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?
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      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
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           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
         Indicative Term Sheet
          Borrower     up to 3,000 employees
          Borrower     up to 3,000 employees
          Instruments  Quasi-equity debt
          Instruments  Quasi-equity debt
          Purpose             To finance an investment budget
          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
          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
          Ticket  EUR 7.5m – EUR 50m
          Tenor Usually 5 to 7 years after drawdown
          Tenor Usually 5 to 7 years after drawdown
          Availability                      Up to 3 years after signature
          Availability                      Up to 3 years after signature
          Pricing             Target return commensurate to the risk, may include one or more of the following:
          Pricing             Target return commensurate to the risk, may include one or more of the following:
                              - cash interest
                              - cash interest
                              - compound interest (PIK)
                              - compound interest (PIK)
                              - warrants
                              - warrants
                              - profit participation, etc.
                              - profit participation, etc.
          Covenants           Case-by-case basis
          Covenants           Case-by-case basis
          Security     Un/Secured
          Security     Un/Secured
          Fees  Certain fees applicable
          Fees  Certain fees applicable
          Appraisal    Usually between 3 and 5 months
          Appraisal    Usually between 3 and 5 months
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           EIB Venture Debt comparison
         EIB Venture Debt positioning
         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     1-2 years
                                                                              to 2-3 years
         Typical financing size          EUR 1-15m                            EUR 7.5-50m                 > EUR 10-100m
         Cost                            €€€€€                                €€                          €
                                         Performance based                    Performance based           Fixed
         Return structure                Strong dilution                      <10% dilution               None
                                                                              High growth, credible       Stable cash flows, large 
         Key requirements                High growth business plan            business plan,              asset base, security, 
                                                                              post series B/C             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
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        Key advantages
        Companies                                Founders and investors
           Long term strategic view                  Limited dilution 
           Stable and reliable source of capital     IRR enhancement
           – we are a triple-A investor              Hands-off approach with no direct 
           Less frequent rounds - the company        involvement in daily management
           can focus on business instead of 
           raising financing
           Flexible terms
           Customized structure
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