Start date: January 1, 2012          End date:   December 31, 2015 
Project budget:  $300,000
Implementer:  Crimson Development Foundation  (CDF)

Objectives

Establish and manage a specialized fund to support innovation and business start-ups, addressing the access to finance constraint faced by innovation-focused entrepreneurs.  

Components

• Development of specialized financial products to support business innovation in Macedonia including purchase order financing, term loans; revolving lines of credit; and convertible debt.
• Client/investment screening, analysis and selection. 
• Fund monitoring and administration.  

To address the unique needs of innovators and start-ups, CDF has allowed for flexibility and creativity in the financing structures. For example, a combination of financing products might be utilized, or the loan terms and conditions may be tailored to fit the opportunity, sector, market, etc.

Achievements/Impact

In the first year of its operation, the IFV issued four loans totaling $135,000 for the following innovations:

• Developing software that allows parents to easily set a variety of restrictions on the types of internet sites their children can access.
• Financing a start-up company to manufacture and market, on a commercial basis, energy-efficient bricks for construction.
• Introducing a new processing line for drying agricultural waste (almond shells as a byproduct) to serve as fuel for the almond drying process.
• Manufacturing egg and yogurt packaging from recycled paper.

Two of these companies are women-owned and two are start-ups. In addition to introducing these innovations to the market, IFV financing has resulted in the creation of 24 new jobs.

Sustainability/Legacy

Crimson Development Foundation is a USAID legacy institution. With this partnership, USAID is further strengthening their position on the Macedonian financial market as a short-term financing institution, at the same time introducing a new financial service targeted to innovation. This financing vehicle and the Innovation Center, a spin-off of the USAID Macedonia Competitiveness Project, will contribute to the USAID strategic focus on fostering business innovation as a key driver of economic growth.

Contact Information

Contact at USAID: Margareta Lipkovska Atanasov, AOR, mlipkovska@usaid.gov 
Designated contact person: Lovre Ristevski,
lovre.ristevski@crimsoncapital.org.