If, for the development of your company, you need more financial resources than your friends or banks can offer, or if you have not received any subsidies from structural funds, there are other possibilities for financing your idea.

Within the Operational Programme Enterprise and Innovation, new activities are currently being prepared that are focused on the use of new non-subsidy financial instruments to support the innovative projects of companies in the start-up and growth phases of business associated with a higher level of risk during implementation. These instruments will not take the form of credit or subsidies, but will concern the entry of investors’ capital into a given enterprise with the aim of its further development.

New financial instruments for the support of innovative projects

1. Venture-capital funds

The principle of a fund is based on the entry of an investor (fund) into a selected enterprise by increasing its basic capital, whereby the enterprise obtains needed resources. Following a pre-determined period, the fund’s capital share is sold and the investment is returned to the fund. The main goal of these funds is for their investments to appreciate, and then to sell and invest in other opportunities. More information on venture-capital funds.

One of the possibilities for implementation of this area is the utilisation of financial instruments within the Jeremie joint initiative. This concerns an instrument of the European Commission and European Investment Fund for the support of venture capital, micro-loans and guarantees for small and medium-sized enterprises. It is currently in the preparation phase, including mapping of the situation in the Czech Republic with the aim of determining the needs of small and medium-sized enterprises in this area.

2. Business angels

Business angels are investors (individuals), who are sufficiently capable of investing their own assets into enterprises and projects that they find interesting. They are not looking for only greater income and minimum risk, but primarily for areas in which they can actively engage and use their experience and contacts to support the growth of the company in which they have invested. More information on business angels.

Business angels can be associated in networks which are support within the Prosperity Programme.

CzechInvest’s task is thus to support the establishment and development of business angels networks and to inform small and medium-sized enterprises of the existence of these non-traditional sources of financing and to mediate contacts between firms and these entities.

Related activities:

Since 2005, CzechInvest has organised Financial Forums for Small and Medium-sized Enterprises with the aim of showing participants various alternative paths to financing.Investment Forums for Small and Medium-sized Enterprises will build on the groundwork laid by the Financial Forums, allowing selected enterprises to present their business projects to investors in attendance, who will assess the projects and can offer possible means of financing.

Furthermore, entrepreneurs can participate in specialised seminars and study publications concerning issues associated with alternative financing.

Another part of CzechInvest’s activities is comprised of Banking Roundtables, which bring together representatives of financial institutions, investors and other entities that have an impact on the offer of financing for entrepreneurs.