Basque Fondo (Tranche I)

1) BASQUE FUND TRANCHE I ELIGIBILITY CONDITIONS:

Have previously been beneficiaries of the Ekintzaile program, unless, for some exceptional reason, the Interinstitutional Committee decides otherwise.
SMEs with a maximum of 3 years since their incorporation.
Industrial or service projects related to the industry, with growth potential.
Minimum capital stock (paid in and through cash contribution): €25,000

In addition, a higher paid-up capital by means of non-monetary contribution or contribution in kind is permitted and valued. For the calculation of the SGCRPV’s shareholding, the following will be taken into account:
– the cash contribution to the share capital,
– the contribution in kind to the share capital, if applicable
– the share premium.

The Fund’s contribution, in a combination of equity participation and/or convertible loans, may be double the cash equity contribution (capital plus share premium) of the company’s promoters, with a maximum of €100,000.
In the event that the company uses patents for its activity, the ownership of such patents must be owned by the company. Therefore, companies that have the assignment of use or exploitation rights of patents are not admissible, except in those cases of projects derived from patents owned by the CCTT or the University, in which the best way to proceed must be expressly analyzed.

2) BASQUEFONDO TRANCHE II ELIGIBILITY CONDITIONS:

Have previously been beneficiaries of the Ekintzaile program, unless, for some exceptional reason, the Interinstitutional Committee decides otherwise.
SMEs with a maximum of 5 years since their incorporation.
Industrial or service projects 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 Fund’s contribution, in a combination of equity participation and/or convertible loans, may be up to 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 Fund’s contribution, in a combination of equity participation and/or participating loans, may be up to a maximum of €250,000.

Pre-selection of potential beneficiary projects by the BICs.
Communication to SPRI of the potential projects selected.
Formal presentation of the projects, with information to SPRI and the corresponding Provincial Council.
Analysis or pre-analysis by Venture Capital.
The projects that have passed the previous phase go to the Inter-Institutional Commission of each territory, composed of SPRI and the corresponding Provincial Council. These Commissions will be constituted on an equal footing, with the Chairman of each one being the Director of Entrepreneurship, who will have the casting vote. A representative of Venture Capital may attend as a guest.
The Interinstitutional Committees propose an amount of support for each project submitted.
The projects finally approved will be submitted to the formal Venture Capital Committee, where the final amount of support will be established, its distribution between equity participation and participative credit, if applicable, and the mechanism for the disposal of funds based on the fulfillment of the agreed milestones.
Venture Capital carries out all the necessary processes for the acquisition of participation in the projects, being able to give representation on the Board to the agent of the system that is considered appropriate.
On a semi-annual or annual basis, the Provincial Councils and SPRI are informed of the evolution of the projects.
In the event of non-compliance, and with respect to equity participation, no additional provisions may be made until the agreed milestones have been met, or express approval by the SGCRPV.
In the event of default, and in the case of participating loans, there will be an increase of 5% over the original financial cost, until the agreed milestones have been met.