Launched officially a month ago, the VC fund BrightCap Ventures announced its first investment – a €2.65 M convertible debt financing for Software Group BG, a Bulgaria-based technology company targeting microfinancing institutions. Although transaction details were not announced, sources suggest Software Group’s valuation is in the €55-€75 M range, while the interest rate on a previous Software Group deal was about 12%.
According to Elina Halacheva, BrightCap’s Managing Director, the funds will be used for switching from a licensing business model to a subscription-based one. Putting the numerous advantages of Software-as-a-Service monetization aside, the main drawback is the delayed revenue recognition, resulting in a growing need for working capital.
In addition to the financial commitment, BrightCap’s Managing Partner Daniel Lorer spoke for a potential strategic support as well:
Microfinancing is extremely popular in Africa, Asia and Latin America; however, Software Group has ambitious plans and is looking one step ahead. They want to be present in the developed world, where we, as an investor, can add value through our connections in Switzerland, Israel, the USA and other countries. Software Group’s growth plans also include expanding into new verticals such as banking, telecoms and fintech companies.
BrightCap’s executive team has substantial experience in research and development within prominent international tech companies. Given the perspectives for broadening Software Group’s product range, the investor’s expertise could be extremely helpful.
