Pan-European Venture Capital Fund(s)-of-Funds programme

The Pan-European Venture Capital Fund(s)-of-Funds programme (VC FoF programme) aims to further address Europe’s equity gap, the fragmentation of the VC market and to attract additional private funding from institutional investors into the EU venture capital asset class.

The Programme is sponsored by the European Union (EU) and forms part of the Investment Plan for Europe, the Capital Markets Union Action Plan, Digital Single Market strategy, the Single Market Strategy and Open Innovation strand of Horizon 2020.

Under the Pan-European VC FoF programme EIF is looking to invest, using resources of the Horizon 2020 InnovFin Equity facility, EFSI Equity Instrument, COSME Equity Facility for Growth and EIF’s own resources, in private-sector led, market-driven Pan-European VC Fund(s)-of-funds (the Fund(s)-of-Funds).

Under the Pan-European VC FoF programme, EIF targets investments in qualifying Fund(s)-of-Funds for the aggregate target amount of EUR 300 million. Additional funding may be available depending on the interest in the Programme.

Via the Programme, EIF will commit equity financing to the Pan-European VC Fund-of-Funds:

• on a pari-passu basis with other investors in the Fund;
• preferably in the first closing;
• at least 7.5% of the Fund’s total commitments;
• up to 25% of the Fund’s total commitments;
• within a limit of 300 million euros.

Promoter(s) which aim to set up and manage a Pan-European VC Fund-of-Funds, which:

• pursues balanced strategy with targeted allocation to Early stage of at least 30% of the Investee Funds aggregate investable amounts;
• is able to reach critical mass to effectively execute its strategy targeting at least EUR 500 million fund size credibly achieved within 12 months;
• fits with one or more policy fit criteria set out in the Call documentation, in particular focuses on investee funds targeting the societal challenges and industrial leadership of Horizon 2020;
• is able to fundraise from independent private investors for at least 50% of the Fund-of-Funds’ commitments
• targets to invest, through or alongside its Investee Funds:

-at least 50% of the Investee Funds’ aggregate investable amounts into enterprises established or operating in the EU;

-in at least 4 EU Member States or Horizon 2020 Associated Countries, out of which at least 3 Member States of the EU.

• is (to be) established (domiciled) in the EU;
• is managed by an independent management team operating in the EU and controlled by individuals or privately held entities;
• carries out activities which do not breach ethical principles or contravene EIF or Horizon 2020 restricted sectors.

Other criteria apply as set out in the Call documentation provided below.

• Under the Programme, EIF will commit to selected Fund(s)-of-Funds up to 25% of total commitments of the Fund-of-Funds at EIF’s closing. The maximum size of each investment in a selected Fund-of-Funds is limited to EUR 300m. EIF will decide on the amount of investment to be made under the programme as well as funding sources depending on the results of the EC and EIF’s assessment and the investment strategy of the Fund.
• The Fund(s)-of-Funds will then in turn invest in investee funds on the basis of their investment strategy.
• The investee funds will need to meet certain minimum criteria relating inter alia to the governance, sector and stage focus.
• The Fund(s)-of-Funds will be required to comply with the minimum allocation requirement under the Programme as set out in the Call documentation.
• The Fund(s)-of-Funds will be responsible for reporting to the EIF on the portfolio of investee funds and their investee companies on a regular basis.