In the presence of the Prime Minister and the President of the European Investment Fund (EIF), the contract for the creation of the EquiFund Venture Capital Fund was signed yesterday.

EquiFund - Greek Fund-of-Funds

The new Fund will start with funds from European and National resources, from the European Investment Fund but also from private and institutional investors that will overcome 300 million euro.

According to the Υπουργείο Οικονομίας το συνολικό αποτέλεσμα που μπορεί να αποφέρει η επενδυτική πλατφόρμα είναι πολλαπλάσιο των αρχικών πόρων που δεσμεύονται, αφού μπορεί να προσεγγίσει leverage factor finally close to 10 since private co-investors, international credit institutions (EIB, EBRD, Black Sea Bank, World Bank, etc.), the fund manager and the company itself will contribute financially.

EquiFund will be managed by the European Investment Fund (EIF), a member of the European Investment Bank group.

The funding will be carried out through intermediary holding funds resulting from a competitive tendering process. Securing the financing of businesses enables high value-added investments to be made, which would not have been possible otherwise.

Where will Equifund invest?

There will be three main areas of investment, the so-called "windows" of the platform:

• investment in research and innovation;
• general entrepreneurship investments for early-stage enterprises, and
• general entrepreneurship investments for enterprises in the growth stage.

The mezzanine holding funds therefore correspond to the so-called 'windows', i.e. these three main areas of investment.

Investment in research and innovation

In the innovation window, the Technology Transfer Fund (TT Fund) and the Accelerator Fund. In principle, the creation of between 1 and 3 funds in the field of innovation is expected.

More specifically, the Innovation window is part of the general political objective:

The Innovation produced by Research to lead to the development of the Knowledge Economy, i.e. the production of wealth based on the knowledge resulting from the research activity.

Given that Greece produces original and internationally recognized scientific and research work, it is crucial to utilize research results that are at a high level of technological readiness and to support the structures that can accelerate this process.

The TT Fund will target projects and/or companies (SMEs) coming from HEIs, Research Centers or other organizations with significant research activity. The aim is to exploit research results that are at a relevant level of technological readiness, to formulate business plans and to commercialize them. The exploitation may include investment plans of existing companies, the establishment of spin-offs, spin-outs, the exploitation of patent rights, assignments of rights, etc. The Fund is expected to use funds for pre-seed, proof-of-concept and seed investments.

The Acceleration Fund will target groups / projects and / or new buisnnesses start-ups that are connected to entrepreneurship support structures such as Incubators, Technology Parks, co-working spaces, Structures in HEIs and Research Centers, etc. The aim during the operation of the acceleration fund is to provide the necessary funding so that actions such as mentoring – coaching and networking between interested groups with the investment, business, research, academic ecosystem are strengthened. The Fund is expected to use funds for pre-seed, proof-of-concept and seed investments.

Investments in entrepreneurship, of every stage of development

In general entrepreneurship, the creation of two windows is expected:

• For Early Stage Venture Capital Funds creation of 2-4 funds
• For Growth Stage Private Equity Funds create also 2-4 funds

As far as general entrepreneurship is concerned, the Fund will be addressed to all kinds of businesses, but with particular emphasis on the strategic priority areas of the Greek economy, i.e. τουρισμό, ενέργεια, αγροδιατροφή, περιβάλλον, εφοδιαστική αλυσίδα, τεχνολογίες πληροφορικής & επικοινωνιών, υγεία και φαρμακευτική βιομηχανία, δημιουργικές και πολιτιστικές βιομηχανίες, υλικά – κατασκευές with the aim of enhancing the competitiveness and extroversion of businesses, the transition to quality entrepreneurship, with a peak in innovation and the increase of domestic added value.