EIB Group unveils €200M equity funding to support Greek startups and SMEs: Know more

The European Investment Bank (EIB) announced on Tuesday, May 14, that it is working with the Hellenic Republic to support startups and SMEs in life sciences, healthcare, and sustainability. 

The European Investment Fund (EIF), part of the EIB Group, will manage €200M from European structural funds and national resources with a new equity mandate.  

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 by helping them to access finance. 

The EIF designs and develops venture and growth capital, guarantees, and microfinance instruments that specifically target this market segment.

Better access to vital equity financing

Greek startups and SMEs in the life sciences, healthcare, and sustainability sectors will gain better access to investment finance under this new equity agreement managed by the EIF, a part of the European Investment Bank (EIB) Group. 

Under this agreement, the EIF will manage €200M of EU Cohesion Policy Funds and national resources to provide equity financing for risk finance investments in the country.

The equity mandate, signed today in Athens by EIB Vice-President Ioannis Tsakiris, Alternate Finance Minister Nikos Papathanasis, and EIF Chief Executive Marjut Falkstedt, aims to help companies focusing on innovation in the targeted sectors to have better access to vital equity financing. 

This will help them become more competitive and fully exploit their growth potential.

“The EIB Group has vast experience in deploying cohesion funding to mobilise private resources and accelerate investments for the real economy,” says Tsakiris. 

“Financial instruments are key in this respect; they leverage private capital to support the most dynamic, promising enterprises of Europe, while their revolving nature makes the best possible use of scarce public resources. The EIB Group has been supporting the Greek venture capital and private equity ecosystem since its nascent steps back in 2009; we are proud to have instrumentally contributed to its buildup and development. Successor initiatives like Equifund II, targeting risk equity financing in promising sectors of the Greek economy such as Life Sciences, will continue to play an important role in promoting cohesion, developing the growth of innovative companies in Greece, and boosting competitiveness across the EU,” adds Tsakiris. 

EquiFund II: Bridging financing gap and target investments

The equity mandate aims to support fund management teams in the life sciences, healthcare, and sustainability sectors. It will cover a financing gap and target investments in all asset classes, from pre-seed to growth investments. 

EquiFund II is the successor of the EquiFund equity mandate signed in 2016 and financed by European structural and investment funds (ESIF) resources. 

It provided equity financing for innovative companies and businesses across all investment stages and sectors of the economy. 

Falkstedt says, “We are delighted to be announcing the launch of EquiFund II, which represents a continuation of our successful partnership with the Greek government to foster the growing startup ecosystem in Greece.” 

“This new initiative reflects our common goal of unperturbed support for ambitious entrepreneurs with strong growth potential, at the same time driving innovation, competitiveness, social sustainability, and jobs, this time with a specific focus on the Life Sciences and Social Sustainability sectors. These areas are among the most dynamic of the Greek economy and our continued support aims to further accelerate their development,” adds Falkstedt.

EquiFund is recognised at the European Union level as a successful example of ESIF-supported equity financing, supporting SMEs in developing technologies that compete globally.

Papathanasis says, “The expansion of the financing perimeter and the wider support of entrepreneurship, especially small and medium-sized and startups, especially when they are active in innovation and sustainability, are a priority of the government’s economic policy, to cover the investment gap caused by the crisis, extroversion trends, and the long-term change of the country’s production model,” 

“In this direction, a lot has happened in recent years, but we are not complacent. The challenges of the new era are continuous and cooperation with European organizations such as the EIB Group reinforces our choice not to waste a single euro of the available resources, for an even more competitive economy, for a more cohesive society, with more and better-paid jobs for all our fellow citizens”, adds Papathanasis.