Equity mechanism for start-up financing

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Module title Equity mechanism for start-up financing Sector Sustainable economic development and employment promotion Program Employment promotion through private sector and financial sector development Program objective A competitive and sustainable private sector, a deepened Tunisian financial sector and adequate state and private support structures contribute to improving the employment situation of the Tunisian population. Core problem Young companies (especially innovative start-ups) have no access to financing from commercial banks due to their risk profile and regulatory and administrative barriers (financing gap). This hinders the growth and innovation potential of the Tunisian economy and makes positive employment effects more difficult. Module objective Access to finance for innovative and growth-oriented start-ups in Tunisia is improved and jobs are created in the long term. Contribution to the national implementation of Agenda 2030 SDG 8 Human dignity, work and economic growth; SDG 9 Industry, innovation and infrastructure SDG 17 Partnership to achieve the goals Target group The target group of the project are innovative growth-oriented start-ups in various phases and their employees. The target group is reached through investments in venture capital (VC) funds with a corresponding anchoring in Tunisia that invest in startups. Recipient/project sponsor Umbrella fund Fonds de Fonds ANAVA (recipient) Fund management company Smart Capital S.A. (project sponsor) Key outputs Output A ANAVA provides equity capital for startups via VC funds, Output B Startups are positioned for strategic and sustainable growth KfW investment EUR 20 million (BMZ-THB) Other investors Caisse de Dépôt et Consignations (CDC, refinanced by World Bank credit line) in the amount of around EUR 40 million,