Business and technology accelerator is an entity for providing infrastructural support to innovation activity (under the Law on Innovation Activity), whose main function is making available office space, administrative and technical services, mentoring and training, consultancy services, providing initial funding and providing technical and expert assistance to overcome the organizational and strategic obstacles in the establishment of enterprises (“start-up” companies), including the period of developing a business idea, until the establishment and initial operation of the “start-up” company and its growth.
Conditions for financing
The maximum amount which will be financed by the Fund for establishemt, operating costs, management fees, and for funding the accelerated businesses is 500 000,00 Euros per set accelerator. This amount will be used for setting the accelerator, as well as for the phase of funding or financial support to accelerated enterprises.
In addition to technical and logistical assistance the accelerator provides financial assistance during the initial phase, up to a maximum of 22 000,00 Euros per project, and the possibility of additional funding, up to a maximum of 72 000,00 euros per project, intended for the best enterprises which will successfully pass through the acceleration phase. Further funding is possible only if the accelerator draws or invests its own additional funds. In the financing phase the accelerator will conclude financial support agreements with the enterprises, which will define the rights and obligations of both parties, and the type of funding that will be offered (direct risk finance, conditional loans, equity, mezzanine investments, royalty-fee loan, etc.).
The accelerator applicant can be an institution in higher education or research, or a legal entity established in accordance with the Company Law, and/or the Law on Associations and Foundations, and registered with the Central Registry of the Republic of Macedonia, owned by Macedonian nationals, or enterprise with pre-dominant Macedonian ownership.
The accelerator applicant should have a management team comprised of experienced professionals, in accordance with professional standards issued by the European Private Equity and Venture Capital Association and other similar organizations. As a team, they will be expected to act independently, but under the supervision and in coordination with the Fund. They should have relevant experience in supporting young enterprises.
Promoting entrepreneurship through support for individuals who want to establish an enterprise, as well as for already established enterprises (not older than 6 years) in their initial stage by providing educational, logistical and financial support. The business accelerators through the investment funds for early stage of development, can become dynamic tools for encouraging new ventures in various sectors, especially in ICT, connecting the talent, technology, capital and “know-how” in an effective framework.
The project duration for support to accelerators projects is 42 months from the date of signing the contract with the Fund. The selected applicant has a maximum of 6 months to set up the accelerator and 3 years to actively manage it.
The accelerator services for the initial phase should not be longer than 6 months starting from the date of entry of the person/enterprise in the accelerator.
- Profile of the management team and human resources
- Quality of the project
- Institutional capacities and sustainability
- Financial parameters
- Relevance of the budget
For additional information, please refer to the Instrument Rulebook.
The Fund shall finance up to 75% of the total project budget. Minimum of 25% should be provided by the Applicant for an accelerator. The maximum amount which will be financed by the Fund for establishment, operations, management fee and financing of accelerated companies is 500,000 (five hundred thousands) euro per established accelerator. This amount shall be used for the establishment of the accelerator, as well as in the financing phase i.e. in the phase of financial support of the accelerated companies.
„Innovation“ is an application of a new or a significantly improved product, technology, process or service, including significant improvements of technical characteristics, components and materials, built-in software, user orientation or other functional characteristics, or marketing methods or new organizational methods in operations, organization of work relations or relationships between a legal entity and environment.
„Product innovation“ is the application of a new or significantly improved product, but which is not a change of aesthetic nature or only sales of innovated products, manufactured or developed by another natural person or legal entity.
„Process innovation“ is application of a new or significantly improved method of production, delivery, storage and transportation, including significant changes in the technique, equipment or software, but not solely organizational and managerial changes.
„Technology“ innovation is application of new or significantly improved technology.
„Organizational innovation“ is application of new or significant changes in management structure or methods, for the purpose of improving the application of knowledge, quality of products or services, or increasing the efficiency of business processes in the relevant legal entity or entry into new markets.
„Marketing innovation“ is application of new marketing methods, including significant changes in the product design, packaging, distribution and promotion of such product and charge thereof.
„Service innovation“ is application of a new or significantly improved service.