Promálaga will create a joint venture fund for companies of at least one million euros

The Councilor for Innovation and New Technologies, Mario Cortés, and the spokesman for Citizens in the City of Malaga, Juan Cassá, presented on Thursday the CoInvierte Málaga program that has, among other objectives, the achievement of a development of the investment ecosystem in Malaga that helps attract the interest of specialized investors in companies with high growth potential. The co-investment will be carried out with investment partners that have been previously selected

CoInvierte is created under the umbrella of ‘open innovation’, a collaborative model of innovation. The main characteristic is that it is not only a program to inject capital, but also adds value to the concept of ‘know how’, a form of technology transfer and experience of potential investors.




Participative loans consist of a type of banking service in which the credit is agreed with a financial institution, where other companies will also participate. The minimum amount of the loan is 25,000 euros, and the maximum amount of 100,000 euros.

The same investor may co-invest in a maximum of four different projects per call, with a maximum investment amount of 200,000 euros in total.

Promálaga has set financial conditions that force private investors to invest in startups to contemplate a series of rules. First, for a minimum amount of 25,000 euros, the private co-investment must amount to that amount and be necessarily lent in cash and notarized.

In addition, non-monetary contributions may be accepted, with the approval of Promálaga, provided they add value to the business model. Its amount may reach a maximum of 50 percent of the contribution of the private partner for investments of more than 50,000 euros. In this way, a monetary investment of at least 25,000 euros is guaranteed.

This last contribution must also be notarized. Promálaga will make the disbursement of the loan once the co-investor has made the total disbursement of their investment.

As for the interest rates, the interest accruing on the loan will be made up of two tranches- pop over to this website Top Watches-brand. The first one will accrue and calculate the Euribor at one year plus 1.5 percentage points. The first period will comprise from the day of the loan formalization until December 31 of the same year. The remaining periods will have a duration of one calendar year.

In the second tranche, it will be accrued and calculated at an annual nominal rate calculated on the basis of the percentage that, in each year, represents the result of the entire year before taxes on the average equity, that is, the arithmetic average of the funds own at the beginning and at the end of the year. In the event that the average equity is negative, it will be considered equal to one euro. If the rate applicable to this second tranche is negative, it will be considered as zero.

With respect to the grace period, a principal amortization limit may be established with a maximum duration of 36 months, starting from the formalization of the loan in a public deed.

On the other hand, the amortization period of the loans granted will have a maximum duration of seven years, including the grace period.

The beneficiaries of the CoInvierte program will be innovative startups and/or technology-based for-profit and have a business plan for growth and consolidation. In addition, these companies must present a private investor accredited by Promálaga that will contribute, at least, the same amount that is requested as a loan.

Innovative or technology-based startups are considered to be those that meet at least one of the following requirements, such as carrying out innovative projects in terms of products, processes, marketing or organization; be able to demonstrate that in the future it will have the capacity to develop products and services that show improvements compared to other products in the same sector; operate in advanced emerging technological sectors in the strategic line of the city -‘Smart City ‘, digital content, technological tourism, internet, mobile and’ e-commerce’-; and they must have an activity based on the economic exploitation of patents, licensing contracts or technological knowledge through the development of new products that facilitate their introduction into the market.

The corporate purpose must contemplate the realization of any of the following activities: research, development or innovation; performance of concept tests; exploitation of invention patents and, in general, the transfer and exploitation of industrial and intellectual property rights; and the use and exploitation, industrial or commercial, of innovations, of scientific knowledge and of the results obtained and developed by said agents.

In order to benefit from the CoInvierte Málaga program, the ‘startups’ must prove their conditions of economic and financial viability and guarantee that they have the capacity to repay the loan granted under the conditions and deadlines set in the call. In addition, and to be able to justify the economic and financial viability, they will have to present, in a consensual manner with the co-investor, a business plan, canvas, and/or metrics that define the business model.

Finally, the company must certify that it has a registered office and tax office, a work center or research and development center in Malaga capital and be registered in the Treasury and Social Security at the time of the application date.

With this new program, Málaga seeks to become an ‘entrepreneur-friendly’ environment not only for ‘startups’, but also for investors and ‘business angels’. These agents play a decisive role in new companies since they help to help them economically while allowing agile investment models for new technological entrepreneurs.