InnovFin – EU Finance for innovators (initiative launched by the European Investment Bank Group (EIB and EIF))
Summary
Budget
Official information source
https://www.eib.org/en/products/mandates-partnerships/legacy/index.htmDescription
Legacy mandates
The European Investment Bank and the European Commission have been working together for decades to develop innovative funding solutions. From traditional areas such as infrastructure, to emerging topics like research and innovation or projects to tackle climate change - our successful mandates and partnerships across Europe provide a solid foundation of finance opportunities. To discover more about some of these past initiatives, please see the list below.
CONNECTING EUROPE FACILITY DEBT INSTRUMENT (CEF DI)
The Connecting Europe Facility (CEF) was a programme from the European Union to support the development of high performing, sustainable and efficiently interconnected trans-European networks in the fields of transport, energy and digital services.
The EIB managed the Debt Instrument under CEF, a risk-sharing facility building on the successful pilot phase of the Project Bond Initiative as well as of the Loan Guarantee Instrument for TEN-T Projects.
CEF DI - Final beneficiaries for 2023
EUROPEAN FUND FOR STRATEGIC INVESTMENT (EFSI)
The financial arm of the Investment Plan for Europe, the European Fund for Strategic Investments (EFSI), tackled three pressing issues – economic, environmental and non-financial barriers to investment, capacity constraints and subdued investment activity. The plan was designed by the European Commission and the European Investment Bank in 2014 and launched for a five-year period in the summer of 2015.
EFSI over-delivered on its target to support €500 billion in investment, notably by mobilising capital from private sources. It also helped mitigate the impact of COVID-19 on Europe’s economy.
Find out more about the impact and governance of EFSI
INNOVFIN – EU FINANCE FOR INNOVATORS
InnovFin – EU Finance for Innovators was an initiative launched by the EIB Group in cooperation with the European Commission under Horizon 2020, the EU Research and Innovation programme for the budgetary period 2014-2020.
InnovFin supported projects, which by their nature are riskier and harder to assess than traditional investments, and therefore often face difficulties accessing finance. The EU and the EIB Group joined forces to provide finance to support research and innovation of small and early-stage enterprises – from small tech start-ups to large research facilities and circular economy companies.
InnovFin - Final beneficiaries for 2024
NATURAL CAPITAL FINANCING FACILITY (NCFF)
The Natural Capital Financing Facility (NCFF) offered funding and technical assistance to projects that promote the conservation, restoration, management and enhancement of natural capital for biodiversity and adaptation benefits, including ecosystem-based solutions to challenges related to land, soil, forestry, agriculture, water and waste inside the European Union.
NCFF combined funding from the EIB and the LIFE Programme, the EU’s funding instrument for the environment and climate action.
NCFF - Financed projects as of June 2023
NCFF - Technical operations as of June 2023
Investing in nature: financing conservation and nature-based solutions
PRIVATE FINANCE FOR ENERGY EFFICIENCY (PF4EE)
Private Finance for Energy Efficiency (PF4EE) addressed the limited access to adequate and affordable commercial financing for energy efficiency investments.
The instrument targeted projects that support the implementation of National Energy Efficiency Action Plans or other energy efficiency programmes of EU Member States.
PF4EE, managed by the EIB and funded by the LIFE Programme, provided:
- a portfolio-based credit risk protection provided by means of cash-collateral (Risk Sharing Facility),
- long-term financing from the EIB (EIB Loan for Energy Efficiency), and
- expert support services for the Financial Intermediaries (Expert Support Facility).
PF4EE - Final recipients for 2023
PF4EE - Financial intermediaries and final recipients for 2023
The EIB Group also partnered with 22 Member States to launch the European Guarantee Fund. The fund was designed to help businesses recover from the economic shock of COVID-19. The programme focused on small and medium-sized companies, receiving more than 65% of the mobilised investment.
INNOVFIN – EU FINANCE FOR INNOVATORS
Whether you are a small and medium sized enterprise (SME), a large company or a research institution, InnovFin can provide the right financing instrument for your research and innovation project.
"InnovFin – EU Finance for Innovators" is an initiative launched by the European Investment Bank Group (EIB and EIF) in cooperation with the European Commission under Horizon 2020, the EU Research and Innovation programme for the budgetary period 2014-2020.
Since 2014, InnovFin aims to facilitate and accelerate access to finance for innovative businesses and entities in Europe. InnovFin supports projects, which by their nature are riskier and harder to assess than traditional investments, and therefore often face difficulties accessing finance. In order to overcome these difficulties, the EU and the EIB Group joined forces to provide finance to support research and innovation of small and early-stage enterprises – from small tech start-ups to large research facilities and circular economy companies. The financing also complemented the European Fund for Strategic Investments. Find out who we supported in 2021.
InnovFin builds on the success of the former Risk-Sharing Finance Facility implemented under the EU’s Research and Innovation programme for the budgetary period 2007-2013. Watch the video.
By the numbers
45 COUNTRIES
€ 31 bn TOTAL FINANCING SIGNED SINCE 2014
149 INNOVATIVE PROJECTS AND COMPANIES
30,000 SMALL AND EARLY-STAGE ENTERPRISES
What types of financing products are available
InnovFin provides loans, guarantees and equity-type funding, tailored to innovators’ needs. Financing is either provided directly or via a financial intermediary, usually a bank or a fund. InnovFin is available across all eligible sectors in EU Member States and Associated Countries
Financing under most products was available until 31 December 2020.
As of 1 January 2021, EIB can approve new operations only under InnovFin Thematic Financing, targeting key policy sectors facing particularly significant financing gaps. Financing is available for small companies, large caps and special purpose vehicles under the following products until 31 December 2022:
Project finance and/or direct corporate lending (including equity-type): Read more
Project finance and/or direct corporate financing (including equity-type): Read more
Intermediated financing (including equity-type) through investment platforms focused on specific thematic areas: Read more
In addition to Thematic Financing, InnovFin Advisory, providing guidance to promoters on how to structure their R&I projects in order to improve their access to finance, is also still available.
InnovFin Legacy Products
The following products are no longer available for new operations under InnovFin.
InnovFin Large Projects, InnovFin Midcap Growth Finance, InnovFin MidCap Guarantee, InnovFin Emerging Innovators, InnovFin Science, InnovFin Corporate Research Equity, InnovFin SME Guarantee, InnovFin Equity
© Caiaimage/Martin Barraud/Getty Images
Get in touch
Contact our Information Desk for enquiries regarding the financing facilities of InnovFin.
What financing products are available?
InnovFin financing tools cover a wide range of loans, guarantees and equity-type funding, which can be tailored to innovators’ needs. Financing is either provided directly or via a financial intermediary, most usually a bank or a fund.
InnovFin is available across all eligible sectors in EU Member States and Associated Countries, under the EU Research and Innovation programme Horizon 2020.
To read more about which InnovFin products are available and who can benefit from them, please click here.
What are the objectives of InnovFin?
"InnovFin – EU Finance for Innovators" is a joint initiative launched by the European Investment Bank Group (EIB and EIF) in cooperation with the European Commission under Horizon 2020.
InnovFin aims to facilitate and accelerate access to finance for innovative businesses and other innovative entities in Europe.
One of the key factors constraining the implementation of R&I activities is the lack of available financing at acceptable terms to innovative businesses since these types of companies or projects deal with complex products and technologies, unproven markets and intangible assets.
In order to overcome these difficulties, the EU and the EIB Group have joined forces to provide finance for research and innovation to entities that may otherwise struggle to access financing.
Why are the EU and EIB Group supporting innovative companies?
The EU lags behind its global competitors in terms of both private and public investment in research and innovation.
However, innovation is a key ingredient for driving sustainable growth, creating jobs and ensuring Europe’s long-term competitiveness. That is why the EIB Group and the European Commission have made it a top priority to facilitate access to finance for innovative businesses in Europe.
What is new about InnovFin?
InnovFin builds on the success of the former Risk-Sharing Finance Facility developed in the early 2000’s under the EU framework programme for research and technological development (FP7).
Under the 2014-2020 programming period, the European Union and EIB Group have more than doubled their combined support for innovative firms in Europe. In addition to more financing being made available, InnovFin also offers a greater product range.
InnovFin has been developed in such a way to provide a series of integrated and complementary financing tools.
The InnovFin products are subject to regular updates to reflect market evolution. Since its launch in 2014, a dozen products have been tailored and made available to accommodate niche markets previously suffering from access to finance gaps and to reinforce the complementarity with the European Fund for Strategic Investments (EFSI).
