BASQUE FONDO is a public investment instrument to facilitate the development and consolidation phases of new innovative Basque companies supported by the BICs.

The Fund is divided into two sections, so that it can respond to different needs of the projects in the various phases of their journey. Tranche I tries to facilitate financing in the delicate moments immediately after the decision to create the company, while Tranche II is a further step, and tries to favor, with greater demands but also with higher amounts, the financing conditions for companies with growth potential in later phases, once the most dangerous moments of the so-called “valley of death” have been left behind.

Eligibility conditions and action procedure

1)    BASQUE FONDO SECTION I ELIGIBILITY CONDITIONS:

• Have previously been beneficiaries of the Ekintzaile program, unless, for some exceptional reason, the Inter-Institutional Commission decides otherwise.
• SMEs with a maximum of 3 years old from its constitution.
• Industrial projects or services related to industry, with growth potential.
  Minimum share capital (paid up and through monetary contribution): € 25,000

Additionally, a higher paid-up capital is allowed and valued through a non-monetary or in-kind contribution. For the calculation of participation by the SGCRPV, the following will be taken into account:
– the monetary contribution to the capital stock,
– the contribution in kind to the capital stock, if applicable
– the share premium

• The contribution of the Fund, in a combination of equity participation and / or convertible loans, may be twice the contribution in equity capital of the promoters of the company, with a maximum of € 100,000.

2)    BASQUEFONDO SECTION II ELIGIBILITY CONDITIONS:

• Have previously been beneficiaries of the Ekintzaile program, unless, for some exceptional reason, the Inter-Institutional Commission decides otherwise.
  SMEs with a maximum of 5 years old from its constitution.
  Industrial projects or services related to industry, with growth potential, and with 2 categories:

High growth potential. Eligibility conditions:

• Minimum share capital: € 200,000
• Minimum turnover: € 400,000
• Creation of at least 10 jobs in 3 years
• The contribution of the Fund, in a combination of equity participation and / or convertible loans, may be of a maximum of € 400,000.

Growth potential. Eligibility conditions:

• Minimum share capital: € 100,000
• Minimum turnover: € 250,000
• Creation of at least 5 jobs in 3 years
• The contribution of the Fund, in a combination of equity participation and / or participating loans, may be of a maximum of € 250,000.

ACTION PROCEDURE:

• Pre-selection of potential beneficiary projects by the BICs.
  Communication to SPRI of the potential selected projects.
  Formal presentation of the projects, with information to SPRI and the corresponding Provincial Council.
• Analysis or pre-analysis where appropriate by Venture Capital.
• The projects that have passed the previous phase go to the Interinstitutional Commission of each territory, made up of SPRI and the corresponding Provincial Council. These Commissions will be constituted on an equal basis, with the Director of Entrepreneurship being the Chairman of each one, who will have a casting vote. A Venture Capital representative could attend as a guest.
• The Interinstitutional Commissions propose an amount of support for each project presented.
• The projects finally approved go to the formal Risk Capital commission, where the definitive amount of support will be established, its distribution between equity participation and participatory credit, where appropriate, and the mechanism for disposing of funds based on compliance with the consensual milestones.
• Venture Capital carries out all the necessary processes for taking part in the projects, being able to give representation on the Board to the agent of the system deemed appropriate.
• On a biannual or annual basis, the Provincial Councils and SPRI are informed of the evolution of the projects.
• In the event of non-compliance, and in relation to the participation in capital stock, no additional provisions may be made until the agreed milestones are met, or the express approval of the SGCRPV.
• In the event of default, and in relation to participating loans, there will be an increase of 5% over the original financial cost, until the agreed milestones are met.