VARJO (EGF VD)

Promoter – Financial Intermediary

VARJO TECHNOLOGIES OY

Location

• Finland

Description

Varjo is a Finnish company founded in 2016, that develops human-eye resolution virtual and mixed reality headsets. Varjo's products are specifically designed to meet high demanding enterprise use cases in various areas including training and simulation, design and engineering, research and medical.

Additionality and Impact

Varjo is a Finnish company founded in 2016, that develops human-eye resolution virtual and mixed reality headsets. Varjo's products are specifically designed to meet high demanding enterprise use cases in various areas including training and simulation, design and engineering, research and medical.

The project supports the policy objective of support for SMEs, as well as innovation and digitalisation by providing tailored venture debt financing to an innovative start-up developing high definition Virtual Reality (VR) / Extended Reality (XR) hardware and software for industrial use. The project entails positive knowledge spill-overs related to VR/XR technologies, benefiting business and research partners and strengthening the capabilities for digital technologies in the EU.

EIB's financial contribution facilitates the SME's sustainable growth and helps to maintain its technological edge, despite the adverse economic conditions resulting from the COVID-19 outbreak. Furthermore, it provides a positive signalling effect to crowd-in further financing from private investors.

EIB Venture Debt financing is a highly differentiated form of non-dilutive growth financing which entails large amounts, long availability period and long maturities.

Objectives

The project aims to help Varjo mitigate the impacts of the COVID-19 pandemic, mainly by supporting the company's investments in research, development and innovation to execute on and scale up its growth strategy.

Sector(s)

• Services - Information and communication

Proposed EIB finance (Approximate amount)

EUR 20 million

Total cost (Approximate amount)

EUR 47 million

Environmental aspects

The project activities do not fall under the Annexes I or II of the EU Directive 2014/52/EU amending the EIA Directive 2011/92/EU. The project will be carried out in existing facilities, already authorised, that will not change their scope due to the project. As such, the project activities are not subject to a mandatory Environmental Impact Assessment.

Procurement

The promoter is a private company not operating in the utilities sector and not having the status of a contracting entity, thus not being subject to EU rules on public procurement. Under these conditions, the procurement procedures followed by the promoter are suitable for the project.

Status

Signed - 3/11/2021