There were companies in the spring of 2020 that literally exploded due to the massive demand for Covid protection. Konstantin Angelov’s company Noesis is one of them. He founded the cosmetics company at the beginning of the pandemic year 2020 with BGN 20,000 personal capital, using family equipment. And due to the huge demand for hand sanitizers, it managed to realize a turnover of almost BGN 2 million within just 6 months.
At the Noesis base in Plovdiv, cosmetics are produced for private lines of companies, including Lidl, Kaufland, Metro, DM and start-ups in Europe. And with the external investment in the amount of EUR 285 000, says Angelov, the company will develop products for as many as three own cosmetic brands, one of which will target the pet cosmetics market.
Loan for flexibility
The leading investor in the deal, in which everyone infuses funds through a convertible loan into the Noesis sole proprietorship, is the Impetus fund, which invested 100,000 euros. Vitosha Venture Partners and New Vision 3 participate with 50 000 euros each. The remaining 85 000 came from angel investors.
“A convertible loan gives a lot of flexibility – the investment is disbursed faster, allows for equally quick subsequent investments and makes possible additional parameters of the deal that depend on future events. Above all, the convertible loan is designed to be converted at a subsequent round or liquidity event. Its term is 24 months,” the Impetus fund says.
Money for R&D
Until the closing of the round, Noesis mainly fulfills orders for the production of cosmetic products for private brands, but Angelov’s goal is for the company to develop “own brands with high added value”. With the financial support, the company will concentrate on the development of three new brands.
“The technologies we are working on are related to the development of innovative water-free formulations or those with minimal water content, packaging made of biodegradable materials and luxury bottles for multiple use,” says Angelov.
“According to our investment agreement, in the next 6 months we will concentrate on R&D activities with the aim of creating products, finalizing an online store and realizing a token turnover to validate the business,” he explains. In the period after that, “Noesis” will expand production until it reaches the already set goals for revenues and quantities sold, concludes Angelov.