- The EIB has presented its unique growth financing product for innovative start-up companies to Spanish investors, institutions and business representatives
- The EU bank provides around EUR 600 million of financing per year under its venture debt product, supporting thousands of highly-qualified jobs since 2016
The European Investment Bank (EIB) presented in Madrid its unique take on a standard market product known as “venture debt” to the Spanish venture eco-system. The bespoke EIB financing tool supports highly innovative companies in cutting-edge technology sectors.
EIB Vice-President Emma Navarro, opening the event, said: “Innovation is key to ensure sustainable growth and to create highly-qualified jobs. The EIB´s venture debt product aims at providing European and Spanish start-ups and growth stage companies with a tailored made financing option that enables them to invest and scale up their business. This is a key product to strengthen competitiveness and to promote innovative businesses in the EU.”
Throughout the day, EIB experts presented the EIB venture debt product to leading Spanish investors, innovators and institutions. The product combines the advantages of a long-term loan with a remuneration model based on the company’s performance, and helps to strengthen the borrower’s economic capital without excessively diluting existing investors or founders. The venture debt product, developed in response to the growth capital market gap in Europe, is backed by the European Fund for Strategic Investments (EFSI), the financial pillar of the Juncker Plan. EFSI support has helped the EIB to considerably expand its venture debt lending.
The EIB venture debt can help Spanish innovative companies to grow further while increasing their competitiveness, as this unique product targets the investment needs in research, development, and innovation.
In only three years, the EIB became Europe’s largest provider of venture debt, with around EUR 600 million per year invested in long-term venture financing for highly-innovative companies. Since the start of its venture debt operations in 2015, the Bank has provided more than EUR 1.9 billion to over 90 companies in sectors such as life science, robotics and artificial intelligence. These investments are expected to support over 25,000 high-quality jobs and around EUR 16 billion in additional investments in European R&D.
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