Investment approach - ERP-EIF Dachfonds

Investment criteria

• Independent teams with complementary VC;
• Technology and industry experience;
• Coherent fund strategy taking into account the know-how of the team as well as fund size and the geographic, industrial and technological focus of the fund;
• Commercially viable fund sizes for team stability and the fund's shooting power concerning investments and follow-on financing needs;
• Appropriate incentive for the whole team;
• Pari-passu treatment of all investors;
• Fund should follow commercial investment approach;
• Clear legal and tax structure for the fund incl. market standard terms and conditions;
• EIF may not participate in funds where public funding (incl. EIF) is expected to exceed 50% of the fund's funding, after its target fundraising level is achieved;
• The funds in which EIF invests under the ERP-EIF Dachfonds must invest exclusively in SMEs according to the EU definition, which signifies: Not more than 250 employees; Turnover not exceeding EUR 50m or net assets not more than EUR 27m; Independence (not more than a quarter of the fund's capital held by non-SMEs).

• 1.   First contact (telephone, e-mail, meeting etc.);
• 2.   First screening of documents provided (preferably draft PPM);
• 3.   Meeting with the core management, discussion of the fund project (fund size, strategy, management, etc.);
• 4.   In-depth Due Diligence (meeting with all team members, investees, referencing, etc);
• 5.   Contract negotiations and legal Due Diligence;
• 6.   Investment decision by EIF Board;
• 7.   Signature of the fund;
• 8.   Management of the investment.