BULGARIA INVESTING IN THE FUTURE. ec.europa.eu/invest-eu | #investEU OPPORTUNITIES START HERE. #investEU EXPLORE THE To revive investments and growth, the European Union STORIES BEHIND supports people, ideas and visions across Europe EU INVESTMENT The European Union (EU) supported the initiative To revive investments and growth, the EU EU funding not only offers people financial of a Bulgarian couple who decided to engage in supports people, ideas and visions across Europe. support for their projects, but project rose oil production in the city of Panagyurishte. beneficiaries can also access hands-on The EU is all about opportunities that deliver Thanks to investment in the project, this coaching and expertise to ensure their projects real benefits and make a difference at a local high-value, traditional industry, which had provide real added value for the people and level. The promotion of growth, employment MODERNIZED WASTE MANAGEMENT disappeared in the region one hundred years ago, communities around them. Results are visible and well-being across Europe is one of its is now back. Already 60 families, including Roma, thanks to knowledge-sharing and research ERASMUS+ main priorities. By investing in people’s ideas HUVEPHARMA have started to grow their own rose gardens. facilities, energy efficient buildings or smart and visions, the EU is removing obstacles mobility solutions, which, in turn, lead to a more and creating favourable conditions for sustainable future for Europe’s cities and regions. development and modernisation across the continent. In support of the pioneering and Whether it’s helping local authorities to build entrepreneurial spirit of Europeans, the EU a modern landfill site, renovating a city’s sewage opens doors and empowers people to pursue system, or building a state-of-the-art skate park their own innovative projects. that is attracting young people from the local PLAYGROUND community and is gaining a reputation as ENERGY Europeans have already come up with original a centre for international competitions, MODERN INTEGRATED SKATE PARK “IZGREV” ‘INA’ ROSE OIL WATER INFRASTRUCTURE ideas for better education, modernised EU funding gives a boost to projects that make SOFIA METRO DISTILLERY healthcare and greener transport infrastructure, a difference at the local level. RISK CAPITAL to cite but a few examples, and the EU has INVESTMENT FUNDS Only some of these stories feature in this provided the means to get tailored projects off EVALA brochure. But look around in your community the ground. Where valuable projects struggle and you will see that behind European to win investment due to the reluctance of HUVEPHARMA investments there is a wealth of people’s investors to take risks, the EU steps in by stories to discover. backing loans or providing funding for projects that have the potential to succeed. 2 ec.europa.eu/invest-eu | #investEU OPPORTUNITIES START HERE. #investEU ‘INA’ ROSE OIL DISTILLERY PANAGYURISHTE oil distillery, founding their essential oil says Nikolay, adding that, on the international Rose-growing company Ina Ltd. It turned out that roses from market, Bulgarian rose oil is seen as the perfect Panagyurishte were in no way inferior to those product. Prices fluctuate between €7000 to tradition revived from Kazanlak, and with their distinctive hint of €11 000 a kilogram every year. honey, they have one of the best aromas of any in Panagyurishte Bulgarian rose. As the couple’s rose production Ina Ltd’s products are increasingly highly grew, the distillery was unable to keep pace. regarded across Europe and the company’s With help from European Union (EU) funds, Today, they have around 8 hectares of roses clients include cosmetics manufacturers in an enterprising family in the Bulgarian town of but continue to expand their gardens and help France, Germany and Switzerland. Consumers Panagyurishte has revived rose cultivation, some 60 other families to grow the flowers. appreciate the fact that the products bring environmental and social benefits. “It is nice a practice that had completely disappeared in The family also focuses on organic production. to work in harmony with public expectations, the area after the First World War. Following their With funding from the EU’s European Network rather than to simply make money,” concludes example, many other local families have started for Rural Development, they set up another Veselina. to grow their own roses. distillery to produce organic rose oil, which is around 20 % more expensive than its non- Kazanlak is the Bulgarian region most famous organic equivalent. for its roses. However it is 100 kilometres further east, in Panagyurishte, that cultivation Thanks to its growth, Ina Ltd employs an of the oil-rich flowers is being revived by a increasing number of seasonal workers, with family of entrepreneurs. 30-40 people hired for 9-month stints. It takes 3 000-3 500 kilograms of rose petals to make In 2002, Veselina Ralcheva and her husband a kilogram of rose oil. “It is still worth it. This Nikolay were wondering what to do with the is the perfect family business,” says Veselina land they had been given back after the fall convincingly. The rose petals are bought for of the communist regime in Bulgaria that had €1.50-€1.80 (3-3.50 Lev) a kilogramme, 50 cents confiscated their ancestors’ property back in 1945. (1 Lev) of which goes to the pickers. The couple Neither of them knew anything about agriculture, claim that the last harvest was so good that but they decided to start growing roses. they collected 400 kilogrammes of petals from 1 000 m2 of land. Veselina and Nikolay initially planted Damask and a few Alba rose bushes. They also bought Referred to in Bulgaria as ‘liquid gold’, rose oil 5 second-hand equipment to create a rose “does not need to be advertised anywhere,” PLAYGROUND ENERGY SOFIA Captivated by computer games, they spend Actually, funding is the wrong word. We are Bulgarian much less time being physically active and talking about an investment.” He goes on to say playing outside,” says Hristo. that when Eleven saw the company’s potential, it venture capital provided €220 000 in return for a 32-33 % stake. Inspired by the rocking chair idea, Hristo and funds support Ilian created Playground Energy, Hristo’s sixth “Thanks to this investment and finance from company. One of its most famous products is a smaller investor, if everything continues to good ideas an illuminated spring rider and its equipment run smoothly, we will break even, making us is currently sold across five continents: Asia, financially stable,” Hristo notes. He believes Playground Energy is a Bulgarian company Australia, Europe, North America and South Bulgaria is a perfect place for innovation and with the aim and prospects of becoming America. business because it would not be possible to achieve as much with the same amount of a global leader in the design and development of As Hristo explains, “We make playground start-up capital in Western Europe or the USA. interactive playgrounds. Founder Hristo Aleksiev products and other park equipment, such as explains that the good ideas behind the company outdoor exercise devices. What they all have Asked how he sees his relationship with Eleven, would not have stood a chance without in common is that they produce energy from Hristo replies “Extremely positively. I am not the involvement of an EU-backed risk capital fund. Hristo Aleksiev, who calls himself a serial people’s movements, which is used to generate saying this to curry favour with them. They entrepreneur, is one of the founders of light and sound. With our mobile applications, have helped us not just with money but also Walltopia, a world leader in climbing wall the equipment can measure how much with contacts, ideas and advice. They are a loyal design and construction which has received energy was used or create a game element partner.” European Union (EU) funding. But in 2012, and a virtual reality from what is otherwise a Hristo had another interesting idea. His business monotonous physical activity.” Eleven is just one EU-backed Bulgarian venture partner, industrial designer Ilian Milinov needed capital fund which invests in local start-ups. to charge his mobile phone while sitting on With regard to how he obtained funding, NEVEQ, LaunchHub Ventures, Black Peak Capital a rocking chair in a café. “If only it were possible Hristo says, “We did not apply directly to the and Empower Capital also promote innovation to use the energy generated by the rocking EU. Instead, we reached out to a Bulgarian risk and stimulate the economy with support from chair,” said Ilian, to which Hristo replied, capital fund – Eleven – which has EU funds at its EU funds. disposal. I think we are talking about “You might be onto something there.” €12 million (31 million lev), which the fund uses “That was the eureka moment. But one of the to finance start-ups. And we are one of those main reasons was the increasingly sedentary companies. We were, in fact, in the first group 7 lifestyles of European and American children. of 11 companies to receive funding. RISK CAPITAL INVESTMENT FUNDS, NATION WIDE PESHTERA, RAZGRAD SUPPORTED BY THE EU HUVEPHARMA Venture capital funds support bold ideas Bulgaria’s Huvepharma to become global and stimulate economic growth in Bulgaria pharmaceutical leader thanks to EU support EU-backed venture capital funds have helped Investment from another of the venture capital Bulgarian pharmaceutical company Huvepharma Investment in the business unit at Biovet, a many promising Bulgarian start-ups to grow. funds, Eleven, has helped develop the start-up has received a €100 million loan under the subsidiary of Huvepharma, will enable the This has created an attractive environment Playground Energy, a company which creates Investment Plan for Europe.