EC and EIF support funds investing in eco-innovative SMEs

[για μετάφραση κλικ στην ελληνική σημαία δεξιά]
The European Commission supports the development of eco-innovative enterprises, particularly SMEs, by facilitating their access to finance through the European Investment Fund (EIF).
One aim of the Competitiveness and Innovative Framework Programme (CIP) is to improve access to finance for the start-up and growth of small and medium-sized enterprises (SMEs) as well as to enhance investment in innovation activities. This is also encouraged by supporting the emergence of a performing European venture capital market.
Total CIP resources from the Commission allocated to financial instruments amount to €1.1 billion for 2007 to 2013. Approximately half of them are budgeted for the CIP High Growth and Innovative SME Facility (GIF) targeting the lack of capital for innovative SMEs with a high growth potential. The facility is implemented by the EIF – a specialised EU financial institution supporting SMEs.
The EIF has significant means – at the end of 2008 it had a portfolio of €4.5 billion invested in 299 venture capital funds and the mandate to invest substantially more. Its funding comes from the European Investment Bank (EIB), European Commission and Member States under different mandates. EIF makes equity investments in venture capital funds that support particularly technology-oriented SMEs in the early and later stages of development, acting as a fund of funds. It is in this context that EIF implements GIF for the Commission.
There are two GIF windows: one aimed at risk-capital funds targeting investments in SMEs that are in seed and start-up stage (GIF 1); and the other for those targeting expansion-stage SME investments (GIF 2).
For risk-capital funds focused on eco-innovative SMEs, higher investment rates are allowed under GIF. In GIF 1, EU investment may represent up to 50% of fund size compared with 25% for funds investing in more traditional industrial sectors. With GIF 2, the financing caps are 25% for eco-innovation and 15% in other cases.
Under GIF, a specific ‘envelope’ of over €200 million is dedicated to venture-capital funds with an eco-innovation focus. EIF has committed more than €50 million in four deals with eco-innovative funds – see BOX.
More information:
European Investment Fund: http://www.eif.org/
European Investment Bank: http://www.eib.europa.eu/
GIF investment policy: http://www.eif.org/venture/resources/european_commission/gif1_gif2/index.htm