1. InnovFin SMEG in Bpifrance’s offer : “The Financing Continuum of Innovation”
Sylvie Cogneau Bpifrance
On-site mentoring mission / Access4SMEs in Bulgaria
Sofia, October 16, 2018

2. Bpifrance : General information
Established by the law of December 31, 2012, Bpifrance is equally held by the French state and Caisse des Dépôts
Its activities are organized around three business lines :
50%
50%
90,6%
Bpifrance Financement
Bpifrance Investissement
Bpifrance Assurance Export *
9,4%
Simplified chart
Other
(mainly private commercial banks)
Bpifrance Assurance Export* : Credit Insurance, Foreign Investment Insurance, Market Survey Insurance, Exchange Risk Insurance, Bonds and working capital guarantee were integrated to Bpifrance on January 1st, 2017

3. A partnership throughout the whole lifecycle of our clients
Bpifrance provides the tools and support necessary to companies’ internationalization
A partnership throughout the whole lifecycle of our clients
EXPORT
Bpifrance guarantees banks to enhance financing of SMEs at their riskiest life stages
PRIVATE
EQUITY
GUARANTEE
Bpifrance invests as a minority investor either directly in growing companies, or indirectly in private equity funds, themselves investing in SMEs
Bpifrance backs innovative projects by financing R&D and industrial / commercial launch, or through equity investments
FINANCING
INNOVATION
Bpifrance provides a wide range of loans to support the development of companies of all sizes

4. An organization designed to bring us closer to the entrepreneurs48
90%
regional offices
of decisions taken in the regional offices 1
contact for companies
In every region:
A guarantee finance officer
A dedicated Export Financing Expert
One or more Business France officers
An innovation officer
An equity investment officer
Bpifrance works in collaboration with regional authorities, to develop financial solutions adapted to territorial specificities

5. INNOVATION
Bpifrance supports innovative projects, whether individual or collaborative, by financing R&D and the go-to-market plan, or even by acquiring a stake in capital:
Support to innovation: grants, repayable advances, interest-free loans
Innovation loans to launch innovative products and services on the market
Seed-capital loans to prepare for fund-raising
Equity investments, either directly or through our partner funds

6. French entrepreneurs require fertile ground and a variety of tools to be able to grow
Métaphore de l’Arbre en introduction des propos de PFF.

7. Connecting the ecosystems and catalysing public policy in favour of innovation

8. We support your innovation projects so that they are more likely to be successful
ACHIEVE
YOUR
STRATEGY
We finance the completion of your project:
For individual
Aid for innovation development
For partnerships
Aid for collaborative projects
For international
Innovation development in international collaboration
We support you so as to
Confirm the feasibility of your innovative project
Prepare the arrangement
and partnership of your
collaborative project
We help you start an innovative company:
Pre-creation support
We accelerate the
industrial and
commercial launch:
Loans for innovation
and help you obtain
a bank loan
Guarantee for bank loans
IMPLEMENT
YOUR
PROJECTS
BOLSTER
YOUR EQUITY
EXPLORE
THE
FEASIBILITY
We facilitate the Participation
of capital investors:
Seed loans
Equity stakes via direct funds and partners
Qualification of “innovative company”
for access to FCPI
TRANSFORM
YOUR IDEA
The financial support offered by our teams : Grants, repayable advances, zero-interest loans, reduced-rate loans, acquisition of an equity stake and guarantee for a bank loan, depending on your project’s risk and progress (distance to market).

9. Bpifrance shares the risk
Bpifrance guarantee
Bpifrance shares the risk
The financing of very small to medium-size companies presents a high risk when:
the company is being created or transmitted,
investments in risky phases such as international expansion or innovation :
Bpifrance provides directly companies with grants and loans for innovation
and is also able to guarantee 40-70% of the risk taken by banks and investors

10. Innovation Financing products depending on the project’s progress
Reimbursable Advance
Seed Investment
Loan
Growth Loan
Grant
Risk level
Sales
Investments
Formulation
Feasibility
Development
Pre-launching
Launching & growth
time
Innovation loan
Seed Loan

11. EIB Group offer : Division of roles
EIF
EIB
SMEs–Mid caps
Large entreprises
Equity / Guarantees via financial intermediaries
Equity / Guarantees via financial intermediaries ü ü
Direct loans ü
Tickets 25K – 7,5 M €
Tickets
7,5 M – 500 M €
At all stages of development
JUNCKER PLAN
Funds strategic investments
Reinforcing EIB group
500 Billion € of investments in 2020

12. Transfer of technology
1. Equity of EIB Group
Transfer of technology
funds and
seed funds
Business
Angels
Venture capital
funds
Capital
devlopment
funds
Debt funds
& mezzanine
EIF
EIB
Portfolio EIB and EIF: +70 French funds from seed to growth

13. 50% max per guarantee loan
2. Main guarantees of EIB Group
Enterprises Profile
Modalities
Gestionnaire
COSME
Loan Guarantee Facility
Enterprises at the growth stage / competitivness
Free guarantee
Amount of the loan: max 150 K € per max 12 months
EIF
INNOVFIN
InnoFin SME Guarantee
Innovative SMEs (Criteria list)
Guarantee subsidized fees
Amount : from 25K to 7,5 m € per 1 to 10 years
InnoFin Mid cap Guarantee
Innovative mid caps
Guarantee fees under market conditions
Amount : higher than 7,5 m€
EIB
CREATIVE EUROPE
Creative Cultural Sector Guarantee Facility
Creative industries enterprises and cultural enterprises
Loan amounts limited to 150 K € per max 12 months
Guarantee up to 70%
50% max per guarantee loan

14. 3. Direct loans of EIB Enterprises operating in the EU which have :
Solid Business model / Defined strategy
Solid Capitalistic structure
Target
Financial needs linked to the growth of the business, Innovation and energetic efficiency, industrial projects, circular economy
Objective
Amount – 7,5 to 500 m €
Duration – Generaly 5 to 7 years (Longer on a case-by-case basis)
Modalities

15. Funds of EIB Group in Bfpifrance’s offer (1/2)
Innovation
Financement
Seed Investment
Loan EIF
Reinforcing the cash of the company during a fundraising
EIF Innovation Loan
Financing the immaterial expenses of the industrial & commercial launch of an innovation
Creative Industries Loan
Financing the immaterial expenses of companies in creative & cultural sectors
Supported by InnovFin guarantee programme / Horizon 2020
PAI (Seed Investment Loan): 50% guaranteed by the EIF+ 30% Bpifrance
PI (Innovation Loan) : Guaranteed to 50% by EIF + 30% Bpifrance
Supported by the Creative Europe programme
Guaranteed to 70% by EIF

16. Funds of EIB Group in Bpifrance’s offer (2/2)
Equity
Industrial Projects Societies (IPS) Fund
Support, alongside mainly industrial partners, the projects transition to their industrialization phase
Bpifrance takes minority stakes alongside other investors such as the EIF in capital investment funds
Agreement of co-investment EIB / Bpifrance
100 m€ in delegated management to Bpifrance
Investments pari passu with IPS
+60 VC funds and development capital co-invested by Bpifrance and EIF
Minority investments pari passu

17. Bpifrance’s InnovFin Agreements
In 2013 a previous RSI Agreement
1st Agreement signed with EIF under the Juncker plan in May 2015
A portfolio of EUR 420m of loans to innovative SMEs and Small Midcaps guaranteed by EIF
Guarantee covering two recent products:
The Innovation Loan (EUR 320m)
The Seed Investment Loan (EUR 100m)
2nd Agreement in October 2016
3rd Agreement in October 2017 to increase the lending capacity of the 1st InnovFin contract
Covering the 2 same loan products to innovative entreprises :
The Innovation Loan : 1040m€ guaranteed to 50 % by EIF for the launching of the innovation on the market. For enterprises + 3 years old and less 500 employees, loan of 5 m€ max.
The Seed Investment Loan : 400 m€ guaranteed to 40% and now 50% by EIF for the reinforcement of young enterprises while successful raising money, loan of 500 k€ and now 1m max.

18. What are the advantages of using the InnovFin guarantee scheme?
For the bank
It encourages the financing of innovation phases. The intermediary then finds himself well "placed" in the banking competition to enter those customers who create value for the future.
The risk is shared with the instrument. It’s lowering the risk exposure in the balance sheet of the FI. It’s improving the return on investment of the Equity ratio = with the same level of capital, banks can lend twice as much, because they make credit involving half of their own funds in case of disaster

19. What are the advantages of using the InnovFin guarantee scheme?
For the SME
The interest rate of the loan is reduced thanks to the financial benefit retroceded to the SME
Less collateral requirements (max 30% for the FI)
The scheme encourages the financing of risky steps in the development of innovation: it turns high risk into acceptable risk = the SME can get its financing.
At the macroeconomic level, a larger population of SMEs can benefit from the financing.

20. Implementation of InnovFin
Examples of EIF Innovation Loans
Implementation of InnovFin
MUQUANS proposes a new generation of ultra-high performance measurement instruments based on a unique and patented technology, which relies on the utilization of laser cooling, trapping and manipulation of neutral atoms.
Localisation : Talence (Aquitaine)
Creation : 2011 by 3 PhDs in quantum physics (a spin-off from Institut d’Optique de Paris)
Staff : 15
First round with 3 VC in 2014 : EUR 1,7m raised
Needed financing to accelerate commercialization, consolidate technology and boost export
Eligibility criteria:
Has been awarded grants, loans or guarantees from an European or national R&I support scheme
Loan Amount:
EUR

21. Implementation of InnovFin
Examples of EIF Innovation Loans
Implementation of InnovFin
DEVISUBOX has developed innovative wireless photo webcams specialized to construction site monitoring. Commercialization started in 2013.
Needed finance for : starting to export – targeted markets : US, Germany, Emirates
Localisation : Marseille
Turnover : ~2M€
Staff : 24
Eligibility criteria:
Has been awarded grants, loans or guarantees from an European or national R&I support scheme
Loan Amount:
EUR
27/11/2018

22. Implementation of InnovFin
Examples of EIF Innovation Loans
Implementation of InnovFin
Provepharm is a French pharmaceutical company dedicating in the development and valorization of Drug Products world wide
Needed finance for : clinical studies required by the FDA to get a marketing authorization on the US market
Localisation : Marseille
Turnover : ~5M€
Staff : 12
Eligibility criteria:
R&I costs represent at least 10% of its total operating costs
Loan Amount:
EUR

23. Implementation of InnovFin
Examples of EIF Innovation Loans
Implementation of InnovFin
NETATMO is specialized in connected objects and intelligent systems (Home camera with face recognition, weather station for smartphone etc.)
Needed finance for : developing new commercialization channels and
investing in R&D in order to keep a competitive edge
Localisation : Boulogne
Turnover : ~12M€
Staff : 46
Eligibility criteria:
Has been awarded grants, loans or guarantees from an European or national R&I support scheme
Loan Amount:
EUR

24. Implementation of InnovFin
Examples of Seed Investment Loans
Implementation of InnovFin
VOGO develops and commercializes a very innovative video solution on mobile devices for sport event spectators (live access to different video cameras, slow motion, rewind etc.)
Partnership with BeIN Sport
Raised EUR 4m in 2014 (from founders, VC, Languedoc Region)
Needed financing to accelerate international expansion : office in Montreal in 2015, then Japan.
Localisation : Montpellier (Languedoc)
Creation : 2013
Staff : 6
Loan Amount:
EUR

25. Implementation of InnovFin
Examples of Seed Investment Loans
Implementation of InnovFin
XAMEN TECHNOLOGIES designs and develops and commercialize unmanned aircrafts (drones) for civil uses (security of industrial plants, aid after natural disaster, environment protection etc.).
Needed finance to: speed up commercialization
Raised EUR 1,3m in 2015
Localisation : Pau (Aquitaine)
Creation : 2012
Staff : 10
Loan Amount:
EUR

26. Thank you for listening Contact: sylvie.cogneau@bpifrance.fr