On March 24, 2021, CEE Legal Matters reported that Djingov, Gouginski, Kyutchukov & Velichkov had advised the founders of tech start-up MYX AD on EUR 350,000 invested into the company by a group led by New Vision 3 Fund KD. CEE In-House Matters spoke with Yordan Zarev, Partner at New Vision 3 Fund, to learn more about the matter.
CEEIHM: To start, please tell us a bit about the NV3 fund.
Yordan: This is our third generation fund, a EUR 25 million vehicle, investing in early-stage companies in fintech, AI, big data, cybersecurity, blockchain, digital identity, and urban mobility, among others. The fund invests tickets between EUR 100,000 and EUR 1 million in Bulgaria-based start-ups.
CEEIHM: You represented the lead investor in the EUR 350,000 investment round into the tech start-up MYX. What made the target particularly attractive to you?
Yordan: Currently there are over 65 million kilometers of roads, over 1.3 million kilometers of railroads, 4 million cell towers, and over 19 million square kilometers of protected land, with new infrastructures such as power lines, pipelines, bridges, and tunnels being built every day to accommodate the growing need for people to travel and connect with our increasingly global world. Companies need to take care of these assets regardless of the sheer complexity and size of the task; a step change is needed in how they maintain big and complex networks of assets.
MYX has a solution – digital twins of the world in one’s pocket. Incredibly accurate digital representations of the real world available on the smartphone to help make the best business decisions on the fly, and from any location. Empowered by MYX’s proprietary AI algorithms using Big Data, companies will be able to gain new insight into their own assets and get the big picture while not missing out on any of the important details.
CEEIHM: What are your plans for the start-up, now that the investment round is concluded?
Yordan: MYX will continue its cutting-edge product development and focus on market expansion in Bulgaria and beyond.
CEEIHM: How does this target align with the fund's overall medium and long-term strategy?
Yordan: We aim to invest in a portfolio of companies that complement each other and could easily create significant synergy by working together. MYX is such a company and their team seems to be quite eager to conquer this nascent market and become a global player. If all goes according to plan, MYX will position itself among the leading solution providers in this vast sector, thus offering a substantial return to our investors within the next 5 to 7 years.
CEEIHM: DGKV started off as the counsel for the founders and, post-commercial agreement, undertook the representation of all parties. What was it about the firm's work leading up to this point that made you turn to them?
Yordan: DGKV is a highly experienced player in VC deals. They devised an innovative investment instrument that will solve tons of red tape and other problems we have previously experienced when offering convertible instruments to investee companies. They have been hands-on and highly professional, from A to Z, and we plan to work with them going forward.