2.2. Equity facility

The Equity facility will focus on early-stage venture capital funds and public and private funds-of-funds providing venture capital and/or mezzanine capital to individual portfolio enterprises. These enterprises may, in addition, seek debt financing from financial intermediaries implementing the Debt facility. Furthermore, the Equity facility will also explore possibilities to support business angels and other potential sources of equity finance. This could also include support at the phase 3 stage of the SME instrument subject to the level of demand, as well as to technology transfer (including the transfer of research results and inventions stemming from the sphere of public research to the productive sector, for example through proof-of-concept). The Equity facility will also have the possibility to make expansion and growth-stage investments in conjunction with the Equity Facility for Growth (EFG) under COSME (this includes investments in funds-of-funds with a broad investor base and includes private institutional and strategic investors as well as national public and semi-public financial institutions). In the latter case, the investment from the Equity facility of Horizon 2020 shall not exceed 20 % of the total Union investment except in cases of multi-stage funds, where funding from EFG and the Equity facility of Horizon 2020 will be provided on a pro rata basis, based on the funds' investment policy. Like the EFG, the Equity facility shall avoid buy-out or replacement capital intended for the dismantling of an acquired enterprise. The Commission may decide to amend the 20 % threshold in light of changing market conditions. The Union Equity Financial Instrument for SMEs' R&I and growth referred to in the first paragraph of section 2 should be of an appropriate size and scale to back innovative companies from the earliest stage through to growth and expansion, in an integrated approach. Investment parameters will be set in such a way that specific policy objectives, including the targeting of particular groups of potential beneficiaries, can be achieved while still preserving the market-oriented, demand-driven approach of this instrument. The Equity facility may be supported by budgetary contributions from: other parts of Horizon 2020; other frameworks, programmes and budget lines in the general budget of the Union; particular regions and Member States; and specific entities or initiatives. The leverage of the Equity facility - defined as the total funding (i.e. Union funding plus contribution from other financial institutions) divided by the Union financial contribution - is expected to be around 6, depending on market specificities, with an expected multiplier effect - defined as the total of investments made by supported beneficiaries divided by the Union financial contribution - of, on average, 18.

← anx_I__cpt_1__cpt_5__cpt_2__cpt_1__text_6 · All articles · anx_I__cpt_1__cpt_5__cpt_2__cpt_2__text_1 →

Source: EUR-Lex (Cellar) · retrieved 2026-11-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.