The Vice-President of the Regional Government, Sérgio Ávila, presided over the opening session of a workshop on the use of risk capital and the presentation of the Investment Fund to Support Entrepreneurship in the Azores (FIAEA) that took place in Praia da Vitória today.
Speaking on the occasion, the government official stressed that, despite difficult period companies are facing, "the new Multiannual Financial Framework for the period 2014-2020 opens new perspectives to strengthen the development of our Region."
However, he reminded that the Government of the Azores "has implemented a wide range of measures that have fostered the creation of conditions to support companies overcoming difficulties."
This strategy comprises the Azorean Agenda for Employment Creation and Business Competitiveness "we have been implementing since the beginning of the year," the Strategic Plan for the Promotion of Entrepreneurship in the Azores, which will be force in the period 2013-2016, as well as other initiatives targeted at structural changes in the business sector, from the promotion of entrepreneurship to business creation programmes and services to support the monitoring and expansion of business projects.
In regard to the Venture Capital Fund FCR FIAEA - Investment Fund to Support Entrepreneurship in the Azores, Sérgio Ávila added that it has an initial allocation of one million Euros, of which nine-hundred thousand Euros were awarded by the Region in partnership with the venture capital society Portugal Capital Ventures, which holds 10% shares and is also the managing entity.
"The Fund asset is primarily targeted at the taking of stakes for a limited period of time in micro, small and medium companies developing projects or initiatives in strategic areas for the Azores,” explained the Vice-President.
These areas comprise tourism, health and wend well-being, marine sciences and aquaculture, agri-food technologies, environment, renewable energy, biotechnology, information and communication technologies and research.
The Vice-President of the Government made it clear that the fund "is not directed to mergers or financial restructuring operations, but to operations intended to boost the profitability of companies; however, these operations should be managed from a commercial perspective that focuses on the generation of added value, management support, definition of strategies as well as on the establishment of contacts and the promotion of internalisation."
FIAEA has defined as priority goal the taking of stakes in micro, small or medium companies headquartered in the Azores in projects that meet four goals.
Firstly, the investment projects supported by this measure should be developed by companies in the early stages of their life cycle, start-ups and spin-offs with potential for the creation of added value, either through the use of unique technology or the promotion of innovation."
Furthermore, projects must focus on innovation; they must be developed by companies that have been in operation for less than three years. This measure covers projects on the production of innovative tradable goods in the Region. All eligible projects should also promote the Region's export capacity or reduce imports in the Autonomous Region of Azores.
FIAEA's investment decisions are based on the Business Plans evaluated by the Fund's Investment Committee and, when applicable, on other analysis criteria set for each project. The decision-making process should be also supported from a perspective that takes into account the projects' profitability and feasibility. The maximum financial amount allocated under this initiative is set at 100 thousand Euros for each company every 12 months.