European Investment Fund Provides Over $1 Billion to Startups in 2015
Since the start of 2015, the European Investment Fund (EIF) and equity funds across Europe have signed investment agreements worth over $1 billion to provide equity financing for businesses. These 28 transactions benefit from the support of the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe.
The new agreements enable fund managers to invest in promising startups, small and medium-sized enterprises (SMEs), and midcaps, benefitting from early-stage to growth capital investments. By mobilizing other investors, this is expected to result in overall investments of more than $12 billion across the European Union.
Companies where these funds have invested so far include a leading player in the Italian ophthalmic industry, a Berlin startup offering on-demand home services, and a startup with offices in London and Athens providing a software, primarily for SMEs, that facilitates the recruiting process for employers.
More are expected to receive similar financing support under EFSI in the coming months.
“The investment plan for Europe aims at providing the financial instruments that the market is not providing today so that Europe can invest in its future,” said European Commission Vice President Jyrki Katainen. “This is particularly true for SMEs that are lacking equity financing in Europe.”
“Too many start-ups leave our continent because they can’t raise the finance to commercialize innovative ideas,” said European Commissioner Carlos Moedas, responsible for Research, Science and Innovation. “That is why it is so encouraging to see the European Fund for Strategic Investments off to such a good start, investing in promising innovative projects and SMEs from biotech to renewable energy.”
“The additional investment signed under EFSI gives leading venture capital and mid-market funds an opportunity to target more companies in the coming months, helping to meet demands for their current deal flow and boosting the growth economy,” said EIF Chief Executive, Pier Luigi Gilibert. “Many of these funds have already started investing in companies, including startups, in France, Germany, Italy, the UK and Sweden and we expect to see more investments in other countries soon.”