Page 384 - ePaper
P. 384
European Investment Programme:
Pan European venture capital fund(s) of funds, targeting strategic sector priorities
and big-tickets investment decisions
Proposition:
Consolidate or create a pan European investment dynamic in venture capital, particularly
through the setting-up of one or several pan European venture capital fund(s) of funds
likely to target the most critical phases of innovative companies financing, mostly the
industrial ones.
Stakes:
Since 2011 the European Council conclusions regularly recognize the need to boost venture
capital in Europe to address the structural weakness of equity investments in start-ups and
innovative companies. Furthermore, the targeting of certain strategic sector priorities for
the industrial development of Europe, such as biotechnologies, engineering, clean
technologies or digital, is expected to enhance a pan European investment strategy, likely
to give substance to the Europe 2020 strategy. It is therefore necessary to strengthen all
the means needed to achieve this goal.
The resources could be deployed throughout the whole chain of venture capital – seed,
early stage VC, late stage VC.
A specific envelop could target this last segment, essential to boost investment in Europe.
In this context, it is proposed to set up a pan European venture capital fund of funds, whose
purpose would be to invest in several venture capital multi-national funds, large enough
to meet the needs of innovative industrial companies. These pan European funds would
have a size greater or equal to €
500 million and would target certain strategic sector priorities, such as
biotechnologies, engineering, health, clean technologies, digital or creative industries
by investing amounts up to € 10-30 million or more in companies.
This investment strategy could have a great impact in building up competitive European
intermediate-sized companies.
Typology of projects :
- Eligible expenses : growth of technological companies, in particular in the industrialization
phase of their innovations
- Project initiator and partners : EIB group, European investment funds
- Budget : € 5 billion (EIF or other operator managing a dedicated EIB envelop – based on
the Risk Capital mandate model entrusted to the EIF), including a dedicated part for
the late stage VC segment
- Implementation : as soon as possible
Investment amounts targeted: € 15 billion of equity investments in European
innovative companies for 3 years (the EIB/ EIF share representing 1/3 of the whole
amount).
Main issue:
Many SMEs and start-ups involved in innovation and R&D activities, and forming the
backbone of our future industrial strength, cannot find adequate funding (e.g. equity) for
their investments and activities.
There is a growing awareness of the urgency to support risk financing in general for
innovative firms, and SMEs in particular. The European Commission, as well as the EIB
group, including EIF have already taken significant actions whether financial or regulatory,
but this might not be enough to set off European private investment in venture capital.
Pan European venture capital fund(s) of funds, targeting strategic sector priorities
and big-tickets investment decisions
Proposition:
Consolidate or create a pan European investment dynamic in venture capital, particularly
through the setting-up of one or several pan European venture capital fund(s) of funds
likely to target the most critical phases of innovative companies financing, mostly the
industrial ones.
Stakes:
Since 2011 the European Council conclusions regularly recognize the need to boost venture
capital in Europe to address the structural weakness of equity investments in start-ups and
innovative companies. Furthermore, the targeting of certain strategic sector priorities for
the industrial development of Europe, such as biotechnologies, engineering, clean
technologies or digital, is expected to enhance a pan European investment strategy, likely
to give substance to the Europe 2020 strategy. It is therefore necessary to strengthen all
the means needed to achieve this goal.
The resources could be deployed throughout the whole chain of venture capital – seed,
early stage VC, late stage VC.
A specific envelop could target this last segment, essential to boost investment in Europe.
In this context, it is proposed to set up a pan European venture capital fund of funds, whose
purpose would be to invest in several venture capital multi-national funds, large enough
to meet the needs of innovative industrial companies. These pan European funds would
have a size greater or equal to €
500 million and would target certain strategic sector priorities, such as
biotechnologies, engineering, health, clean technologies, digital or creative industries
by investing amounts up to € 10-30 million or more in companies.
This investment strategy could have a great impact in building up competitive European
intermediate-sized companies.
Typology of projects :
- Eligible expenses : growth of technological companies, in particular in the industrialization
phase of their innovations
- Project initiator and partners : EIB group, European investment funds
- Budget : € 5 billion (EIF or other operator managing a dedicated EIB envelop – based on
the Risk Capital mandate model entrusted to the EIF), including a dedicated part for
the late stage VC segment
- Implementation : as soon as possible
Investment amounts targeted: € 15 billion of equity investments in European
innovative companies for 3 years (the EIB/ EIF share representing 1/3 of the whole
amount).
Main issue:
Many SMEs and start-ups involved in innovation and R&D activities, and forming the
backbone of our future industrial strength, cannot find adequate funding (e.g. equity) for
their investments and activities.
There is a growing awareness of the urgency to support risk financing in general for
innovative firms, and SMEs in particular. The European Commission, as well as the EIB
group, including EIF have already taken significant actions whether financial or regulatory,
but this might not be enough to set off European private investment in venture capital.
