USAID Launches $300,000 Grant Fund to Boost Diaspora Business Angel Investment in Bosnia and Herzegovina

Sarajevo, Bosnia and Herzegovina - The U.S. government announced a new $300,000 grant fund to incentivize business angel investments from the Bosnia and Herzegovina (BiH) diaspora yesterday at the Business Angel Summit in Sarajevo. This fund from the U.S. Agency for International Development (USAID) will provide BiH start-ups with crucial early-stage capital by connecting them with diaspora investors and matching their investments.

“Start-ups in BiH face numerous barriers accessing financing needed to grow and sustain their businesses - including a lack of formal institutions that provide equity or risk finance, minimum business age restrictions, and virtually non-existent venture capital or other innovative financial instruments,” U.S. Embassy Deputy Chief of Mission Daniel Koski said during the Summit. “I urge all of you here today to explore this new facility as a potential stepping stone on your journey toward growth and sustainability.” 

This new grant fund is part of a partnership between the USAID Diaspora Invest project and Fondacija 787 - a non-governmental organization that supports women and young people from Bosnia and Herzegovina to start and grow their businesses – to drive entrepreneurship and economic growth in BiH. Together, USAID and Fondacija 787 also created a Business Angel Roadmap that outlines actions and reforms needed to stimulate angel investment; prepared Guidelines for Business Angel Investing to help investors navigate the institutional and legislative environment in BiH; and continue organizing investor meet-ups and events to support and expand the BiH Business Angel Network.

For the past 25 years, the U.S. government has supported the evolution of a modern and resilient financial and private sector in BiH. USAID’s Diaspora Invest Project, a five-year, $15.7 million initiative aimed at driving diaspora engagement, investment, and knowledge transfer to strengthen local economies in BiH, is a continuation of these efforts. Since 2017, USAID has leveraged more than $82 million in investments in diaspora-led companies in BiH, emphasizing the important role the diaspora community can play in advancing innovation, entrepreneurship and sustainable economic development. The U.S. government remains committed to fostering sustainable economic growth and financial inclusion in BiH.