Finance for small, high-risk and incredibly innovative projects
The European Investment Bank has a unique take on a standard market product known as “venture debt”. The EIB aims to fill the market gap that afflicts European companies of medium size, where the financing needed is between EUR 7.5 million to EUR 50 million.
Here’s how it works
We commit sizeable amount of capital for the long-run which allows innovative companies to focus more on growing their business than constantly chasing investors. Steady repayment of the loan would drain the company’s coffers just when it needs to be investing in research and development. Alternatively, an equity investment would dilute the people who bore the risk of financing the early years of development.
Venture debt gives a unique advantage to strategic investors as the investee companies can use the capital to scale up the business. Additionally, the EIB’s venture debt provides a quality stamp and positive signaling effect, catalysing additional financing from other sources.
Listen to our podcast and hear what our experts have to say about the EU bank’s venture debt.
Why choose EIB’s venture debt
We provide capital to innovative, new companies without making them focus more on repaying their debts than on growing the business.
- Our financing is not dilutive and it is complementary to equity investments
- We commit large volumes of venture debt from EUR 7.5 million up to EUR 50 million
- You can benefit from longer repayment periods of 5 years with 2-3 year availability periods
- You can focus on product development not on raising funds
- We are a triple-A investor with a long-term strategic view
- We have a hands-off approach with no direct involvement in daily management
Discover some of our deals
So far over 40 innovative businesses have benefited from EIB’s venture debt. Here’s what it means for a few of them:
Ultimaker, a Dutch company, pushes the boundaries of 3D printing technology and creates a lifeline for amputees in developing countries.
What if you could cover your home or office with a thin film that acted like a giant solar panel? Heliatek, an innovative German company, brings solar energy generation to the heart of the city.
The key ingredient in powerful devices for storing energy has been charred coconut. Now Skeleton technologies, a company in icy Estonia, has figured out how to make a supercapacitor without tropical fruit.
Innovative companies supported so far
Venture debt targets European companies with up to 3 000 employees in the field of Biotech & Life sciences, Software & ICT, Engineering & Automation, Renewables & Clean tech
The venture debt team will process applications as soon as possible. The time between the first contact with the EIB and the signature of a financing contract will typically take 3-6 months, depending on whether you have provided all the information needed. Please, note that the selection process is very rigorous and ultimate signature depends on obtaining all necessary approvals and clearances.
Venture debt events
- 1st Venture Debt Summit
22 March 2018, Luxembourg
With EIB President Werner Hoyer