The two financing lines of the Institut Valencià de Finances (IVF), funded through the Comunitat Valenciana ERDF Programme 2021–2027—the Participatory Loans line and the Subordinated Loans line—have achieved a highly positive performance in their first two years of operation. Since their launch in the first quarter of 2024, the IVF has approved 75 transactions for a total amount of nearly €20 million.
Considering that the combined budget allocated to these two financing instruments was €30 million at inception, this means that more than 66% of the total allocation has already been deployed in just two years, equivalent to almost two-thirds of the overall budget.
The Director General of the IVF, Enrique Montes, has positively assessed these figures, highlighting that they “confirm the excellent reception these instruments are receiving among startups and innovative companies within the Valencian business ecosystem, and the growing demand we are seeing shows that companies find these lines an effective tool to finance technological projects with ambition and growth potential.”
“We are offering useful, well-designed products tailored to the real needs of the Valencian innovation ecosystem, and the level of activity achieved in just two years is clear evidence that these tools are fulfilling their purpose: injecting strategic financing where it can generate the greatest impact, strengthening our companies’ capacity to develop future-oriented projects,” Montes added.
Among the activities financed through these operations are projects linked to renewable energy, the circular economy, carbon footprint measurement, and environmental traceability, as well as biotechnology and advanced medical diagnostics projects, reinforcing the growing importance of innovation in healthcare.
This also includes advanced manufacturing projects (such as 3D printing, new materials, and electric batteries), technological solutions applied to the agri-food sector, sustainable mobility initiatives, new proptech platforms, and digital leisure and content creation projects. Finally, the funded projects also reflect emerging consumption trends, including developments in sustainable fashion, natural cosmetics, innovative hospitality, and digital services aimed at improving everyday life for households and businesses.
Specifically, the Participatory Loans line in co-investment with private investors under the ERDF programme is aimed at financially supporting microenterprises and small enterprises in their early stages, with a focus on those with a strong innovative profile.
These loans range from €50,000 to €300,000, with maturities of up to seven years and a three-year grace period, and an interest rate ranging between 3% and 9% depending on the characteristics and potential of the project.
During its first two years, the IVF has approved 60 participatory loans in co-investment, totalling more than €9 million.
Meanwhile, through the ERDF Subordinated Loans line, the IVF provides financial support to projects in growth and consolidation phases.
This instrument offers loans ranging from €300,000 to €1 million, with maturities of up to ten years and a three-year grace period, intended both for the development of new investment projects and for addressing companies’ working capital needs.
The interest rate is set at Euribor + 6.50%, with a subsidy of between two and six percentage points, significantly reducing the effective cost for companies and improving their capacity to undertake growth and consolidation processes.
Two years after its launch, the IVF has already granted 15 subordinated loans for a total amount exceeding €10 million
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