News: European Innovation Council Equity Fund has become an official entity
The EIC Fund, which will provide equity from €0.5m to €15m to breakthrough innovation companies selected for EIC Accelerator blended finance support (grant and equity), has become an official entity. This is the first time the European Commission will make such direct equity investments in companies, with ownership stakes expected to be in general from 10% to 25% in start-up companies. The European Investment Bank, as advisors of the EIC Fund on behalf of the European Commission, will manage the ownership stakes of the European Commission.
The EIC Fund fills the funding gap at the start-up stage where the EU venture capital market underperforms compared to the global venture capital market.
Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth said:
“The EIC Fund – the first of its kind - will help our most innovative start-ups and SMEs rapidly bring their innovative products to European and global markets, while growing their companies and talent within the EU. Currently so much economic growth and jobs potential is lost because with these companies are seen as too high-risk for the private venture capital market.”
Since the start of the EIC Accelerator Pilot in the autumn of 2019, a total of 102 start-ups and SMEs active in all technology intensive sectors (health, digital, energy, etc.) have been pre-selected for equity financing for a total of nearly €400m. Further companies will be preselected by the EIC Accelerator Pilot in July (in Green Deal areas) and November. These companies are being subject to due diligence by the European Investment Bank (EIB), which acts as the investment Advisor to the EIC Fund.
In addition to equity funding, EIC Accelerator-supported companies receive grant funding of up to €2.5 million and have access to mentoring, business coaching and matchmaking with investors, corporates and likeminded entrepreneurs.
Read the full press release here >> https://ec.europa.eu/info/news/official-entity-european-innovation-council-equity-fund-high-impact-innovation-2020-jun-22_en