The Fund of Funds with First-Loss Tranche is a financing product implemented by the Entrepreneurship Development Organization (ODA), aimed at facilitating investments in growth-oriented enterprises and technology start-ups through investment partners selected via a public competitive process.
It operates through the use of a subordinated public contribution in the form of a first-loss tranche.
Reduces
Investment Risk
The first-loss tranche absorbs initial losses, providing protection to private investors.
Mobilizes Private and Institutional Capital
Public resources are used to attract additional private capital into the economy.
Supports Economic Growth
Investments are directed toward SMEs with growth potential and technology start-ups.
Target Beneficiaries
The Fund of Funds supports investments in businesses with genuine growth and innovation potential.
Growth-Oriented SMEs
Investments through growth capital instruments (equity, quasi-equity, and equivalent instruments).
Technology Start-ups and Innovative SMEs
Investments through venture capital instruments (venture capital and convertible instruments).
Investment Partners
Investments in beneficiaries are made through investment partners selected via a public competitive process. Partners are chosen based on clear eligibility criteria, experience, investment strategy, and operational capacity.
Who Can Be an Investment Partner?
An investment partner may be an investment fund (local, regional, or international), a joint-stock company engaged in investment activities, an investment management company, or an alternative collective investment undertaking that meets the Product’s eligibility criteria.
Local
Investment entities registered in the Republic of Moldova with relevant experience in investments, financial intermediation, or transaction advisory services.
Regional
Investment entities active in the region with at least 5 years of experience in managing investment funds and the ability to mobilize private and institutional capital.
International
Investment entities with at least 5 years of experience in managing investment funds, capable of attracting financial resources, expertise, and international best practices.
Product Objectives
Increase Access to Financing for SMEs and Start-ups
By diversifying long-term financing instruments, including growth capital for enterprises with growth potential and venture capital for technology start-ups and innovative enterprises.
Mobilize Private and Institutional Capital
Through the use of ODA’s public contribution in the form of a first-loss tranche to attract complementary private and institutional financial resources.
Reduce Investment Risk and Maximize Financial Leverage
By absorbing initial losses within predefined limits, increasing investment attractiveness and facilitating private capital mobilization.
Support Job Creation and Innovation
By fostering the development of innovative products and services and generating new jobs, particularly in technology and high value-added sectors.
Develop the Investment Ecosystem in the Republic of Moldova
By strengthening alternative financing mechanisms, attracting local, regional, and international funds and investment managers, and encouraging the local presence of investment teams.
Key Performance Indicators (KPIs)
Measurable Performance. Sustainable Impact.
Minimum 12
Growth-oriented SMEs financed.
Minimum 8
Technology start-ups financed.
Minimum IRR of 10%
Internal Rate of Return (IRR) of at least 10% at the portfolio level managed by each investment partner.
At Least 50%
Of each investment made in the form of equity capital.
At Least 20
New jobs created.
Financial Mechanism
2026-2027
(first-loss tranche):
(first-loss tranche):
Frequently Asked Questions
The Fund of Funds with First-Loss Tranche is a financing product implemented by ODA through selected investment partners to facilitate investments in growth-oriented enterprises and technology start-ups.