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Alfastar Ventures Announces Its New Evergreen EuVECA Fund

March 27, 2023
Alfastar Ventures Announces Its New Evergreen EuVECA Fund

Gugushev & Partners Law Office, Legal Counsel on the entirety of registration

AlfaStar Ventures, a registered alternative investment fund manager, founded by Desislava Gospodinova and Lyubomir Staykov, announces the first evergreen EuVECA fund in Bulgaria and the region. 

“The first evergreen EuVECA fund in the country follows EU Regulation №345/2013. Such Regulation introduces an EU-wide marketing passport, which alleviates the costs associated with authorisation and compliance with the AIFMD. In practice, such a passport makes cross-border investment more accessible. EuVECA funds can invest in unlisted companies with up to 499 employees and SMEs listed on a SME growth market. A significant advantage of the EuVECA label is that it enables managers to market their EuVECA funds not only to professional investors but also to high-net-worth individuals investing a minimum of EUR 100,000. EuVECA funds’ registration and supervision are overseen by ESMA “, shared atty. Victor Gugushev, Senior Partner at Gugushev & Partners Law Office, Legal Counsel on the entirety of registration. 

Traditionally the VC funds have been running in 10-year cycles and this have worked well for the industry so far. However, the changing economic environment is forcing many innovative companies to choose to delay their entry into the public markets, making the private equity world an ocean of opportunity for investment. As the world smartest people are looking for sustainable solutions for the benefit of everyone on the planet, new technologies and markets appear seeking maturity – a path that doesn’t fit with the traditional VC investment cycles. This is calling for the VC industry to adapt and be flexible to accommodate these features. 

“As an investor in sustainable, ground-breaking innovation we had to think about how we meet the investor return goals and at the same time accommodate the asset maturity timelines. The open-ended features of our fund have many benefits, amongst which the ability to choose the best time to exit investments to maximise the return, as well as being efficient with cost and flexible with liquidity”, shared Desislava Gospodinova. 

Combining the EuVECA framework with an open-ended vehicle makes this a unique and interesting product for investors who are seeking higher return in exchange for accepting higher risk and having long-term investment goals. Lyubomir Staykov, founding partner at AlfaStar Ventures, comments on why now is a great time for venture capital investing: 

“We are witnessing turbulent uncertainty and volatility in the public markets nowadays. Previously celebrated tech companies lost significant value because they became public too early. With no doubt we can define we’re now in a downcycle, which is exasperating the trend for many innovative companies, whether in the private equity growth stages or on the public markets. What we see is that early-stage ventures are less affected by the turbulence, making them good opportunities for investment. The other notable feature of the downturns it is often a time when many disruptive products, services and models are born, similarly to the previous one in 2008. This is why we chose to bet on early-stage innovative companies and be ready for the next growth cycle.”

With the completion of the registration and regulatory process, AlfaStar Capital is now ready and open for business. 

About AlfaStar Ventures: 

AlfaStar Ventures is an EuVECA AIFM (alternative investment fund manager), specialising in early-stage VC and based in Sofia, Bulgaria. Currently managing AlfaStar Capital EuVECA, an open-ended private venture capital fund. The team is focused on finding and supporting the AlfaStars - exceptional founders of early-stage start-ups and disrupting innovators, working together to bring great ideas into the world and transform them into successful, growing businesses. Balancing how businesses and individuals work in service of each other is their vision for achieving win-win outcomes.

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