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Introducing the European Investment Fund. What is the EIF?. “. We’re the leading developer of risk financing for entrepreneurship and innovation across the EU. ”. Helping SMEs, micro-enterprises and European regions innovate and grow by making finance more accessible.

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what is the eif
What is the EIF?

We’re the leading developer ofrisk financing for entrepreneurshipand innovation across the EU

HelpingSMEs, micro-enterprises and European regions innovate and grow by making finance more accessible

Fulfillingour dual goal and pursuing EUpolicy objectives as well as financial sustainability

Addressingmarket needs by acting as a countercyclicalinvestor in tough economic times

Workingwith financial intermediaries across the 28 EU countries, EFTA and all Accession countries

eif s shareholders
EIF’s Shareholders

EIB (62.2%)

European Commission (30%)

Financial Institutions (7.8%)

our o bjectives
Our objectives

To support smart, sustainable andinclusive growth

Working with a broad rangeof financial intermediariesto provide credit enhancementand invest in venture andgrowth capital

Being Europe’s cornerstone venture and growth capitalinvestor, leading catalystto promote SME lendingand microfinance

Promoting cohesionand regional and social development

Bringing together nationalpublic and private partners tosupport innovation and entrepreneurship

Filling the financing gapsin Europe’s economy

helping businesses at every stage
Helping businessesat every stage

Public Stock Markets

Portfolio Guarantees & Credit Enhancement

Formal VC Funds & Mezzanine Funds

Microcredit

VC Seed & Early Stage

Business Angels,Technology Transfer

PRE-SEED PHASE

SEED PHASE

START-UP PHASE

EMERGING GROWTH

DEVELOPMENT

SME Development Stages

HIGHER RISK

LOWER RISK

our counterparts
Our counterparts

We work with a wide range ofcounterparts to support SMEs

Fund providers and Mandators

Intermediaries and counterparts

micro-enterprises,

SMEsand small mid-caps

  • European Investment Bank
  • European Commission
  • Member States
  • Managing Authorities
  • Funds of Funds
  • Corporates/private
  • Public institutes
  • Commercial Banks
  • Development &Promotional Banks
  • Guarantee Institutions
  • Leasing Companies
  • Fund Managers
  • Microfinance Institutions
our resources
Our resources

We manage resourcesfromdifferent stakeholders

  • National & Regional Funds
  • 20 European and regionalFunds-of-Fundsincluding Germany, Portugal, Spain, Turkey, UK
  • 14 Holding Fundssupported by structural fundsEUR1.3bn
  • European Investment Bank
  • Risk Capital Resources (RCR)EUR7bn
  • European Commission
  • Competitiveness and Innovation Framework Progr. (CIP) EUR1bn allocated to equity and guarantees
  • Risk-Sharing Instrument (RSI) EUR 270m
  • Progress MicrofinanceEUR 200m
our impact
Our impact

Over 1 Million SMEs supported in 30 different countries.

EUR 11.7bn in equity and guarantees commitments have mobilised over EUR 70bn from partner banks, investorsand other market players.

Broad European coverage,- 20 Funds-of-Funds/Holding funds,- 400 Venture and Growth Capital Funds,- 150 banks, guarantee and promotional institutions

helping start ups
Helping start-ups

Young, innovative companies are keyto our knowledge society, but they can beseen as risky and thus hard to fund

Working withleading venture capital fund investors,backingventure funds including the top quartile

We’re helping build an effective, liquid European Venture Capital market to supportthese start-ups; EIF has invested in 80% of active European Venture Capital

supporting established businesses
Supportingestablished businesses

..by helping them to find the growth

capital and mezzanine funding theyneed to keep growing

We offera toolbox of growthcapital products tailored to their specific needs

Our long-term mezzanine funding helps late stage tech andother more mature companies togrow and expand

involved throughout the business cycle
Involved throughoutthe business cycle

TechnologyTransfer Accelerator

Investing inVC funds

Investing inGrowth Capital

EIF Current Investment Focus

Mezzanine

Technology Transfer

Proof of Concept

Business Angels

Seed Stage

EarlyStage

Business Angels

Expansion/DevelopmentCapital

LowerMid-Market

Instruments to stimulateinnovation, competitivenessand cross-border investment

Support VCecosystemanddecreasedependencyon public finance

Catalyse hybrid debtfinance for growth

Fill funding gap left by institutional investors

Strategic Challenges

European Commission Resources

EIB / EIF Resources

Member States / Private Sector Resources

slide12

European Angels Fund – Key Points

  • Co-Investments with Business Angels and other non-institutional investors
  • Selection of Business Angels by the European Investment Fund (Adviser)
  • German Pilot (EUR 70m) operational since March 2012 – developed in close cooperation with Business Angels and BAND (Business Angels Network Germany)
  • Pan-European roll-out within the next 3–4 years

EUROPEAN ANGELS FUND“Wings For Europe”

slide13

How does the European Angels Fund work?

  • Maximum amount of freedom for Business Angels(general delegation of all investment decisions)
  • Trust relationship structure & Co-Investment Framework Agreement (CFA)
  • 50:50 matching of the capital invested by Business Angels(total volume available under each individual CFA: EUR 250k – 5m during the lifetime of the agreement)
  • No fees, but attractive profit-sharing (Carry payments)
  • Investment-related costs shared by EAF on pro-rata basis
  • Administrative workloadreducedto a mimimum

EUROPEAN ANGELS FUND“Wings For Europe”

slide14

EIF’sviews on the Nordicmarket

  • The Nordic market is oneofthemost mature in Europe
  • EIF has strongrecordofinvestmentsacrossthe region
  • Deep technologyleadershipavailable in several segments, e.g. Cleantech, Life Sciences, ICT/Mobile
  • High qualityuniversity and researchinstitutions
  • Recentsuccessstoriessuch as e.g. QlikTech, Skypeand Spotify, raisestheawarenessofinternational investors
  • Timing is right. European Commission and EIB Group ready to do more as marketneedsbecomeurgent
slide15

EIF TT Transactions

Research commercialisation / TT

Sweden: KarolinskaDevelopment

Business Creation and Acceleration

Latvia: Imprimatur Capital, Seed and VC fund

Sweden: Chalmers Innovation

UK: Cancer Research Technology

Lithuania: Strata/Mes Business Angel Co-investment fund

UK: UMIP Premier Fund

UK: IP venture fund UK

Lithuania: Practica Incubator and follow-on fund

Belgium KU Leuven CD3

Bulgaria : Eleven Start-up accelerator

Start-up accelerators

Belgium: NausecaBusiness Angel fund

Bulgaria : LaunchUp

Start-up accelerator

3T (Telecoms Institutes)

France: Inria IT2: Digital technologies

Elaia (Applied Maths – ENS, Dauphine, Collège de F, X)

Greece: Openfund, Seed Fund

Greece: Piräus Fund, Seed Fund

encouraging lending by sharing risk
Encouraging lendingby sharing risk

We provide a wide range of products addressingSME needs and helping our intermediariesincrease their lendingcapacity to SMEs

Protectingour financial intermediaries’ capital by sharing the risk they take when lending to SMEs

  • Providing“First loss” guarantees,risk sharing instrumentsand credit enhancement
  • SMEs benefit from reduced collateral requirements
  • Guarantees are often providedfree of charge, which benefitsSMEs

We make it easierfor financial institutions to transfer credit risk to capital markets

optimising ec resources
Optimising EC resources

We manage programmes for the EC that deploySME funding to promote entrepreneurshipand innovation across Europe

  • The Competitiveness &Innovation Programme(CIP SMEG)
  • Available budget of over EUR 600m
  • Committed budget of EUR 420mexpected to mobilise EUR 7bn
  • 53 transactions signed in 20 European countries
  • The Risk-SharingInstrument (RSI)
  • Pilot project
  • Supporting innovation
  • Launched in Dec 2011,targeting innovative and research-orientedSMEs and small mid-caps
  • Progress Microfinance
  • EUR 200m provided bythe EC and the EIB
  • Supporting micro-enterprises and thesocial economy
  • More than 50% committedat June 2012
why are micro enterprises so important
Why are micro-enterprisesso important?

Micro-enterprises are a key partof European business

92%

of enterprisesacross the EU aremicro-enterprises

99%

of the start-ups created in theEU every yeararemicro- andsmall enterprises

33%

of these start-upsare launched by unemployed people

how do we help them
How do we help them?

Our toolkit helps micro-entrepreneurs andself-employed, who find it hard to get finance,to start up and grow their businesses

Complementary Initiatives

  • Progress Microfinance
    • Guarantees and cash products
    • Bank and non-bankintermediaries
    • Social impact / employment focus
    • EUR 200m provided by the EC and the EIB
    • Focus on EU-28
    • EUR 120m committedso far in 12 Europeancountries

Joint Action to Support Microfinance Institutions (JASMINE) TechnicalAssistance

Joint European Resources for Micro

to Medium Enterprises (JEREMIE)

CIP Micro

eif managed fund of funds and holding funds across europe
EIF-managed Fund-of-Funds and Holding Funds across Europe

Fund-of-Fund Activity

Holding Funds Supported by Structural Funds (JEREMIE)

LITHUANIA: EUR 67.1m

ROMANIA: EUR 100m

MALTA: EUR 10m

PACA (FR): EUR 20m

SLOVAKIA: EUR 100m

SICILY (I): EUR 60m

SICILY ESF (I): EUR 15m

UK FTF: GBP 200m

ERP (DE): EUR 1000m

LFA-EIF (DE): EUR 50m

Dahlia (FR): EUR 300m

NEOTEC (SP): EUR 183m

PVCi (PT): EUR 111m

iVCi (TR): EUR 160m

  • BIF (LT,LV,EE): EUR100m
  • DVI (NL): EUR 150m
  • PGFF (PL): EUR 90m

BULGARIA: EUR 349m

CALABRIA (I): EUR 45m

CAMPANIA (I): EUR 90m

CYPRUS: EUR 20m

EXTREMADURA (ES) : EUR 10m

GREECE: EUR 250m

LANGUEDOCROUSSILLON (FR): EUR 30m

Future initiatives

LFF (LU): EUR 150m

delivering financial engineering with structural f unds
Deliveringfinancial engineeringwith Structural Funds
  • Disbursement
  • Up front
  • Irreversible
  • Local Holding Fund
  • Greater delegation to Local Authorities
  • Management/administration are outsourced toa Holding Fund Manager which is selected bythe Member State / region Holding Fund Manager
  • Role of the Holding Fund Manager
  • Structure investments, select Financial Intermediaries
  • Administer, monitor & report on investments
  • Attract a syndicate of investors
  • Closely collaborate with national/regional authorities

European Commission

ERDF – DG Regio

EU Level

Managing Authority

National

or regional Level

Holding Fund / Holding Fund Manager

Financial intermediaries

National/ Regional/ Local Level

Regional/ /Local Level

SMEs and micro-enterprises

selected financial intermediaries working with eif under jeremie
Selected Financial Intermediaries working with EIF under JEREMIE

A network of private investors to manage and mobilise structural funds

what next

What next?

Section Five

equity instrument development 2013 and b eyond
Equity Instrument Development 2013 and beyond

Social Impact Accelerator (SIA)

EIF crisis response toolbox

Mezzanine Facility for Growth

Corporate Innovation Platform

Horizon 2020 / Equity for Researchand Innovation TT-POC-Start-up

COSME / Equity for Growth

European Angel Co-Investment Fund

EIF as entrusted entity for Horizon 2020 / COSME

Tech Transfer

Proof of Concept

Business Angels

Seed Stage

EarlyStage

Expansion/DevelopmentCapital

LowerMid-Market

European Commission Resources

EIB / EIF Resources

Member States / Private Sector Resources

guarantee instruments development 2013 and beyond
Guarantee Instruments Development 2013 and beyond
  • Risk tolerance Deal rationaleFinancial InstitutionsPricingLeverageSelf-sustainabilityTarget Beneficiaries

*First lossproductguarantee

SMEG(First Loss)

FLPG(First + 2nd Loss)

Credit Enhancement(Second Loss)

RSI(uncapped)

ABS wrap(Senior)

strengthening p artnerships with stakeholders
Strengtheningpartnershipswithstakeholders
  • European Investment Bank
  • Invest additional Equity and Mezzanine Funds arising from EIB Capital Increase
  • Optimise joint operations to provideliquidity, risk sharing and capital relieftoSME banks
  • European Commission 2014-2020
  • Deploy “Competitiveness for SME’s” (COSME) programme (DG Enterprise)
  • Key role in financing innovation through Horizon 2020 (DG Research)
  • Expand microfinance and socialinvestment (DG Employment)
  • Member States, Accession Countries and national institutions
  • Equity Fund of Fund tool box
  • Structural fund instruments and management
  • Advisory / know-how transfer
  • Joint initiatives with Development Banks and Guarantee Institutions across the EU
elaborating new partnership models with member states and national institutions
Elaborating new partnership models with Member States and national institutions

Venture Capital

Guarantees

EIF as delegatedFund Manager

Examples

Examples

JEREMIE Holding Funds (Greece, Romania, Slovakia, Malta)

UK FTF, ERP Germany, Neotec,IVCi, PVCi, Dutch VentureInitiative, Luxembourg Future Fund

Western Balkans Guarantee Fund

Co-investingPartnerships

European Angels Fund

BGK Poland, Italian Confidi, German Förderbank, ICO Spain

Complementarityand MutualReliance

BMWiGermany, CDC France, FondoItalianod’Investimento, Knowledge Transfer Strategic Partnership

AWS Austria

KfW

OSEO France

partnerships with national institutions c reating infrastructures
Partnershipswith national Institutions: creating infrastructures

The Baltic Innovation Fund – a unique partnership built upon the success of the Structural Fund activities

  • Strong market feedback and international recognition

EIF’s first multi-country ‘Fund of Funds’

EUR 100m with EUR 40m fromEIF and EUR 20m from 3 key national institutions

Over EUR 200m catalysedto focus on enhancing the availability of VC and PE financing for early and growth stage companies in the Baltics

Cooperative development process led by EIF and involving public andprivate players

A strategy designed to create greater levels of private sector equity investments across the Baltic region

expanding the geographical reach
Expanding thegeographical reach

Reaching 11 additional Member Statesand regions by the end of 2015

Existing mandates

  • Objectives
  • Actively pursue managementrole in existing countries andnew regions
  • Diversify source of capital
  • Leverage public funds
  • Buildsustainablemarkets

Structural Funds / IPA

Initiatives for 2013 - 2015

Member States funds of funds

contact details
Contact details
  • David Yormesor
  • d.yormesor@eif.org
  • European Investment Fund96, boulevard Konrad AdenauerL-2968 Luxembourg
  • +352 2485 1