Flashpoint launches Venture Debt, a EUR 50 million fund dedicated to startups in CEE

Aurel Dragan 22/04/2019 | 16:31

Buran Venture Capital, the financial group offering equity and debt financing solution for software companies, rebranded itself in Flashpoint. After rebranding, the company also announced the launch of a new product, a Venture Debt fund dedicated to tech startups in Central and Eastern Europe and Israel, with a target value of EUR 50 million. Venture Debt is a loan designed to help startups finance their operations and access expertise without diluting existing shareholders’ equity.

“Our business has expanded significantly over the past few years and we have realized that our vision is to develop a top multi-asset investment and asset management business dedicated to Central and Eastern Europe and Israel and not just a fund venture capital,” said Alexander Konoplyasty, managing partner Flashpoint.

“We have searched for a new name that reflects our vision of development and at the same time resonate with our company DNA and our core values ​​that we promote. The flash point is the lowest temperature at which a material’s vapor ignites. We believe that we also create a flashpoint by providing capital and expertise to the startups where we invest,” added Michael Szalontay, managing partner Flashpoint.

The launch of Venture Debt is part of Flashpoint’s strategy of building a multi-product investment platform that invests in software startups in Central and Eastern Europe and Israel.

Michal Jozwiak, senior Senior Vice President for private debt, mezzanine and private equity in the Central and Eastern Europe team of Darby Private Equity (Franklin Templeton Investments), will be managing partner of Flashpoint Venture Debt.

“We are pleased to be the first to launch a CEE venture debt fund with a target value of EUR 50 million, giving technology companies an alternative option to finance their growth,” said Jozwiak.

Eventually, Flashpoint announced that Edward Nicholson will join the group as General Partner and Chairman of the Flashpoint Advisory Board. Edward was the executive director and chairman of Brunswick Investment Bank, acquired by UBS, having a decisive involvement in the development of the company and helping it become one of the top finance businesses in Eastern Europe.

“I am very pleased to join this talented team that has actively offered early stage funding and expertise to a market that has been scarcely addressed, but with many technology entrepreneurs developing international software companies,” said Nicholson.

With the announcement of its new brand, the strategic move to expand its offer beyond equity financing and the strengthening of its executive team, Flashpoint strengthens its position as the top financial group in the technology sector in Central and Eastern Europe and Israel.

In June, the Flashpoint Fund will be present at Techsylvania, the technology event to be held in Cluj-Napoca between 8 and 11 June 2019, also participating in the training program for the selected teams for the Startup Avalanche competition, which offers an investment EUR 100,000 to the most promising startup early stage.

Founded in 2012, Flashpoint is an international financial group that manages equity and debt funds, investing in software companies based in Central and Eastern Europe, Israel, Finland, the Baltic, Armenia, Belarus, Russia and Ukraine. Flashpoint has a team of 16 professionals, based in Israel, Hungary, Poland, Latvia and Russia. The group has already invested in Europe, Israel and Russia, including Shazam (purchased by Apple), Chess.com, Israel Guest, Growbots and Estimote in the Polo, BonusWay in Finland and many others.

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