Date post: | 14-Apr-2017 |
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The EU’s investment programme for research &innovation (InnovFin) and their role for long term investment in innovation
Bpifrance’s Experience31 MARCH – THE HAGUE – THE NETHERLANDS
EFSI
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Bpifrance in short
A strong partner of EU Innovation programsHorizon 2020 national contact point for SMEs & Risk financeEUROSTARS
6 activities• Guarantees • Loans • Innovation • Funds of funds• Small cap investment• Mid/large cap
investment
90%of decisions taken at regional level
4 values to Serve the Future: Simple, Accessible, Optimistic and Proactive
• A public-sector bank created in 2012
• A full-service bank supervised by the ECB
• Largest promotional bank in France• Significant know-how of the French
SME market• Strong experience in providing
financing to innovative SMEs
2,200 employees
42regional offices
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Bpifrance in 2014
12.5 Bn€of financing
5.9 Bn€ of short term loans3.8 Bn€ of classic loans & cofinancing1.7 Bn€ of development lending1.1 Bn€ of innovation financing
7.8 Bn€of guaranteed loans
1.4 Bn€of equity
127 M€ directly invested in venture capital
159 M€ directly invested in SMEs516 M€ directly invested in Midcaps and large companies641 M€ subscribed into partner funds
3.7 Bn€ risks taken*
*Partner Banks’ loans are partially guaranteed from 40% up to 70%, with the support of most French Regions
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• Bpifrance has undertaken substantial marketing efforts to promote the InnovFin facility in France.
• Very good track record in terms of utilization under the RSI/InnovFin facility.
• • Thanks to InnovFin, Bpifrance can provide loans on better terms to innovative SMEs
& small Mid-caps.• • Bpifrance takes into account InnovFin and its costs in its pricing calculation for each
loan. • • Enhanced access to finance is thus provided to innovative companies in
France.
Bpifrance & InnovFin
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Innovation products before EU support
AR / PTZI
Growth Loan
GRANT
Risk level
Sales
Investments
Formulation
Feasibility
Development
Pre-launching
Launching &
growth time
5M€
3M€
500k€
Amount
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With EU support (RSI & InnovFin)
AR / PTZI
SeedLoan
Growth Loan
GRANT
Risk level
Sales
Investments
Formulation
Feasibility
Development
Pre-launching
Launching &
growth time
Innovation loan
5M€
3M€
500k€
Amount
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• 1st transaction approved by EIF under the Juncker plan in May 2015• • Supported through the SME window of the Juncker Plan (frontloading
procedure) • • A portfolio of EUR 420m of loans to innovative SMEs and Small Midcaps
guaranteed by EIF
• Guarantee covering two recent products: •- The EIF Innovation Loan (320M€ with a 50% guarantee from EIF)•- The EIF Seed Investment Loan (100M€ with a 40% guarantee)
Bpifrance’s InnovFin Agreement
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The EIF Innovation Loan (320M€)• Launch: February 2014 through the Risk Sharing Initiative (RSI)• Beneficiaries : SMEs and Small Midcaps (up to 500 employees)• Aim: to finance the industrial launch of innovation. • Amount : up to EUR 5m• Very attractive conditions : no collateral required, 2 years grace period
The EIF seed investment loan (100M€)• Launch: 2015• Beneficiaries : targets innovative start-ups of less than 5 years which access to new equity funds from
investors• Aim: to help innovative start-ups in the negotiation of their valorization with identified investors (Loan
concomitant to the fund raising)• Amount: up to EUR 500k€ (1€ of debt for 2€ in equity received)
Bpifrance’s InnovFin Agreement
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• Bpifrance has efficiently rolled out the InnovFin facility, leading to a smooth implementation and a very good utilization of the product.
• As at February 2016 (after only 8 months), Bpifrance had provided: • - EUR 200m (PI FEI product) = 62% of the portfolio• - EUR 50m (PAi Start-up product) = 50% of the portfolio
• Thanks to InnovFin, Bpifrance has already supported more than 700 innovative companies (Target = 1245 companies).
A very successful product
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• Strong pipeline of Bpifrance under the InnovFin facility
• Bpifrance is currently applying for an increase of its InnovFin portfolio to continue financing innovative SMEs & small Mid-caps at favorable conditions.
• An additional 1790 companies are expected to be included in the InnovFin portfolio following this increase.
Next steps - increase
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• Provepharm is a French pharmaceutical company dedicating in the development and valorization of Drug Products world wide
• Needed finance for : clinical studies required by the FDA to get a marketing authorization on the US market
• Localisation : Marseille • Turnover : ~5M€• Staff : 12
Recent EIF Innovation loans
Eligibility criteria:
R&I costs represent at least 10% of its total operating costs
Loan Amount:
EUR 2 000 000
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• DEVISUBOX has developed innovative wireless photo webcams specialized to construction site monitoring. Commercialization started in 2013.
• Needed finance for : starting to export – targeted markets : US, Germany, Emirates
• Localisation : Marseille• Turnover : ~2M€• Staff : 24
Recent EIF Innovation loans
Eligibility criteria:
Has been awarded grants, loans or guarantees from an European or national R&I support scheme
Loan Amount:
EUR 1 500 000
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• NETATMO is specialized in connected objects and intelligent systems (Home camera with face recognition, weather station for smartphone etc.)
• Needed finance for : developing new commercialization channels and
• investing in R&D in order to keep a competitive edge
• Localisation : Boulogne• Turnover : ~12M€• Staff : 46
Recent EIF Innovation loans
Eligibility criteria:
Has been awarded grants, loans or guarantees from an European or national R&I support scheme
Loan Amount:
EUR 2 000 000
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• 1/ Process innovation should be clearly acknowledged as a key dimension of innovation supported through InnovFin. Any loan financing an investment in process innovation should therefore be eligible to InnovFin SMEG.
• 2/ Reporting requirement and fee structure of InnovFin Midcap (MCG- EIB) should be better aligned to those of InnovFin SMEG.
• 3/ Bpifrance welcome the initiative to create a new uncapped Guarantee for Unsecured Loans to RDI-intensive SMEs and Small Mid-caps – this addresses a clear market gap.
• 4/ Bpifrance sees the Equity Investment Platform of the EFSI SME Window as an opportunity to promote multilateral cooperation between NPBs and VC cross-border investments.
Bpifrance’s proposals
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