The Fund of Funds with a First-Loss Tranche is an ODA financing product that facilitates investments
in growth-potential enterprises and technology start-ups, through professional investment partners
selected through a public competitive process.
The Fund operates on the basis of a subordinated public contribution in the form of a first-loss tranche.
Reduces
Investment Risk
The first-loss tranche absorbs initial losses, reducing risk for private investors.
Mobilizes Private and Institutional Capital
Public resources help mobilise additional private capital for 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 high growth and innovation potential.
Growth-Potential 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 are made through professional investment partners selected through 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 operating in the region with at least 5 years of experience in fund management and a demonstrated ability to mobilize private and institutional capital.
International
Investment entities with at least 5 years of experience in fund management, capable of attracting capital, 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 growth-potential businesses and venture capital for technology start-ups and innovative enterprises.
Mobilize Private and Institutional Capital
Through ODA’s public contribution in the form of a first-loss tranche, mobilizing additional private and institutional capital.
Reduce Investment Risk and Maximize Financial Leverage
By absorbing initial losses within predefined limits, enhancing the attractiveness of investments and mobilizing private capital.
Support Job Creation and Innovation
By supporting the development of innovative products and services and creating new jobs, particularly in technology and high-value-added sectors.
Develop the Investment Ecosystem in the Republic of Moldova
By strengthening the market infrastructure for alternative financing, attracting local, regional, and international investment funds and managers, and encouraging investment teams to establish a local presence.
Key Performance Indicators (KPIs)
Measurable Performance. Sustainable Impact.
Minimum 12
Growth-oriented SMEs financed.
Minimum 8
Technology start-ups financed.
Minimum IRR of 10%
Portfolio-level Internal Rate of Return (IRR) of at least 10%, achieved by each investment partner.
At Least 50%
Of each investment must be made in the form of equity.
At Least 20
New jobs created.
Financial Mechanism
2026-2027
(first-loss tranche):
(first-loss tranche):
Frequently Asked Questions
The Fund of Funds with a First-Loss Tranche is an ODA financing instrument designed to increase investment in growth-potential enterprises and technology start-ups through, selected investment partners.