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Risk Finance

Access to Risk Finance

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  The specific objective is to help remedy market deficiencies in accessing risk finance for research and innovation.

The investment situation in the research and innovation (R&I) domain is dire, particularly for innovative SMEs and mid-caps with a high potential for growth. There are several major market gaps in the provision of finance, as the innovations required to achieve policy goals are proving too risky, typically, for the market to bear.

A facility for debt ('Debt facility') and a facility for equity ('Equity facility') will help overcome such problems by improving the financing and risk profiles of the R&I activities concerned. This, in turn, will ease access by firms and other beneficiaries to loans, guarantees and other forms of risk finance; promote early-stage investment and the development of new venture capital funds; improve knowledge transfer and the market in intellectual property; attract funds to the venture capital market; and, overall, help catalyse the passage from the conception, development and demonstration of new products and services to their commercialisation.

1. Dept facility

  • will provide loans to single beneficiaries for investment in R&I
  • guarantees to financial intermediaries making loans to beneficiaries
  • combinations of loans and guarantees
  • guarantees and/or counter-guarantees for national or regional debt-financing schemes

2. Equity facility

  • The Equity facility will focus on early-stage venture capital funds providing venture capital and/or mezzanine capital to individual portfolio enterprises. These enterprises may, in addition, seek debt financing from financial intermediaries implementing the Debt facility.
  • The facility will also have the possibility to make expansion and growth-stage investments in conjunction with the Equity Facility for Growth (EFG) under the Programme for the Competitiveness of Enterprises and SMEs.

 

 

 

 

 

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