European Commission resources
Under the High Growth and Innovative SME Facility (GIF), EIF invests in specialised funds, which provide venture capital for SME financing. The GIF is funded by the European Community under the Competitiveness and Innovation Framework Programme 2007-13 (CIP). EIF manages the GIF on behalf of the European Commission.
The GIF's objective is to improve access to finance for the start-up and growth of SMEs, and investment in innovation activities, including eco-innovation. The GIF aims to achieve this objective by:
- contributing to the establishment and financing of SMEs and the reduction of the equity and risk capital market gap which prevents SMEs from exploiting their growth potential, with a view to improving the European venture capital market.
- supporting innovative SMEs with high growth potential, in particular those undertaking research, development and other innovation.
GIF comprises of two business lines, or "windows", known as GIF 1 and GIF 2, committed to specialised funds facilitating finance for eligible small businesses (SMEs). Please note that EIF does not finance SMEs directly.
- GIF 1 covers early stage (seed and start-up) investments investing in specialised venture capital funds such as early stage fund, funds operating regionally, funds focussed on specific sectors, technologies or research, technologies or research and technical development and funds linked to incubators, which in turn provide capital to SMEs. Co-investment in funds and investment vehicles promoted by business angels is also permitted.
- GIF 2 covers expansion stage investments by investing in specialised risk capital funds, which in turn provide quasi-equity or equity for innovative SMEs with a high growth potential in their expansion phase avoiding buy-out or replacement capital for asset stripping.
- GIF1 Implemenation Guidelines (PDF, 66.8 KB)
- GIF2 Implemenation Guidelines (PDF, 64.7 KB)
- GIF 1 and GIF 2 special EU requirements
- Nature: Equity or quasi-equity investments in Intermediaries.
- Investor: EIF operates as investor on behalf of the EC.
- Signing period: Fund agreements can be signed until 31 December 2013.
- Duration: Investments typically consist of 5 to 12-year positions in Intermediaries.
- Amount: Commitment to a single Intermediary shall require a critical mass and shall not exceed EUR 30m.
Eco-Innovation and Clean Technology
The GIF instrument is also aimed at supporting clean technology or eco-Innovation SMEs. Under GIF, higher investment rates are allowed in the case of funds focused on eco-innovation.