“By directing part of the funds administered by the Ministry of Transport and Communications to the co-investment fund, we aim to encourage private investors to take notice of start-ups and provide new innovative businesses with an additional opportunity to take loans under acceptable conditions for them. We invite enterprises that were established no earlier than 5 years ago and have not distributed their profits to use the fund’s financing to develop transport services and products. Especially those that would reduce vehicle noise and CO2 emission”, says Chancellor of Transport and Communications Ramūnas Dilba.
Allocating these funds is aimed at facilitating the development of new innovative products and services for start-up businesses and also filling a financing gap and placing more focus on enterprises in their earliest stages (product development, business model validation). Such enterprises rarely attract the attention of private investors and have difficulties in acquiring financing from banks.
The fund’s total investment in micro- and small enterprises is limited to EUR 0.8 mln. and in innovative enterprises – EUR 1.6 mln. The total investment in a medium-sized enterprise is limited to EUR 1.6 mln. According to the conditions of the co-investment fund’s instruments, investment can be made in the implementation of projects of enterprises that fulfil the requirements and carry out activities that meet the conditions for financing and that are capable of generating the expected return on investment.
The first investment of this fund was made in a start-up developing electric vehicle charging infrastructure. After receiving financing of EUR 600 000, the company established in 2019 has been developing smart electric vehicle charging solutions for businesses and network operators by using cloud software.
According to the Chancellor, developing the electric vehicle charging infrastructure is one of the priority areas and will be essential for reaching the target set by the EU to gradually switch to climate-neutral economy by 2050.
The co-investment fund of the Ministry of Transport and Communications comprises the investments of the 2014–2020 European Union fund. The measures of the action programme will be carried out until the end of 2023. This financial instrument is managed by Invega along with Kofinansavimas UAB established under Invega for venture capital fund management and effective implementation.
More information on the fund and where and how to apply for financing can be found at https://www.coinvest.lt/en/homepage
