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InnovFin Corporate Research Equity

InnovFin Corporate Research Equity

InnovFin Corporate Research Equity increases the supply of equity-type financing under the European Fund for Strategic Investments (EFSI) to large research and innovation (R&I) programmes and to innovative large mid-caps and small or medium-sized enterprises (SME). It addresses the market gap for large equity-type investment in the form of contingent loans, in particular with mid- to long-term repayments profile that are directly linked to product development cycles.

The investments are deployed by the European Investment Bank (EIB) or through a financial intermediary and target amounts of EUR 75 million.

Eligibility

Scope

InnovFin Corporate Research equity aims at increasing the supply of equity-type financing under the European Fund for Strategic Investments (EFSI).

The financing must support an underlying R&I programme and consist of an equity type operation under EFSI.

Mid-caps and SMEs, can also be eligible for InnovFin Corporate Research equity if they comply to the following eligibility criteria for growth finance under EFSI:

  • Less than 3 000 full-time employees at the time of application
  • Raised already one or more rounds of financing with financial or strategic investors
  • Demonstrate sound corporate governance, viable business plans, and sustainable capital structures
  • Additionally, a mid-cap or SME must meet the innovation criteria laid out below.

Geography

Projects eligible for InnovFin Corporate Research Equity financing must be located in one or more EU Member State and/or in one or more of the Horizon 2020 Associated Countries.

Projects also need to fall under the geographical scope of EFSI: a EU country or a cross-border project involving a EU country and extending to Enlargement countries(Western Balkans, Turkey), EU Eastern and Southern NeighbourhoodEEA/EFTA (Norway, Switzerland, Liechtenstein), Overseas Countries and Territories.

Innovation criteria for SMEs and mid-caps

InnovFin Corporate Research Equity is also targeted towards small and medium-sized entreprises (SMEs) or mid-caps (less than 3 000 employees) which are fast-growing and/or innovation-driven.

To be considered innovative under Innovfin Corporate Research Equity, companies must comply with at least one of the following statements:

  • Intention to use EIB growth financing under EFSI to invest in producing or developing products, processes and/or services that are innovative and where the business plan indicates a risk of technological or industrial failure, or a business risk
  • The company’s registered office is in a science, technology or innovation park, technology cluster or technology incubator, in each case with activities relating to R&I
  • The company has benefited from tax credit or tax exemption related to R&I investment in the last 24 months

For fast-growing companies with high turnover or employment rate

  • Average annualised growth in turnover greater than 10% a year, over a three-year period
  • Average annualised growth in full-time employees of at least 5% a year, over a three-year period (with one hundred or more employees at the beginning of the observation period)

For innovation-driven companies or companies with significant innovation potential

  • Its certified accountant has highlighted in the latest financial statements R&I expenses/investment that are at least equal to 5% of its annual turnover
  • The company undertakes to spend an amount at least equal to 80% of the EIB financing on R&I expenses/investment in the next 36 months as indicated in its business plan
  • It has been formally awarded grants, loans or guarantees from European R&I support schemes (e.g. Horizon 2020 or FP7) or through their funding instruments (e.g. Joint Technology Initiatives, “Eurostars”) or through a national or regional research or innovation support scheme over the last 36 months
  • It has been awarded an innovation prize over the last 24 months
  • It has registered at least one patent in the last 24 months
  • It has received an investment from a private-equity fund or from a business angel that is a member of a business angel network; or such a private equity fund or business angel is a shareholder of the company at the time of its application for the EIB loan

How to apply?

Find out on this page how you can benefit from InnovFin Corporate Research Equity.



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