european investment fund promoting innovative smes in europe ritts valencia /pricova seminar 13...
TRANSCRIPT
European Investment Fund
Promoting innovative SMEs in Europe
RITTS Valencia /Pricova Seminar13 December 2002
2
SUMMARY
Funding innovative SMEs in Europe
• 6th Framework Programme (EC DG Research)
• EIF Venture Capital
3
GRANTS: EU 6th Framework Programme
• EUR 17.5bn 2002-2006• In support of research projects in:
– Biotechnology, genomics– IT– Nanotech– Space aeronautics– Food safety– Sustainable development
• Projects conducted at least between Research Centres of 2 EU countries
• For detailed information see:
http://europa.eu.int/comm/research/conferences/2002/index_en.html
4
VENTURE CAPITAL Through the EIF
5WHEN?
Created in 1994. Mission redefined in 2000: EIF becomes the EU specialised financial
body for SMEs, acting through: Venture Capital (fund of funds) and Guarantees for SME portfolios
WHO ?
Subscribed capital of EUR 2 billion : - 60.75 %: European Investment Bank - 30 %: European Commission- 9.25 %: 28 EU financial institutions
WHY ?
Art 2 : « pursuit of Community objectives » such as growth, employment, knowledge-based economy, innovation, regional developmentArt 24 : « generate an appropriate return on its resources
6
EIF HIGHLIGHTS
Active in the European Union and, since the year 2000, in the EU Candidate Countries.
EIF does not invest in SMEs directly – always works through financial intermediaries.
EIF operations are backed by three sources of funding: own ressources, mandates from the EIB and from the European Community.
EIF own resources to continue to be allocated to early stage tech funds
EIF operations backed by institutional calendar
7
EIF Investment strategy: a commercial approach
Terms and conditions
•12 year investment
•Pari passu investment (like risk like reward)
•10-15 million maximum amount
•50% of total investment
•70% public funding in Objectives 1 & 2 areas
8
ETF Start-up
(EU ressources)
Other Ops(EIB+EIF
ressources)
VC operations
Seed Capital start-up Development Capital ….
Life cycle
Financing innovation:EIF intervenes early in the life cycle
EUR 850 millions in 2001
2003 ?
EUR 4 bn invested en 2001 (EU)
EUR 9 bn invested en 2001 (EU)
Early stage
9
0
500
1000
1500
2000
2500
1997 1998 1999 2000 2001 2002
VC operated by EIB VC operated by EIF
Evolution of VC operations (signatures – cum. – EUR millions )
EIB transfer (921m)In 2000
10
Generalist (Eur 389m)
17%
Tech (Eur 1,385m)
58%
E-migration (Eur 58m)
2%
Mezzanine (Eur 87m)
4%
Tech-Regional (Eur 141m)
6%
Regional (Eur 309m)
13%
Venture capital: sector breakdown as at 30/11/02 (EUR 2.39 bn)
11
Venture capital: geographical breakdown as at 30/11/02 (EUR 2.39 bn)
SWEDEN 3%
SPAIN 8%
PORTUGAL 1%
NETHERLANDS 2%
PANEU & MULTI 16%
LUXEMBOURG <1%
ITALY 11%
IRELAND 4%
GREECE 1%
UK 15%
AUSTRIA 2%
BELGIUM 1%
DENMARK 2%
CANDIDATE COUNTRIES 3%
FINLAND 4%
FRANCE 15%
GERMANY 11%
12
EIF VC OPERATIONS IN SPAIN
• Andalucia Capital Desarollo, F.C.R.
• Baring Iberia Inversión en Capital, F.C.R.
• Bullnet Capital• EBM, F.C.R.• Fondo EURO-ICO, F.C.R.• Fonsinnocat
• GED Iberian Fund• Inversiones en
Telecomunicaciones, F.C.R.
• Milenio L.P. (ex Spark)• Spinnaker Invest• Talde Capital, F.C.R.• TEC Plus III
Total Spain: EUR 188,398,680
13
SUPPORT TO FUNDS LINKED WITH RESEARCH: A PRIORITY FOR THE EIF
1. The experience so far:– Heidelberg Innovation– Symbion (University of Copenhagen)– BioAm (French Public Research Institute)– Parco Scientifico Madrid– …EMBL Heidelberg
2. The use of appropriate resources– “ETF Start-up” for the financing of seed
funds and incubators
14
PROSPECTS 2003/2004
EIF considers (in cooperation with DG Research) how to invest in “Technology Transfer“ (US model, new developments in Europe…)
Aim is to support financially networks of University & Research Centres
Fill the gap between research and commercialisation / market access– Longer maturity– More risk– More public money– But still commercially run investments