: A large discussion started in many medias about other countries having HANDS OFF policy from such high risk VENTURE investments. Especially many comments see 50% as very optimistic (and vague) target and there is a concerns about to grow innovations under supervisors umbrellas. Today Angels have a 1-2 Year investment period and for many industries 5 yeas investment horizon is long even for Venture capitals. Many countries like Switzerland also prefer just invest only in support services.
to improving consultation services for innovative start-ups. There is planned overall an CZK 260 mil investment, CZK 60 mil is available in first run. This program is run by