Kanpur Investment：InnovFin Equity

The EIF and the European Commission (EC) have launched specific COVID-19 support measures under InnovFin Equity. These measures are a continuation of the EC’s commitment to bring immediate relief to hard-hit enterprises, and are part of the package of measures announced by the EIB Group on 16 March to further support for Europe’s SMEs and mid-caps.

Under these measures, the EIF aims to enhance its support to existing and prospective InnovFin financial intermediaries through modified terms and conditions, whilst alleviating the fundraising difficulties amidst the COVID-19 pandemic. The detailed scope of the modified terms and their application are listed below in the Addendum introducing the InnovFin COVID-19 Support Measures.

In addition, the measures include a new “Recovery Equity Facility for Innovative Technology Companies” (RE-FIT Facility) dedicated to mitigate cash-burn effects on portfolio companies and strengthen their capital base in light of potential solvency issues. The EUR 100m RE-FIT Facility is available to InnovFin financial intermediaries - the detailed terms and conditions are listed below in the Addendum introducing RE-FIT Facility.

You will find here an overview of the InnovFin Equity support measures including the key features of the new RE-FIT Facility.

Find out more about the InnovFin Equity programme lower below.

The InnovFin Equity programme - managed by the EIF - is part of “InnovFin – EU Finance for Innovators”, an initiative launched by the European Commission (EC) and the EIB Group in the framework of Horizon 2020.

InnovFin Equity provides equity investments and co-investments to or alongside investment funds, focusing on companies in their early stages of development, operating in innovative sectors covered by Horizon 2020. The aim is to develop an extensive portfolio of funds, mobilising EUR 4-5bn of investments in businesses established or active in the EU and Horizon 2020 Associated Countries.

Under InnovFin Equity, the EIF targets investments in:

technology transfer funds whose strategy focuses on pre-seed (including proof of concept) and seed stages,Kanpur Investment

funds pooled by business angels or business angel co-investment funds investing into innovative early-stage enterprises and social enterprises, and

venture capital funds that provide funding to enterprises, including social enterprises, in their early stage and operating in Horizon 2020 sectors.

InnovFin Equity is particularly suited to provide support to “first-time” or “emerging” investment teams engaging in their first institutional fundraising round. The EIF will seek to have a catalytic role by acting as an anchor investor in the first closings of the funds.Pune Investment

Newly launched initiatives

As of early 2020, the European Commission (EC) and the EIF have been making available additional resources through initiatives under the EFSI Equity Instrument and InnovFin Equity to further support innovations and novel technologies that would sustain the technological sovereignty of the European economy.

With these initiatives, the EC and the EIF are stepping up their efforts in areas of strategic relevance for the EU, including artificial intelligence, blockchain, or space technologies.

The Artificial Intelligence and Blockchain Technologies initiative is dedicated to financial intermediaries specialising in financing for Distributed Ledger Technology and blockchain. Europe is home to world-leading research communities and a vibrant industry, which are both increasingly relying on artificial intelligence – therefore, it is crucial that we build up an ecosystem that can fuel the development of such technologies on home ground.

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