European Innovation Fund equity investments exceed €500mEuropost
The European Commission announced the second round of direct equity investment through the European Innovation Council (EIC) Fund. Since it was launched in 2020, the EIC Fund has already approved 111 investments in highly innovative start-ups and small and medium-sized businesses (SMEs) totalling more than €500 million to scale up breakthrough innovations in areas such as health, circular economy, and Internet of Things (IoT).
“The EIC Fund has developed incredibly quickly and has established itself as a new force in EU technology investments. This unique form of financing combining grants and equity is proving itself highly attractive to Europe's most promising startups, and providing them with the means to develop and scale their businesses in Europe”, Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth said.
The latest announcement represents 69 new investments. This provides a strong foundation for the EIC fund under Horizon Europe, which is expected to invest more than €3.5 billion over the next 7 years. “ The equity investments, ranging from €0.5 to €15 million per company, complement the grant financing of up to €2.5 million, which has already been provided through the EIC Accelerator. All investments are preceded by a thorough evaluation by external experts, a due diligence process overseen by the EIC Fund Investment Committee, and a final decision by the EIC Fund Board of Directors. The EIC Fund's ownership stakes range from 10% to 25% and is typically used to leverage in other investors as part of a larger financing round.