Business Angel Funding Facility – 3rd Call


(in execution)

The 3rd Call for Expression of Interest is open from April 24 2019 until June 3 2019 at 18h00 (GMT/UTC +0 hours).
Under this Call, IFD will select fund allocations to business angel firms (BAFs) amounting to €1.673.432.

These allocations are realized through equity loans through Funding Facility to BAFs by IFD “Fundo de Capital & Quase-Capital” (FC&QC) aiming at investments in SMEs in the Azores and Madeira NUTS II regions.

This Call is funded by the European Regional Development Fund (ERDF) allocations for the Azores and Madeira regions under the Portugal 2020 Partnership Agreement.

The maximum allocation to each BAF is the maximum of 85% of total investment commitments by the BAF or €325.000, with the remaining amount being provided by private investors.
Total funding to SME is expected to exceed €2 million by combining public and private funding above mentioned.

IFD selects applicants after a full assessment and due diligence process following the Portuguese Law of Public Procurement.
Applications should be submitted through the procurement platform VortalGov. This Call has been published in the Official Journals in Portugal and in the European Union (Portuguese Diário da República and the Official Journal of the European Union).

Complete documentation and information is disclosed in this website.

Main funding conditions of FC&QC

  • Type of funding: equity loans through Funding Facility to BAFs;
  • A total maximum of €325.000 financing for each business angel firm;
  • Funding period ends in December 31 2020.

Eligible investment priorities at the Investment Firm level

  • Azores: IP 3.1 – To fund company formation and early stages (pre-seed, seed, start-up)
  • Madeira IP 3.a.1 – To fund company formation and early stages (pre-seed, seed, start-up)
  • Madeira IP 3.b.1 – To improve skills of SME for the development of new business models, internationalization and increasing the competitiveness of enterprises
  • Madeira IP 3.c.1 – To improve skills of SME in terms of development of new products and services

Significant conditions precedent applicable to Investment Firms

  • Firms should be controlled by Business Angels
  • Business Angels are individuals certified as such by IAPMEI
  • Purpose of the Business Angels firms: equity and quasi-equity investments in SME
  • Investment commitments made through equity and quasi-equity should amount at least to 70% of the total firm’s commitments
  • Build-up / consolidation and restructuring deals are non-eligible

Significant eligibility criteria applicable to Final Beneficiaries

  • Final Beneficiaries must be certified as an SME by IAPMEI, and
  • Have not been operating in any market, or
  • Have been operating in any market for less than 7 years following their first commercial sale or
  • Require an initial risk finance investment which, based on a business plan prepared in view of entering a new product or geographical market, is higher than 50% of their average annual turnover in the preceding 5 years

Significant documentation (Portuguese):

  • Programa de Concurso (download);
  • Programa de Concurso – Anexo I Aviso de Concurso (download);
  • Programa de Concurso – Anexo II Instruções DEUCP (download);
  • Programa de Concurso – Anexo III Ficha de Identificação (download);
  • Programa de Concurso – Anexo IV Critérios Seleção (download);
  • Programa de Concurso – Anexo V Modelo Declaração 57 (download);
  • Programa de Concurso – Anexo VI Modelo Declaração 81 (download);
  • Caderno de Encargos (download);
  • Caderno de Encargos – Ficha de EV (download);
  • Caderno de Encargos – Anexo I Tabela de Adjudicacão (download);
  • Caderno de Encargos – Anexo II Instrucoes Ficha de EV (download);
  • Caderno de Encargos – Anexo III Instrucoes Ficha de BF (download);

Porto, April 24, 2019