NBLO advises Connect44 on becoming the largest investor in local digital twins business MYX

18 July 2022

Connect44 AG, an Anglo-Swiss telecom services leader based in Lucerne with a workforce of 1,000 globally, has closed on its c. €3M investment in the Bulgarian startup MYX AD. As part of the transaction, Connect44 will acquire a significant minority share and it has already become the main external investor in the business. The post-money valuation of MYX in the transaction is €13.5M, impressive given the youth of the less than 2-year old business.

MYX creates sophisticated digital twins to real-life assets and an environment in which they can be manipulated with facility, with a special focus on serving telecom operators. It has grown exceptionally strongly over its brief history. Connect44 hopes to continue to assist the startup with their international expansion strategy and had already been partnering with the company.

The round also included the local fund NV3 (a pioneer in Bulgarian VC) and was favourably covered in the local business press.

NBLO’s team acted for the Swiss investor, Connect44, and assisted with advice on both Bulgarian aspects to the transaction; post-transaction structuring and also on English law governed transactional documentation. Anglo-American systems such as English and several US state laws are commonly chosen by international investors to govern documents such as Term Sheets, Investment and Shareholders’ Agreements, and others and are increasingly frequent with sophisticated Bulgarian investments. 

NBLO’s team included Partner Kamen Shoylev dual qualified in Bulgaria and England, who led on the English aspects, deal structure and IP advice (the transaction raised interesting questions regarding rights to constantly evolving software; databases and AI-created or assisted output); Partners Nevena Bekyarova and Svetoslav Ivanov; Senior Associate Petro Tyufekchiev and Associates Yavor Markov and Sylvia Vitlarova

NBLO regularly assists investors in the tech and start-up scene in Bulgaria. NBLO also helps standard creation (see here) including at the Bulgarian Venture Capital Association (of which it is a very active member) supporting both inbound investors and internationally expanding local founders. 

 

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