The European Investment Fund (EIF) and Inveready Asset Management SGEIC have incorporated the Inveready Convertible Finance I FCR fund into the InnovFin program to increase the access to financing for innovative companies listed on alternative markets in Continental Europe. This transaction benefits from the support of the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe.
The new guarantee agreement will allow Inveready Convertible Finance to grant €20 million in convertible bonds to European small businesses in the next 2 years. The Spanish fund will focus on companies listed in alternative markets such as the Spanish MAB, Euronext Growth, AIM Italia, amongst other alternative markets in Europe. The financial instrument covers a market gap between equity investors and bank financing. Inveready Convertible Finance targets small-cap companies which are not credit-worthy enough to have access to sufficient bank financing to finance their ambitious expansion plans.
EIF’s guarantee is provided under the “EU InnovFin finance for Innovators” initiative with the financial backing under Horizon 2020, the EU Framework Programme for Research and Innovation. The agreement would not have been possible so soon without the backing of the Investment Plan.
Carlos Conti, General Partner of Inveready Convertible Finance, stated that: “We are delighted to continue to count with the support of EIF. The InnovFin program enabled us to finance truly innovative companies with Inveready Venture Finance I and Inveready Venture Finance II using a type of financing instrument that was not present in Spain: Venture Debt. The positive experience led us to launch our first convertible bond fund, thus offering again a new financing alternative to small caps companies that would not have been possible without the support of the FEI".
This transaction with Inveready Convertible Finance reflects the EU's commitment to rapidly launch concrete initiatives under EFSI, accelerating lending and guarantee transactions capable of boosting jobs and growth in the EU.
About EIF
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. More information on EIF's work under EFSI is available here.
About Inveready Technology Investment Group
Inveready Convertible Finance is a closed-end fund operating in Europe, focused on growth companies listed on alternative markets. The financing will be directed to funding expansion plans to create new products and joining into new markets. It targets small caps companies which are those that are not credit worthy enough to have access to substantial bank financing. Inveready Convertible Finance is managed by Inveready Technology Investment Group, a leading technology investment fund management firm in Spain. It counts more than 80 portfolio companies and has backed success stories such as Password Bank, integrated in Symantec, Indysis, integrated in Intel, Lucierna, integrated in US peer Smart Bear, iSalud integrated in CNP, Palo Biofarma with a landmark deal with industry leader Novartis andhaving supported the largest Spanish unicorn, the 4th Spanish telecommunications operator, MásMóvil, whose valuation reaches more than €2.000 million euros in market cap.
About the Investment Plan for Europe
The Investment Plan focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, providing visibility and technical assistance to investment project. The Investment Plan is showing real results. The European Investment Bank (EIB) estimates that as of January 2018, the European Fund for Strategic Investments (EFSI) triggered more than EUR 256 billion of investment in Europe.
Building on this success, the European Commission on 14 September 2016 proposed extending EFSI by increasing its firepower and duration as well as reinforcing its strengths and in December 2017, the European Parliament and Member States reached an agreement. Find the latest EFSI figures including a break-down by sector and by country here. For more information see the FAQs.
About InnovFin
The InnovFin SME Guarantee Facilityprovides guarantees and counter-guarantees on debt financing of between EUR 25,000 and EUR 7.5 million in order to improve access to loan finance for innovative small and medium-sized enterprises and small mid-caps (up to 499 employees). The facility is managed by EIF, and is rolled out through financial intermediaries – banks and other financial institutions – in EU Member States and Associated Countries. Under this facility, financial intermediaries are guaranteed by EIF against a proportion of their losses incurred on the debt financing covered under the facility.
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