Transcript "Access to Risk Finance" in HORIZON 2020

Horizon 2020 Launch Event
Ljubljana, 29 November 2013
Access to Risk Finance
Financial Instruments of Horizon 2020
Clara de la Torre, Director DG RTD-C
DG Research and Innovation
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Research and
Innovation
"Access to Risk Finance" in HORIZON 2020

Part of the Horizon 2020 budget (3.69%) will not be provided through
grant funding but in the form of risk-sharing (for loans and
guarantees) and by providing risk finance (equity)

Goal: Stimulate more investment in research and innovation,
notably by the private sector

Addressing financing gaps: Intervention only if there are clear
financing gaps in the Research and Innovation delivery chain (notably
due to high risk)

Building a bridge from R&D to Innovation: Effective and costefficient way to complement grant funding under Horizon 2020 and
translate R&D results to the market

Dedicated Access to Risk Finance instruments are built on the success
of the current FP7 financial instruments (RSFF loans and RSI loan
guarantees for Research and Innovation investments)
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Policy
Research and
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HORIZON 2020: Dedicated "Access to
Risk Finance" (sub)programme
 Objectives: Facilitate access to risk finance for (1) RDI-driven/
innovative SMEs & small midcaps and (2) ambitious RDI projects
carried out by a variety of recipients (companies, stand-alone
projects etc.)
 Around EUR 2.725 billion in total for market-driven "Financial
Instruments"
 One Debt instrument; one Equity instrument;
accompanying measures
 At least 1/3 of the budget shall support RDI-driven SMEs and
small midcaps
 Implementation through banks, funds and other
intermediaries at European level (European Investment Bank,
European Investment Fund) and national/ regional level
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 Debt financial instrument:
 Loan and guarantee facility for RDI investments:
Loans and guarantees for investments in Research &
Innovation; targeted at a wide range of beneficiaries such
as midcaps (up to 3,000 employees), larger companies,
research institutes, stand-alone projects, PPPs, other entities;
particular approach for innovative midcaps; loan amounts
above EUR 7.5 m
 Loan guarantee facility for SMEs & small midcaps:
Loan guarantee facility for loans to research-intensive and
innovative SMEs & small midcaps; loan amounts between
EUR 25,000 to 7.5 m
 SME Initiative: Joint Guarantee Instrument/ Securitization
(risk-sharing with first-loss-taking by the EU) for loans to
(innovative) SMEs and small midcaps; currently under
development, involving Horizon 2020, COSME and ESIF
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 Equity financial instrument:
• Early stage finance for innovative enterprises (notably seed
and start-up companies); limited growth-stage finance also
possible
• Pilot facility for technology transfer to bring R&D results
from public research organisations and universities to the market
(licensing; creation of spin-off companies); currently under
development
 Accompanying measures:
Technical and financial assistance (of EIB); improving investorreadiness of start-ups, SMEs and small midcaps; piloting coinvestment by Business Angels; prizes for best practices in R&I
finance etc.
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Policy
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How to benefit from Horizon 2020
Access to Risk Finance
DEBT (Loans and guarantees)
Loans of EUR 7.5 m
and above
Wide range of
beneficiaries
Guarantees for loans
up to EUR 7.5 million
SMEs and small midcaps
Banks and guarantee
institutions*
EIB
EIF
EQUITY
Early-stage equity
Innovative enterprises
Fund**
EIF
*Bank or a financial institution selected on the basis of the call for expression of
interest that signed an agreement with the EIF
**Fund selected on the basis of a call of expression of interest that signed an
agreement with the EIF
Policy
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Links to other EU programmes: COSME
Horizon 2020 and COSME are complementary
programmes to generate growth and jobs
Different focus:

Horizon 2020 = innovation-driven growth

COSME = support to create favourable business
environment and competitiveness
Closely coordinated with for instance:

Complementary financial instruments (debt and
equity), with facilities in both programmes serving
complementary objectives

Enterprise Europe Network set up under COSME, but
support to SMEs for EU funding
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More information
 Horizon 2020 Financial Instruments
 RSFF
http://www.eib.org/products/rsff/
 RSI
www.eif.org/what_we_do/guarantees/RSI/index.htm
 EU Access to Finance
 Specific portal
www.europa.eu/youreurope/business/index_en.htm
 Horizon 2020
 General portal
http://ec.europa.eu/research/horizon2020/index_en
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Policy
Research and
Innovation
Not legally binding
Thank you very much
for your attention!
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Research and
Innovation