Investment & Fund Management

The European Investment Fund (EIF) partnered with Inveready Venture Finance to address the financing challenges faced by innovative small and medium-sized enterprises (SMEs) and small mid-caps in Spain. These companies often struggle to secure traditional bank loans due to their early-stage development and the inherent risks associated with their business models. The EIF's solution involved a guarantee agreement that enabled Inveready to provide EUR 6.6 million in loans over two years, specifically targeting technology-driven SMEs that are engaged in intensive research and development (R&D).

This initiative was part of the European Fund for Strategic Investments (EFSI) and utilized the "EU InnovFin finance for Innovators" initiative, backed by the European Commission's Horizon 2020 programme. The tailored financing solution allowed Inveready to offer loans at favorable conditions, thereby enhancing the financial support available to innovative companies in Spain. The EIF's involvement was crucial in mitigating the risks associated with lending to these early-stage firms, which are typically not creditworthy enough to access substantial bank financing.

As a result of this collaboration, Inveready Venture Finance was able to expand its reach within the entrepreneurial ecosystem in Spain, providing essential funding to companies focused on R&D and market expansion. This agreement marked the first InnovFin transaction in Spain supported by EFSI, demonstrating a significant step in facilitating access to finance for innovative SMEs and contributing to job creation and economic growth in the region.