Start date: January 1, 2012 End date: December 31, 2015
Project budget: $300,000
Implementer: Crimson Development Foundation (CDF)
Establish and manage a specialized fund to support innovation and business start-ups, addressing the access to finance constraint faced by innovation-focused entrepreneurs.
- Development of specialized financial products to support business innovation in Macedonia including purchase order financing, term loans; revolving lines of credit; and convertible debt.
- Client/investment screening, analysis and selection.
- Fund monitoring and administration.
To address the unique needs of innovators and start-ups, CDF has allowed for flexibility and creativity in the financing structures. For example, a combination of financing products might be utilized, or the loan terms and conditions may be tailored to fit the opportunity, sector, market, etc.
In the first year of its operation, the IFV issued four loans totaling $135,000 for the following innovations:
- Developing software that allows parents to easily set a variety of restrictions on the types of internet sites their children can access.
- Financing a start-up company to manufacture and market, on a commercial basis, energy-efficient bricks for construction.
- Introducing a new processing line for drying agricultural waste (almond shells as a byproduct) to serve as fuel for the almond drying process.
- Manufacturing egg and yogurt packaging from recycled paper.
Two of these companies are women-owned and two are start-ups. In addition to introducing these innovations to the market, IFV financing has resulted in the creation of 24 new jobs.
Crimson Development Foundation is a USAID legacy institution. With this partnership, USAID is further strengthening their position on the Macedonian financial market as a short-term financing institution, at the same time introducing a new financial service targeted to innovation. This financing vehicle and the Innovation Center, a spin-off of the USAID Macedonia Competitiveness Project, will contribute to the USAID strategic focus on fostering business innovation as a key driver of economic growth.
Last updated: February 26, 2013