EU Funding available for investors investing in game developer studios in 2017


The European Union has number of different instruments for investors interested in boosting their investment funds with public capital. The main ones are listed below.

3.1 COSME Equity Facility For Growth Investment

  • Who can become a financial intermediary?
    • An entity undertaking risk capital investments which is eligible to receive funding under the EFG; and which shall include investment funds, private equity funds and special purpose vehicles established or in formation, by providing long-term equity and/or quasi-equity but shall exclude entities (i) targeting buy out or replacement capital intended for asset stripping and (ii) operating lending activities requiring a banking licence. For the avoidance of doubt, these may include funds or investment vehicles that provide co-investment facilities for Business Angels or co-operate with Business Angels in any other format.
  • What should an intermediary invest in?
    • Final recipients satisfy all of the following eligibility criteria:
      • the final recipient is an SME immediately before or after the time of first investment
      • the final recipient is established and operating in an EFG Participating Country at the time of first investment;
      • the final recipient is in its Expansion and Growth Stage at the time of first investment
    • What is the size of the investment?
      • In any event, the maximum size of the EFG Investment in an EFG Financial Intermediary shall be limited to EUR 30 million or equivalent.
      • Each EFG Investment shall represent:
        • at least 7.5% of total commitments to the EFG Financial Intermediary at the closing at which the EFG Investment is made;
        • up to 25% of the total commitments to the EFG Financial Intermediary at any closing.
      • What is the duration of the EFG investment?
        • EFG Investments shall usually consist of 5 to 15 year positions in EFG Financial Intermediaries. In any event, the contractual lifetime of any EFG Investment shall not exceed 2034.
      • DL: 30.9.2020
      • More information: http://www.eif.org/what_we_do/equity/single_eu_equity_instrument/index.htm

 


3.2 European Fund For Strategic Investment (EFSI) Equity Instrument

  • EFSI expansion and Growth window
    • Who can become a financial intermediary?
      • An investment fund, a Fund-of-Funds, a (co-) investment scheme in any form, and a special purpose vehicle, that undertakes long term risk capital investments in the form of equity, preferred equity, Hybrid Debt-Equity Instruments, other type of mezzanine financing, and/or debt in case of PbR Investment Schemes and/or SIB Investment Schemes, but excluding entities targeting buy-out (or replacement capital) intended for asset stripping.
      • At least 30% of total commitments to an EFSI Financial Intermediary are to be made by independent private investment sources.
      • In order to catalyse private sector investments, the majority of the capital committed to any InnovFin Financial Intermediary shall be provided by investors that pass the market economy operator test
    • What should an intermediary invest in?
      • SMEs, Small Mid-caps, Social Enterprises or Social Sector Organisations that have already established a product or service, and has already generated revenue, but may or may not be making a profit and needs financing to grow and expand.
    • What is the size of the EFSI investment? EFSI investment shall
      • a)  not exceed fifty million euros (EUR 50,000,000); except if the EFSI Investment is entered into with a Fund-of-Funds;
      • b)  represents at least 7.5% of the commitments made at the closing at which the EIF is admitted (excluding any amount committed to the EFSI Financial Intermediary in previous closings, if any);
      • c)  not exceed 50% of the aggregate commitments made to the EFSI Financial Intermediary, except in case of EFSI Financial Intermediaries investing in the area of Social Impact and co-investment funds/schemes, in which EFSI Investment may constitute up to 100% of total commitments
    • What is the duration of the EFSI investment?
      • The lifetime of the EFSI Investment shall not exceed 15 years (or 20 years in case of investments in a Fund-of-Funds or Technology Transfer Funds), plus up to 3 years extension. 
  • EFSI InnovFin Equity facility – Early Stage window
    • Who can become a financial intermediary
      • Venture capital funds, BA Funds, Technology Transfer Funds, Fund-of Funds focusing on Early Stage, excluding entities targeting buy out or replacement capital intended for asset stripping, which:
        • a) undertakes risk capital investments by providing long term investments in equity, quasi-equity, Hybrid Debt-Equity and/or other mezzanine financing; and
        • b) focusses on areas covered by the societal challenges and industrial leaderships of Horizon 2020 (such as life sciences, clean energy, ICT or technology), or otherwise targets technological, non-technological, organisational or social innovation by investing, inter alia, in enterprises (including Social Enterprises).
      • What should an intermediary invest in?
        • An enterprise, which satisfy all of the following eligibility criteria:
          • a)  are established or operating in the EU at the time of first investment;
          • b)  are in Early Stagat the time of first
          • c)  any additional eligibility criteria that may be specified in the InnovFin Fund Agreement.
        • What is the size of the EFSI investment?
          • The maximum size of the single InnovFin Investment shall not exceed EUR 50 million or equivalent.
          • Each InnovFin Investment shall represent:
            • at least 7.5% of the commitments of the InnovFin Financial Intermediary raised in the closing of the InnovFin Investment (excluding any amount raised in the previous closings);
            • up to 25% of the total commitments to the InnovFin Financial Intermediary
          • Notwithstanding, the commitment under an InnovFin Investment may represent up to 50% of the total commitment of the InnovFin Financial Intermediary, if the InnovFin Financial Intermediary is a BA Fund, a Technology Transfer Fund, or an InnovFin Investment is made at any closing other than the final closing, and a policy fit of an InnovFin Investment in an intermediary is high as per EIF’s assessment.
        • What is the duration of the EFSI investment?
          • InnovFin Investments shall usually be concluded for 5 to 15 years (except for Technology Transfer or Funds-of-Funds, where InnovFin Investments shall not exceed 20 years), plus up to 3 years extension.
        • DL: Apply the funding before 5.5.2018, “first come, first served”
        • More information: http://www.eif.org/what_we_do/efsi/equity/index.htm

 


3.3 EIF – European Investment Fund

  • Private Equity and Venture Capital Fund Investments
    • Who can become a financial intermediary? EIF aims at investing in
      • fund management companies with Independent management teams that raise funds from a wide range of investors to provide risk capital to growing SMEs in Europe
      • funds targeting early stage companies that are developing or using advanced technologies in industry or services.
    • What should an intermediary invest in? The EIF-supports funds that provide entrerprises with equity finance, but also advice and know-how, in the following areas:

3.4 Single EU Equity Financial Instrument (InnovFin)

  • Who can become a financial intermediary
    • Venture capital funds, BA Funds, Technology Transfer Funds, Fund-of Funds focusing on Early Stage, excluding entities targeting buy out or replacement capital intended for asset stripping, which:
      • a) undertakes risk capital investments by providing long term investments in equity, quasi-equity, Hybrid Debt-Equity and/or other mezzanine financing; and
      • b) focusses on areas covered by the societal challenges and industrial leaderships of Horizon 2020 (such as life sciences, clean energy, ICT or technology), or otherwise targets technological, non-technological, organisational or social innovation
    • What should an intermediary invest in?
      • An enterprise, which satisfy all of the following eligibility criteria:
        • a)  are established or operating in the EU at the time of first investment;
        • b)  are in Early Stage at the time of first investment
        • c)  any additional eligibility criteria that may be specified in the InnovFin Fund Agreement.
      • What is the size of the investment?
        • In any event, the maximum size of the single InnovFin Investment shall not exceed EUR 50 million or equivalent.
        • Each InnovFin Investment shall represent:
          • at least 7.5% of the commitments of the InnovFin Financial Intermediary raised in the closing of the InnovFin Investment (excluding any amount raised in the previous closings);
          • up to 25% of the total commitments to the InnovFin Financial Intermediary as at the date of an InnovFin Investment.
        • Notwithstanding, the commitment under an InnovFin Investment may represent up to 50% of the total commitment of the InnovFin Financial Intermediary, if the Intermediary is a BA Fund, or a Technology Transfer Fund, or an InnovFin Investment is made at any closing other than the final closing, and a policy fit of an InnovFin Investment in an intermediary is high as per EIF’s assessment.
      • What is the duration of the EFSI investment?
        • InnovFin Investments shall usually be concluded for 5 to 15 years (except for Technology Transfer or Funds-of-Funds, where InnovFin Investments shall not exceed 20 years), plus up to 3 years extension.
      • DL: 30.9.2020
      • More information: http://www.eif.org/what_we_do/equity/single_eu_equity_instrument/index.htm