SPACE BRIDGE FUND is a public-private early stage technology seed funding instrument (private capital equity investments and a non-refundable public grants).
The Fund intends to invest in start-ups realizing R&D projects in Proof of Concept and Proof of Principle stages by providing them initial non-equity financing before the start-up company is incorporated (“pre-equity investment stage”) followed by the private capital equity investment (20%) leveraged with a public grant (80%) (“equity investment stage”).
The Fund’s objective is to combine the potential of an existing Professional network of Mazovia Cluster ICT, The Fund Strategic Partners, Key Technology Advisors and The Fund Managers in space industry and space-oriented scientific and academic institutions with The Fund Managers’ investment expertise in order to identify R&D projects with high commercial and international growth potential, provide them financing, build value and sell with a substantial capital gain for Private Investors.
Space Bridge Fund intends to invest in 20 early stage technology companies in the areas of Space and Satellite Technology and technologies using the space industry resources for development of products and services, which can be applied in other industry sectors. The funding for selected start-ups - up to 250,000 €.
The Fund Deployment Strategy:
1.Initial screening of 460-700 R&D projects throughout The Fund’s investment period of (4) four years;
2.Full due diligence of 40 R&D projects;
3.Initial R&D financing in “pre-equity investment stage” of 25 R&D projects;
4.Equity investments into 20 early-stage companies.
The total targeting capital commitments to the instrument: 10.476.000 EUR (44.000.000 PLN)
General Partner (private capital commitment): 2.096.000 EUR (8.800.000 PLN) which comprises a minimum 20% of the total instrument capitalization required to enable the public-private investment instrument.
Evidence of success
- Equity investments into 20 early-stage companies.
- Financial and non-financial support for R&D projects.
- New jobs (employment growth).
- Space sector/technology development.
- Building an ecosystem of venture capital funds.
- Strengthen collaboration among space-oriented scientific and academic institutions as well as business organisations and companies in the Central, Eastern and Western Europe.
Potential for learning or transfer
The Space Bridge Fund is based on the BRIdge Alfa programme in Poland. BRIdge Alfa is an initiative launched by the National Centre for Research and Development aimed at private investors which meet the criteria of SMEs and have experience in incubating innovative ideas. In the competition, companies can apply for non-returnable support for the creation of investment vehicles, the so-called Alfas (one of them is Space Bridge Fund). The ideas for technology companies with high commercialisation potential will be selected through the Alfas.
The Alfas are designed to enable market entry for innovative projects, carry them through the proof-of-principle and proof-of-concept phases, and provide them with services necessary to transform into spin-offs. Investment vehicles should provide researchers with comprehensive support for their ideas as well as business and legal assistance. Inventors remain co-owners of patents and companies established.