InvestEU: EIF guarantees Ark Kapital to enable €146 million in new financing for high-tech SMEs

• European Investment Fund and Swedish Ark Kapital have signed an agreement to facilitate over €146 million in new financing for high-tech SMEs in Sweden, Denmark and Germany.
• This agreement was made possible with the support of the InvestEU programme, which aims to trigger more than €372 billion in additional investment over the period 2021-27.
• The agreement includes three thematic guarantee products aimed at sustainability, innovation and digitalisation, as well as skills and education.
• The collaboration, under which tech companies can get better lending terms, is expected to accelerate the financial inclusion for Swedish, Danish, and German high-tech SMEs.

Ark Kapital will benefit from a portfolio guarantee from the European Investment Fund (EIF) in order to improve the access to finance for high-tech small and medium-sized enterprises (SMEs). The transaction will allow Ark to award over €146 million in new financing across three thematic areas: Sustainability, Innovation and Digitalisation, as well as Skills and Education. The European Investment Fund’s backing of Ark Kapital through the InvestEU programme will allow the tech lender to offer better lending conditions to its clients, in the form of reduced interest rates.

Paolo Gentiloni, Commissioner for Economy, said: “The InvestEU programme is playing a significant role in providing the necessary funding to support high-tech small and medium-sized businesses across Europe. Access to finance is critical for SMEs to make a positive impact in the areas of sustainability, innovation and education and I’m delighted that today’s agreement will benefit such companies in Sweden, Denmark and Germany”.

Under the Innovation and Digitalisation Guarantee of the InvestEU programme, Ark Kapital will further support innovation and digitalisation driven enterprises, by enhancing access to finance for high growth tech companies, as well as by supporting the uptake of digital technologies and the digital transformation of enterprises.

EIF Chief Executive Marjut Falkstedt commented: “The thematic financing supported by the InvestEU guarantee helps bring targeted support to those parts of the economy that need it. The EU priorities of live-long learning, digitalisation and the quest for sustainability will only grow in relevance in our changing economies, making these guarantees an important support mechanism for companies. Ark Kapital is a longstanding partner of ours and we are happy to continue our journey together to the benefit of Swedish, Danish, Finnish and German SMEs.’’

Thanks to the InvestEU Skills and Education Guarantee, the company can enhance access to finance for enterprises active in the skills, education and training sectors, as well as providing ancillary services to skills, education and training, with a focus on educational technology (EdTech).

Lastly, through the InvestEU Sustainability Guarantee, Ark Kapital will be financing ICT solutions that explicitly aim to support the green transformation of the European economy, thus contributing to EU policy goals for the decarbonisation of EU economies.

"At Ark Kapital, we are proud to continue our partnership with the EIF to provide targeted financial support and better terms to European tech companies. As we navigate the changing economic landscape, it is clear that innovation across learning, digitalisation, and sustainability will only become more important. This agreement is another step towards ensuring the success and growth of the next generation of tech enterprises in Sweden, Denmark, and Germany." said Ark Kapital Co-founder Axel Bruzelius.

Background information

The European Investment Fund (EIF): The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Founded in 2021 by a team of dedicated experts in AI, Fintech and Lending, Ark Kapital uses its proprietary data engine AIM to provide financing to a market segment underserved by regular banks. Ark Kapital aids fast growing tech companies active in the European market in order to pave the way for the next new generation of technological innovation.

Press Contacts

EIB Group: Tim Smit, Tel: +352 691286423, t.smit@eib.org

European Commission: Flora Matthaes, Tel: +32 229 83951, flora.matthaes@ec.europa.eu