1. Funding opportunities for SMEs Under the investment plan for Europe
Vienna 29 January 2016

2. EIF in a nutshell “
We are a value-driven institution with over 360 staff, committed to EU policy objectives and financial sustainability ”
Shareholders
61.3% European Investment Bank (EIB), 26.5% European Commission (EC),
12.2% by 29 public and private financial institutions (FIs)
Strong capital base of EUR 4.5bn
AAA-rated
by the three major rating agencies
Over 20 years
of market experience in SME financing

3. “ ” EIF’s impact We are the prime provider of SME financing in Europe
Overall commitments
EUR 7bn (2015)
EUR 2.2bn equity
EUR 4.7bn guarantees and securitisation
EUR 86m microfinance
Mobilised resources
EUR 26.9bn (2015)
EUR 9.8bn equity
EUR 16.6bn guarantees and securitisation
EUR 421m microfinance
SMEs supported
over 1.8 million since
110,000 in 2015
Partners
600 private equity funds
400 banks, guarantee and promotional institutions
(*) Unaudited

4. EIF’s Business Model Our success
micro-enterprises,
SMEs and small mid-caps
Resources and Mandators
EIB
EIF own resources
European Commission
MS / Regions
Corporates/private
Public institutions
Other third parties
Intermediaries and counterparts
Fund Managers
Commercial Banks
Development & Promotional Banks
Guarantee Institutions
Leasing Companies
Corporates
Business Angels
Microfinance Institutions

5. Our Resources European Investment Bank European Commission
Risk Capital Resources (RCR)
EIB Group Risk Enhancement Mandate (EREM)
Progress Microfinance
EUR 12.1bn
European Commission
COSME/InnovFin allocated to equity and guarantees
Risk-Sharing Instrument (RSI)/InnovFin
EaSI/Progress Microfinance
SME initiative
WB EDIF
EFSI
EUR 5.8bn
National & Regional Funds
21 funds-of-funds including in the Balkans, Germany, Poland, Portugal, Spain, Turkey, UK
15 Holding Funds supported by struct. Funds
EUR 5.2bn

6. Helping businesses at every stage of their development
SME Development Stages
DEVELOPMENT
HIGHER RISK
LOWER RISK
Business Angels, Technology Transfer
Microcredit
VC Seed & Early Stage
Portfolio Guarantees & Credit Enhancement
VC Funds, Lower Mid-Market & Mezzanine Funds
PRE-SEED PHASE
SEED PHASE
START-UP PHASE
EMERGING GROWTH
Social Impact Funds
EFSI to provide additional firepower

7. EFSI SME Window

8. SME Window of EFSI
Support to SMEs and mid-caps in foreseen in the EFSI Regulation
A specific SME Window of EFSI has been created under the EIB-EU EFSI Agreement, signed 22 July 2015.
The SME Window targets mainly SMEs, but also provides support to small mid-caps (up to 499 staff).
The SME Window should support primarily businesses in EU Member States.
The SME Window is implemented via the European Investment Fund (EIF), through agreements between the EIF and financial intermediaries signed in /9.

9. SME Window of EFSI
Financial support comes on top of what would have been delivered under the existing and already foreseen programmes in the period
The SME Window has a budget of EUR 5 billion (2.5 billion covered by EU guarantee under EFSI, 2.5 bn at EIB risk to increase the RCR mandate).
Offers a mix of facilities:
covering both debt and equity financing;
providing finance to SMEs and small mid-caps in early, as well as expansion and growth stages of their life-cycle;
financing of investment projects as well as working capital ;
catering specifically for the needs of higher-risk, innovative or research-intensive companies, start-ups and high-growth SMEs, social enterprises or SMEs that want to expand internationally.

10. Where do we stand, what is coming?
3 actions in place since July 2015:
guarantees supporting loans to SMEs with a higher-risk profile (enhancement of COSME loan guarantees);
guarantees supporting loans to innovative and research-intensive companies of up to 499 staff (enhancement of InnovFin loan guarantees);
EUR 2.5bn boost to "Risk Capital Resources", a facility investing in venture capital and equity funds.
Further products to be launched in to support
equity financing, including technology transfer and social investment;
securitisation of SME loan portfolios;
guarantee on lending to innovative companies that lack collateral;
products in support of micro- and social entrepreneurship.

11. SME Window: Actions in place and signed operations to date
(EIF signatures)
Number of transactions
Total investment (est.)
EIF financing
commitment (EFSI)
EIF risk capital 45
€ 14.6 bn
€ 1.4 bn
EIF guarantees for SMEs portfolios 39
€ 10.5 bn
€ 0.4 bn
TOTAL 84
€ 25.1 bn
€ 1.8 bn
Some 81,200 SMEs and Midcaps are expected to benefit from such enhanced access to finance.
(*) Figures December 2015

12. SMEW Equity Product: Status and Objectives
Currently under negotiation between EC and EIF.
Foreseen to be launched in Q
Objectives
Address market gaps:
Ensure equity investment for early stages;
Support expansion and internationalisation of growth-stage companies.
Focus on EU added value: support the emergence of a pan-European VC market, support the expansion of the VC industry in Member States with less developed VC markets, support sectors of recognised EU importance.
Crowd in private investment.
Create an instrument with critical mass that could significantly boost the VC investment volumes in the EU.

13. SMEW Equity Product: Investment volume (*)
EUR 2 billion with the following stage focus distribution:
½ primarily dedicated to early-stage investments;
½ primarily dedicated to expansion-stage investments.
Specific earmarking foreseen for:
Social investments;
Business angels;
Technology transfer;
Funds of funds.
EIF will seek contributions from National Promotional Institutions willing to co-invest alongside the SMEW Equity Product.
(*) Based on current status of the negotiation and not yet finalised.

14. SMEW Equity Product: Instruments
Direct Investment in funds
Typically as a cornerstone investor in the first closing.
Typically in funds with a multi-country focus, or contributing to the development of national VC market, or demonstrating strong EU added value.
Co-investment vehicles at SME level
Offered to existing funds in their investment or follow-on periods, as well as those in fund-raising, to enhance their capacity to serve their portfolio companies.
Investment in Funds of Funds
Typically in multi-country FoF structures.
Requirement of ability to attract significant private investment.
Possibly to include investment in pan-European VC FoF.

15. EIF-NPI Equity Platform
The Platform will be the key forum for cooperation with NPIs under EFSI and potentially the model going forward in other areas (securitisations , guarantees)
Collaborative forum created in the context of EFSI, but with lifespan and scope going beyond EFSI's framework.
A forum bringing together EC, EIF, NPIs and potentially IFIs investing in equity to discuss:
possible cooperation and investment activities;
strategy and policy orientations;
investment policy and market gap assessment;
common agreed investment, due diligence, execution, legal, impact assessment, standards and methodologies;
matters of common interest, including sharing of experiences, training, regulatory obstacles and ways to remove the.

16. Growth and/or Multi-Stage
Stage Focus
Growth Stage Focus
Early Stage Focus
COSME Equity type
EUR 450m
EUR 550m
IFE type
EUR [800-1,200m]
Growth Stage
Growth and/or Multi-Stage
Growth Stage
Early Stage
Early
Stage

17. Access to funding EFSI SMEW Equity Product
The Forum
EU28 NPIs, on request
2-year term
Meet annually
Elects members of Consultative Forum
EIF acts as Secretary
EFSI SMEW EQUITY (MANDATE) FUNDING
Selection Process:
Call published by EIF
Due Diligence by EIF Equity Investments (and/or in collaboration with NPI(s))
Independent Risk and Compliance Opinion by EIF
Investment decision by EIF Board
Applicants
(Multi-)National VC funds
Co-investment vehicle
Fund-of-Funds
With/without pre-committed participation of NPI(s)
Mandate & Access to funding
Other sources of funding, incl. co-investments
EIF/EIB
Potentially additional funds from other EIF mandates
Private/Market investors
NPI(s)
1:1 matching with Platform
Platform
Final recipient
Final recipients:
Project / SME / small midcaps
Technology Transfer
Business Angel
Social Enterprises
Internationalisation strategies
Other, e.g. Buy-and-build, Key Enabling Technologies)
EIF
Mandate Manager
EIF-NPI Equity Platform
Visibility
INV. PLATFORM 1
e.g. Social Impact
INV. PLATFORM 2
e.g. TT
INV. PLATFORM
Regional Co-Invest fund / FoF

18. Contacts European Investment Fund 37B, avenue J.F. Kennedy
Hubert Cottogni
Deputy Director Head of Mandate Management
Phone: (+352)
European Investment Fund
37B, avenue J.F. Kennedy
L-2968 Luxembourg
The JEREMIE initiative helps EU Member States fund local SMEs in precisely targeted ways – it:
Lets Managing Authorities use part of their structural funds to support SMEs
Provides a toolbox of financial products, including equity, guarantees and microfinance for start-ups, companies in the early and their expansion stages
Offers a balanced mix of products to address specific market needs