LfA-EIF Facility

The LfA Förderbank Bayern and EIF joined forces to establish the LfA-EIF Facility, a EUR 50m fund of funds (Dachfonds) for investments in venture capital funds to support technology-oriented early and expansion stage companies in the region of Bavaria, Germany. Funds are not restricted to invest solely in Bavarian companies, but one focus of the investment activity should be on investments in this region. EIF manages the facility on behalf of the LfA Förderbank Bayern. The LfA-EIF Facility invests in specialized venture capital funds that focus on investments in early and development stage technology companies and have its seat or an office in Bavaria to support the development of the Bavarian venture capital sector.

The LfA-EIF Facility:

• acts as a commercial investor, seeking an appropriate return on its investments
• is a long-term and pro-active investor and gives support in structuring and improving the business proposition of Venture Capital teams
• is a pari passu cornerstone investor for commercially viable teams
• promotes best industry practice (fund structures, governance)
• provides a catalytic role through high quality due diligence process
• is a network gate for Venture Capitals through EIF's large portfolio
• is a reliable and active investor adding value throughout the investment process
• may invest alongside ERP-EIF Dachfonds

The LfA-EIF Facility targets all technology areas.

Investment criteria

• Independent teams with complementary Venture Capital, 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 (including 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 LfA-EIF Facility 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).
• The fund should have an office in Bavaria

Contact

The LfA-EIF Facility is fully integrated in EIF's organisation. It is managed by:

• Dr. Markus Schillo
• Dr. Matthias Ummenhofer
• Robert Strachotta
• Team assistant: Martina Veit

        Tel.: +352 42 66 88 308
        Fax: +352 42 66 88 301
        E-mail m.veit@eif.org