EIB Group resources
For its venture capital activity, the EIF manages both its own resources as well as resources from the European Investment Bank. Together, these are referred to as EIB Group resources. EIB Group resources for venture capital are allocated under different investment mandates.
EIB Group (EIB and EIF) resources for venture capital are managed by the EIF as part of the Amsterdam Special Action Programme and the Innovation 2000 Initiative.
The EIF aims to invest in:
- Independent management teams that raise funds from a wide range of investors in order to provide risk capital to growing Small and Medium-sized Enterprises.
- Funds targeting early stage companies that are developing or using advanced technologies in industry or services.
Investment Target
We seek a minority position of between 10 and 35% of the total capital committed in a fund. The exact size of the EIF's investment varies according to the size and characteristics of each fund.
Eligibility Criteria
The EIF requires that its portfolio funds:
- Raise at least EUR 15 million.
- Focus principally their investments in the EU and the Acceding/Accession Countries.
- Focus primarily their investments on early-stage, development or expansion capital, preferably in technology-oriented SMEs.
- Target mainly SMEs, defined as businesses with less than 250 employees, with total turnover not exceeding EUR 50 million or a balance sheet total not exceeding EUR 43 million, and that are independent (i.e. not owned by more than a third of their capital by non-SMEs) at the time of the fund’s first investment. In exceptional cases, a target of enterprises with more than 250 employees can be considered.
- Be mainly independently and professionally managed, i.e.:
Selection/monitoring by a dedicated management team of professionals with appropriate experience and skills;
Investment/divestment decisions taken either by the management team and/or by an independent board whose members are independent from the investors. - Provide a risk-adjusted return in line with that of the private equity market.
- Be mainly funded by Private sector investors, with the Public sector investors (including the EIF) not exceeding 50% to total committed capital.
Further Information
If you wish to make a venture capital proposal to us, we would normally expect to receive an information memorandum setting out the details (information memorandums are reviewed on an on-going basis).
It is not necessary to indicate on the information memorandum whether the proposal is intended for an EIB Group or an EC funded programme. Our venture capital team will allocate the source of funding at a later stage in the assessment procedure.
Please note that there is no formal application procedure for the Seed Capital Action programme.
We expect information memorandums to address at least the following matters:
- management team
- target market
- deal flow
- investment strategy
- fund size
- legal structure
- proposed terms
- expected returns
- other investors
- timing of fund raising