1. EIB Venture Debt as Growth Capital

2. Contents What is EIB’s venture-debt? Who is it for?
What are the key terms of EIB’s Growth Capital financing?
Key advantages
What are the key requirements for a successful application?
Who has benefitted so far from it?
How can one apply for it?

3. Brief introduction Venture debt:
Direct financing provided by EIB where the expected return depends on the success of the underlying success of the investment program being financed
Who is it for:
High growth SMEs and MidCaps that have already underwent at least Series B / C equity financing rounds, looking to further accelerate growth

4. What are the key terms of EIB’s venture debt financing?
EIB’s Venture Debt financing is typically provided under the
European Growth Finance Facility (“EGFF”):
Indicative Term Sheet
Borrower up to 3,000 employees
Instruments Quasi-equity debt
Purpose To finance an investment budget
Co-investment EIB finances maximum 50% of eligible project costs, co-investment with third-party sources or own resources
Ticket EUR 7.5m – EUR 50m
Tenor Usually 5 to 7 years after drawdown
Availability Up to 3 years after signature
Pricing Target return commensurate to the risk, may include one or more of the following:
- cash interest
- compound interest (PIK)
- warrants
- profit participation, etc.
Covenants Case-by-case basis
Security Un/Secured
Fees Certain fees applicable
Appraisal Usually between 3 and 5 months

5. EIB Venture Debt comparison
EIB Venture Debt positioning
Venture Capital
EIB Venture Debt
Bank term loan
Typical term
3-5 years
5 years bullet
5 years amortising
Availability period
Immediate disbursement
Gradual availability up to 2-3 years
1-2 years
Typical financing size
EUR 1-15m
EUR m
> EUR m
Cost
€€€€€
Performance based €€ €
Fixed
Return structure
Strong dilution
<10% dilution
None
Key requirements
High growth business plan
High growth, credible business plan,
post series B/C
Stable cash flows, large asset base, security, history of positive net income
* Some of the above figures are generalizations. Final figures are usually subject to due diligence and rating or risk/return approval

6. Key advantages Companies Long term strategic view
Stable and reliable source of capital – we are a triple-A investor
Less frequent rounds - the company can focus on business instead of raising financing
Flexible terms
Customized structure
Founders and investors
Limited dilution
IRR enhancement
Hands-off approach with no direct involvement in daily management

7. What are the key requirements for a successful application?
Stable and experienced management team
Sustainable capital structure
Professional corporate governance and code of conduct
Raised equity in the past (series B,C rounds)
Sustainable business model, business plan and strategy providing credible growth perspectives

8. Application process Approval: Stage I Process Steps Documents
(1-2 months)
Process Steps
Documents
Company to submit investment memo presentation:
Business description, financials
Ownership and 3rd party financing
Corporate governance
Management, employees, etc.
Investor Memo
Non-Disclosure Agreement
KYC checks
Fee letter
Member State Opinion
Due diligence questionnaire
Draft Term Sheet
Final Note
Draft contract
Final contract
CP checks
Disbursement request
Monitoring & reporting
Approval: Stage II
(1-3 months)
Due diligence meeting
Due diligence package
Meeting with management and key people
Consultants / Any other relevant information
Approval: Stage III
(1-2 months)
2nd and final Management Committee approval
Term sheet to be in agreed form
Detailed analysis package prepared
External legal counsel to be appointed
Negot. & Closing
(1-3 months)
Contract closing & CPs
Monitoring

9. Who has benefitted so far from it?
EIB venture debt product launched in 2015 – unique features, no market precedent
First venture debt operation closed in January 2015 with Innocoll AG
In November 2016, EIB moved the venture-debt program under the Junker Plan
More than 2,500 financing requests reviewed since inception
Current portfolio includes 60 signed operations for a total of more than EUR 1bn
Team of 23 people in the front office and dedicated teams of risk, legal, technical and monitoring experts total more than 120 people

10. Quasi-equity operations – page 1
Software
Finland
€ 15 million
11/09/2015
Search engine
France
€ 25 million
23/12/2015
Software
The Netherlands
€ 13.5 million
22/01/2016
Fiber optic networks
England
€ 25 million
17/12/2015
Electronics
France
€ 12 million
11/04/2016
HIV Testing
Sweden
€ 10 million
10/07/2015
3D printers
The Netherlands
€ 10 million
04/07/2016
Biotech
Germany
€ 25 million
27/03/2015
Biotech equipment
Portugal
€ 12 million
27/11/2015
Biotech
Germany
€ 10 million
02/12/2015
Medical Equipment
Finland
€ 8 million
18/03/2016
Food production
Greece
€ 15 million
06/05/2016
Biotech
France
€ 20 million
21/12/2015
Disease diagnostics
Finland
€ 15 million
13/07/2016
Fiber optic networks UK
€ 25 million
08/07/2016
Waste collection
Finland
€ 15 million
11/07/2015
Vaccines
France
€ 25 million
12/07/2016
Flexible displays
Finland
€ 12 million
13/07/2016
Insurance software
Ireland
€ 15 million
22/06/2016
eCommerce software
Finland
€ 8.5 million
22/06/2016
Photovoltaics
Germany
€ 20 million
11/09/2016

11. Quasi-equity operations – page 2
Biotech
Austria
€ 25 million
28/08/2017
Fibreoptics
Spain
€ 10 million
21/10/2016
Software
The Netherlands
€ 7.5 million
09/11/2016
Biotechnology
Ireland
€ 20 million
01/12/2016
Software
Greece
€ 25 million
16/12/2016
Biotechnology
NL/DE
€ 25 million
16/12/2016
Ultra capacitors
Estonia
€ 15 million
10/02/2017
Grid stabilization
Italy
€ 30 million
11/04/2017
Database software
Finland
€ 30 million
12/04/2017
Dermatology
Germany
€ 20 million
19/05/2017
Molecular diagnostic
Spain
€ 20 million
01/06/2017
Software
Sweden
€ 8 million
21/06/2017
Medical Technology
France
€ 20 million
07/07/2017
ICT
Finland
€ 15 million
12/07/2017
ICT
Sweden
€ 30 million
04/08/2017
Medical Technology
Germany
€ 35 million
08/08/2017
Medical Technology
Germany
€ 30 million
10/08/2017
Medical Technology
Austria
€ 25 million
28/08/2017
Biotech
France
€ 30 million
11/09/2017
Biotech
France
€ 20 million
06/10/2017
Photovoltaic glass
France
€ 15 million
05/10/2017

12. Quasi-equity operations – page 3
Data centers
Sweden
€ 10 million
31/10/2017
Scientific education
Portugal
€ 10 million
06/10/2017
Medical Technology
Germany
€ 25 million
08/11/2017
3D printers
Germany
€ 25 million
09/11/2017
Biotech
France
€ 40 million
23/11/2017
Heat engines
Germany
€ 30 million
01/12/2017
ICT
The Netherlands
€ 7.5 million
07/12/2017
Fitness technology
Germany
€ 25 million
14/12/2017
Software
Germany
€ 25 million
14/12/2017
Cyber security
Sweden
€ 20 million
18/12/2017
ID solutions
Sweden
€ 29 million
18/12/2017
Li-ion batteries
France
€ 20 million
18/12/2017
ICT
The Netherlands
€ 10 million
15/12/2017
Medical Technology
Germany
€ 40 million
08/01/2018

13. Summary Large tickets – from EUR 7.5m up to EUR 50m
Longer tenors – 5-year terms with availability of 2-3 years
No dilution – except in cases with small upside
Reliable investor – long-term strategic view
Quality stamp – detailed due diligence
Hands-off approach – no direct involvement in daily management

14. Thank you!