Investors and projects can now benefit from an entirely local crowdfunding platform. On February 7 the Bulgarian Stock Exchange (BSE) announced the launch of SpaceCrowd, a platform designed to help startup companies raise up to 5 million euro within a 12-month period. The primary focus will be on financing between 200,000 levs (100,000 euro) and 1.5 million levs.
"In numerous meetings over the past few years with companies considering listing on the BEAM market [the BSE's small and medium enterprise segment], as well as within our BEAM Up Lab initiative, we found that many companies have great ideas and growth potential but have not yet reached the level of maturity required for listing on one of our organized markets," BSE CEO Manyu Moravenov said. "By creating this platform, we effectively cover the entire lifecycle of a growing company, providing opportunities and resources to raise capital at every stage of its development," he added.
The company behind the platform was established in November 2023 when the BSE (49% stake), the Central Depository (32%) and the ClearEX clearing house (19%) jointly founded Collective Financing with a capital of 150,000 levs. That same month, the Financial Supervision Commission granted the company a crowdfunding license.
Who can raise capital
All joint-stock companies are eligible to raise funds through the new platform. There are no restrictions on their development stage, as long as they provide an information document (similar to a prospectus), prepared with the help of an investment consultant.
Companies can create their profile directly on the platform but they will need a business valuation conducted by a licensed consultant. They will be required to specify a fundraising goal and a minimum threshold for successful operation. When setting up their profile, companies can also upload a pitch deck to present their business to potential investors.
"We rely on the consultant's judgment," said Manyu Moravenov. The information document must outline the company's future plans and how the raised capital will be used.
Fundraising rounds will last between four to six weeks. At least three companies have already expressed interest in using SpaceCrowd. Moravenov expects the first company to appear in the second quarter of 2025.
Investment for everyone
Any registered investor can invest through SpaceCrowd - either via an investment intermediary account or through a direct bank transfer. During registration investors must answer a few questions about their income and investment experience to determine whether they qualify as professional or retail investors. Investors can create a profile directly on the platform but they must have an investment intermediary account or establish one.
For now SpaceCrowd will not have a secondary market but in the future the platform plans to introduce a feature that connects buyers and sellers of shares. The goal is to provide an alternative to VC funding rounds and expand investment opportunities to a broader audience.
Each company will have a minimum investment requirement of around 1,000 levs, which will translate into a different number of shares based on the company's valuation. A fixed commission of 1.5% will be charged on the invested amount.
In addition to individual investors, legal entities and funds can also participate in investments via SpaceCrowd. "The platform is open to all potential investors, including venture capital representatives who can use it both for their own investments and to attract additional capital to their funding rounds," the BSE told the Capital Weekly.
One of the main differences between SpaceCrowd and other platforms is that it will focus on equity financing, whereas competitors primarily offer debt financing. However, Moravenov did not rule out the possibility of bond and loan options being introduced to SpaceCrowd in the future.
Investors and projects can now benefit from an entirely local crowdfunding platform. On February 7 the Bulgarian Stock Exchange (BSE) announced the launch of SpaceCrowd, a platform designed to help startup companies raise up to 5 million euro within a 12-month period. The primary focus will be on financing between 200,000 levs (100,000 euro) and 1.5 million levs.
"In numerous meetings over the past few years with companies considering listing on the BEAM market [the BSE's small and medium enterprise segment], as well as within our BEAM Up Lab initiative, we found that many companies have great ideas and growth potential but have not yet reached the level of maturity required for listing on one of our organized markets," BSE CEO Manyu Moravenov said. "By creating this platform, we effectively cover the entire lifecycle of a growing company, providing opportunities and resources to raise capital at every stage of its development," he added.
