ETCI SCALE-UP CO-INVESTMENTS

Promoter – Financial Intermediary

FONDS EUROPEEN D'INVESTISSEMENT

Location

• EU Countries

Description

A co-investment facility with the EIF complementing the European Tech Champions Initiative (ETCI), whereby the EIB will co-invest alongside EIF-backed fund managers into innovative technology companies (mostly SMEs and mid-caps) to support their scale-up activities.

Additionality and Impact

Uncertainties linked to the current global economic prospects and high interest rates have intensified the difficulties for innovative and high-growth companies in accessing long-term affordable financing solutions. The difficulties arise from uncertainties in the market and inherent riskiness of innovative companies, their technologies and products, which leads to sub-optimal investment situation.

During the past decade, public support has focused principally on seed and early stage financing. Later-stage public and private capital in the EU was scarce, making tech companies reliant on foreign, non-EU, investors to support their further development. By co-investing with funds backed by EIF mainly through the European Tech Champions Initiative (ETCI), the Bank will address the equity gap for later-stage tech companies and enable some of the key future technologies to remain with EU investors.

Objectives

Under this Programme, the EIB and the EIF will work together to make a series of equity co-investments - mainly alongside ETCI-backed funds - into eligible EU-based scale-up businesses. The project will address the equity gap for later-stage companies that are in the need of larger investment amounts to scale up their businesses, which private investors are reluctant to provide.

Sector(s)

• Services - Financial and insurance activities

Proposed EIB finance (Approximate amount)

EUR 200 million

Total cost (Approximate amount)

EUR 1333 million

Environmental aspects

The EIF will use its own procedures and Environmental, Social and Governance principles to ensure that the financed companies and their investments are acceptable in environmental and social terms. Fund Managers will be required to include in the contractual documentation related to each Portfolio Company an obligation to comply, in all respects with all laws and regulations to which they are subject (including, but not limited to, laws and regulations on environmental and social matters).

Procurement

The final beneficiaries in which the co-investment facility will invest will be private companies not being subject to EU rules on public procurement and concessions. However, in case final beneficiaries are after all subject to EU public procurement legislation (i.e. Directive 2014/24/EU where applicable), then the EIF shall require that commercial fund managers take all the requisite measures to ensure that contracts for the implementation of the projects carried out by final beneficiaries will be tendered in accordance with the relevant applicable EU procurement legislation (i.e. Directive 2014/24/EU and Directive 89/665/EEC), as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.

Status

Signed - 22/12/2023