Venture debt or quasi-equity is financing tailored for fast growing, innovative SMEs and mid-caps seeking to accelerate their growth and invest in research and development. It shares features of both a loan and an equity investment: the repayment is aligned with the performance of the company.
Four key benefits
Here are the benefits of venture debt
The financing does not dilute the founders’ ownership stake, keeping motivation high, while complementing the equity capital.
Loans can be secured or unsecured and provide different levels of subordination (including contingent/participating loans).
The EIB assumes no direct involvement in daily management.
The EIB’s financing is often seen as a quality stamp, helping the project attract additional investors.
Find out if financial support might be available to you
Who is eligible
SMEs and mid-caps
What is eligible
Investments in research & development (purchase or renovation of assets, increasing working capital, etc) which are undertaken over a period of up to 3 years. Minimum commitment of €7.5 million, covering a maximum of 50% of the total investment costs. Companies must be able to demonstrate sound corporate governance, viable business plans, and sustainable capital structures. The investments must target EIB priorities (especially Innovation and Skills).