EUR 20 mio in Prime Technology Ventures II, a technology venture capital fund

The European Investment Fund (EIF) has signed a commitment to be a key 20% investor in Prime Technology Ventures II, a Netherlands-based multi-country venture capital fund focused on early stage companies in the software and communications sectors. The fund managers intend to invest primarily in Northern Europe (Netherlands, Sweden, Finland, Germany and the UK). Opportunities will be sought particularly within the fundamental drivers underlying developments in software and communications, categorised as data and wireless communication, enabling software and infrastructure services. The EIF investment totals some EUR 20m.

This is the 6th operation concluded by the EIF with Dutch venture capital teams, bringing the total amount of EIF investments in the funds managed by these teams to approximately EUR 90m.

Prime Technology Ventures, founded in 1999, is an established and recognised player on the Dutch venture capital scene and is now launching its second fund.

The EIF is the European Union's specialised financial institution for venture capital and SME guarantees. Based in Luxembourg, the EIF was established in 1994 as a joint venture between the European Investment Bank (which has become its majority shareholder), the European Commission and European banks and financial institutions.

The EIF is now a major player in the European venture capital market: it has invested in some 145 funds all over the EU as well as in Central and Eastern Europe. Its venture capital portfolio amounts to EUR 1.8 billion and it is expected that some 60 new funds for an overall amount of about EUR 800 million will be put in place this year. The investment strategy of the EIF focuses essentially on the promotion of European technology through investments in venture capital funds located in the Union and the Accession Countries.

EIF guarantee instruments facilitate access to debt finance for SMEs through the intermediation of a wide range of banks and financial institutions. The latter are allowed to allocate capital to those operations at a rate of 20% in accordance with EIF's status as a Multilateral Development Bank under the European Solvency ratio Directive.