European Recovery Programme (ERP)

What is ERP?

ERP is a EUR 1bn fund of funds ("ERP - EIF Dachfonds") investing in venture capital funds focusing mainly on German based, high-tech early and development stage companies.  Even though those funds are not restricted to invest solely in German companies, the main focus of investments should be in Germany. ERP covers all technology areas (ICT, Life Sciences, energy-related, emerging and converging technologies).

EIF manages the facility on behalf of the German Federal Ministry of Economics and Technology (BMWi) and the European Recovery Programme (ERP), from which EUR 577m are committed to date. This amount is matched by co-investments from EIF, EIB and EU resources and has helped to raise almost another EUR 2bn from private investors.

ERP team is fully integrated in EIF's Venture Capital Equity Fund investments team and brings together fund of funds, venture capital investment and technology expertise:

• Head : Bjorn Tremmerie
• Ralf Emmerich
• Carsten Just
• Nitan Pathak
• Johannes Virkkunen

ERP:

• Seeks attractive financial returns
• Helps structuring and improving the business proposition of VC 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 VCs through EIF's large portfolio
• Is a reliable and active investor adding value throughout the investment process

What are ERP's investment criteria?

ERP aims at investing in independent fund management teams with complementary Venture Capital, technology and industry experience having an office in Germany. 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.

ERP-EIF aims at investing in funds which: 

• have a coherent 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;
• invest exclusively in SMEs according to the EU definition (less than 250 employees; Turnover not exceeding EUR 50m or net assets not more than EUR 27m);
• are indipendent (not more than a quarter of the fund's capital held by non-SMEs);
• have a commercially viable size for its stability and shooting power, concerning investments and follow-on financing needs;
• provide appropriate incentive for the whole team;
• treat all investors pari-passu;
• follow a commercial investment approach;
• have a clear legal and tax structure, including market standard terms and conditions;

What is ERP's investment process?

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. 

How to contact us

• For Venture and Risk Capital Fund managers raising funds
• For SMEs and entrepreneurs looking for finance