Morningside Hill Capital Management

Overview

Morningside Hill Capital Management is a privately owned investment firm based in Sofia, Bulgaria, specializing in venture capital, private equity, hedge funds, and mutual funds. The firm employs a value investing approach, aiming to generate long-term investor value through rigorous fundamental research and a focus on measurable investment factors. Their disciplined institutional approach and best practices implementation drive their investment edge, enhanced by insights from an extensive network of professionals, including management teams, industry specialists, and fellow investors. A culture of learning, efficiency, and constant improvement permeates the firm. In November 2019, Morningside Hill launched its latest venture capital fund, focusing on providing growth capital to Bulgarian startup companies. The fund has EUR 38.5 million under management, investing in equity (or equivalent) minority positions in 25 to 30 companies. The VC fund comprises public funds of EUR 33.3 million provided by the Fund Manager of Financial Instruments in Bulgaria EAD under the operational programme “Innovation and Competitiveness” co-financed by the European Structural and Investment Funds for the 2014-2020 programming period. The typical investment holding period is 5-10 years, with exit opportunities evaluated ad hoc. The firm's investment criteria are sector agnostic, focusing on companies that satisfy at least one of the following conditions: generating at least 50% of revenue in Bulgaria, having at least 50% of staff based in Bulgaria, or holding at least 50% of assets in a Bulgarian subsidiary. Morningside Hill seeks to invest in startups that are in an early stage of development (post-seed), have a viable product or service with market validation, have generated initial revenues or are on the verge of doing so, possess an exceptional management team addressing specific market needs, and have a significant total addressable market. The firm also looks for internationally competitive products or services, realistic growth potential, a measurable competitive advantage, solid cost control, an innovative or industry-disruptive approach, transparency in operations, and a viable exit strategy. Morningside Hill's portfolio includes investments in companies such as Nasekomo, Gastronom.bg, Bizportal, ZenART, and Vital Concept. The firm has a history of backing Bulgarian companies with significant investments, including a €1 million investment in ZenART and a €500,000 investment in Vital Concept. The firm's commitment to supporting local startups is further demonstrated by its involvement in the Fund Manager of Financial Instruments in Bulgaria's operational programme “Innovation and Competitiveness,” co-financed by the European Structural and Investment Funds for the 2014-2020 programming period. This collaboration highlights Morningside Hill's dedication to fostering innovation and competitiveness within Bulgaria's startup ecosystem. Morningside Hill Capital Management continues to play a pivotal role in Bulgaria's venture capital landscape, providing essential growth capital and strategic support to emerging companies, thereby contributing to the development and success of the country's entrepreneurial ventures.