Investment & Fund Management

A new EUR 40 million venture capital equity fund, the Enterprise Innovation Fund (ENIF), has been launched to address the critical lack of venture capital financing for innovative early-stage companies in the Western Balkans. Managed by South Central Ventures (SCV), the fund aims to provide essential funding to start-ups and early to expansion stage SMEs, particularly in the Information and Communications Technology (ICT) sector. The fund includes a dedicated 'seed pocket' that focuses exclusively on pre-seed and seed companies across the region, with average investment sizes ranging from EUR 0.5 million to EUR 1.5 million, targeting approximately 45-55 companies.

The establishment of ENIF is part of the Western Balkans Enterprise Development & Innovation Facility (WBEDIF), which seeks to cultivate a vibrant venture capital ecosystem in the region. The fund pools resources from various institutional and private investors, including the European Commission, the European Investment Fund (EIF), and the European Bank for Reconstruction and Development (EBRD), as well as local governments and agencies. The first closing of the fund has secured EUR 25 million, with expectations for a second closing to reach the full target of EUR 40 million.

The launch of ENIF is seen as a significant step towards enhancing private sector development and innovation in the Western Balkans, addressing the complex financing needs of local SMEs. The initiative is expected to not only provide financial support but also contribute to capacity building and the exchange of know-how, ultimately fostering increased entrepreneurship in the region.