The European Investment Fund (FEI) and AXIS, a venture capital company of the Official Credit Institute (ICO), have launched the “EAF-Isabel La Católica Fund”In the framework of the pan-European initiative“European Angels Fund (EAF)”, From the promotion of new non-bank financing channels to the private sector. The creation of this Fund is also part of the support for entrepreneurship and business development.
The "EAF-Isabel La Católica Fund”Is a co-investment fund that will provide capital to non-institutional investors seeking to invest in the early stages of business projects launched by entrepreneurs. Through this collaboration, the “EAF-Isabel La Católica Fund”Will double the investment capacity of Business Angels and it will boost investments in SMEs aimed at their growth in their initial stages.
The agreement for the constitution of the fund has been signed today by Richard Pelly, executive director of the FEI, and the president of the ICO and AXIS, Román Escolano, in the presence of the Secretary of State for Economy and Business Support, Fernando Jiménez Latorre.
The Fund presented today is the second to join the project "European Angels Fund" In the month of March, Germany was the first European country to join this initiative.
The "EAF-Isabel La Católica Fund“It adapts to the purposes and investment needs of each Business Angel. To achieve this objective, instead of co-investing in individual companies, the Fund grants Business Angels capital and decision-making capacity to carry out investments, so that the “EAF-Isabel La Católica Fund”Will contribute an amount equivalent to that contributed by each of them.
The amounts assigned to each Business Angels They will depend on the total investment objective in each case and may vary between 250,000 euros and five million euros. Investments will be made in innovative companies and should always be used to finance new projects.
The "EAF-Isabel La Católica Fund”Has been promoted by the European Investment Fund and AXIS, the venture capital manager 100% owned by the Official Credit Institute (ICO), shareholder of the FEI. Originally, the Fund has a capital of 20 million euros, with the aim of reaching 30 million euros and growing according to the success of the initiative. The "EAF-Isabel La Católica Fund“It will be managed by the FEI.
During the presentation held today in Madrid, the Secretary of State for Economy and Business Support, Fernando Jiménez Latorre, highlighted the importance of the “EAF-Isabel La Católica Fund"As an initiative to support seed capital, representing part of a stimulus plan for financing" alternative to bank financing for Spanish SMEs ", which in turn is part of a broader plan to stimulate entrepreneurs, whose Approval is scheduled for the first few months of next year.
Richard Pelly, Executive Director of the European Investment Fund has stated that "With the"EAF-Isabel La Católica Fund"Our objective is to stimulate the activity of Business Angels and the little ones Family Offices in Spain with a clear objective and in a sustainable way. Given the current economic situation, Business Angels they are an important source of financing for new innovative SMEs; thus, the FEI intends to develop this initiative in more European countries. ”
For his part, Román Escolano, President of AXIS and the Official Credit Institute (ICO), has highlighted the importance of promoting initiatives such as "EAF-Isabel La Católica Fund"Since they constitute an" alternative and novel source of financing that will allow entrepreneurs to develop their investment projects in optimal conditions ". In addition, it has highlighted the "close collaboration" that both ICO and AXIS maintain with other European institutions, such as the FEI, to design new non-bank financing formulas that favor the growth of Spanish companies.
The Business Angels interested in collaborating with the “EAF-Isabel la Católica Fund"Must submit their applications on the website www.eif.org. The most important requirements for the selection are the accreditation of its financial capacity during the duration of the contract, the generation a deal-flow of high quality and proven investment experience in the early stages of business projects.
European Investment Fund
The central mission of the EIF is to support European SMEs by assisting them in their access to sources of financing. FEI designs and develops risk capital instruments and guarantees that specifically cover this market sector. Within this role, FEI furthers the EU's goals that promote innovation, research and development, entrepreneurship, growth and jobs. At the end of 2011, the total net commitment of the EIF in funds of private equity it amounted to more than 6,000 million euros. With investments in more than 390 funds, the EIF is one of the main players in the European venture capital market due to the scale and scope of its investments, especially in high-tech sectors in their phases of early stage. The EIF's loan and guarantee portfolio amounted to more than € 4.4 billion in almost 220 operations at the end of 2011, positioning itself as a major force in the sector and a leading guarantor in micro-finance.
European Angels Fund (EAF)
The European Angels Fund (EAF), managed by the European Investment Fund, provides capital to Business Angels and other non-institutional investors with the aim of financing innovative companies through joint ventures with them. This initiative collaborates with Business Angels to help them increase their investment capacity through joint ventures in companies in seed stages, early stage or expansion. The EAF activity adapts to the investment style of each Business Angel, not interfering in the decision-making of the investments or in their management.
The European Angels Fund (EAF) began its activity in Germany in March 2012 in collaboration with the Business Angels Netzwerk Deutschland (BAND) Y ERP-EIF Dachfonds. In November 2012, the activity was extended to Spain. In its fullness, the EAF will cover several countries or regions at a pan-European level. Once established, the EAF will foster and support international collaboration between Business Angels. It will also contribute to the establishment of Business Angels Y Family Offices as an attractive alternative asset class.
AXIS, a venture capital management company, 100% owned by the Official Credit Institute (ICO), makes capital and quasi-capital instruments available to companies to finance their growth.
It was the first Venture Capital management company established in Spain in 1986, registered under number 1. AXIS has a total invested of more than 250 million euros in more than 130 companies. Currently manages the following Funds:
- FOND-ICOpyme: aims to support companies in their expansion plans, with financing and a long-term vision.
- FOND-ICOinfraestructuras: its purpose is to participate in transport, energy, social and service infrastructure projects.