EIF invests in EonTech I, an Italian IT and technology-oriented venture capital fund

The European Investment Fund (EIF) has signed a commitment to be a cornerstone 25% investor in EonTech I, a new Italian-orientated venture capital fund focused on early stage IT and technology investments. The managers, Eontech Ventures, intend to invest primarily in Italy, with investments also planned in France and UK. EonTech I focus will be around the digital revolution main themes: digitalisation, distribution and access to information and content. Specific attention will be given to data communication equipment, software sub-systems and platforms, and infotainment systems and components. The EIF initial investment stands at some EUR 5m and will grow depending on the total size of the Fund at final closing.

This is already the 12th operation concluded by the EIF in Italy, bringing the total amount of EIF investments in this country to EUR 230m.

EonTech I is sponsored by Milan-based Banca Popolare Commercio e Industria. EIF participation is being made using the ETF Start-Up Facility. The Facility, managed by EIF, forms part of the European Union's Growth and Employment Initiative, a broader programme of European Union financial assistance to SMEs. It is specifically designed to support first-time venture capital funds.

The EIF is the European Union's specialised financial institution for venture capital and SME guarantees. Based in Luxembourg, the EIF was established in 1994 as a joint venture between the European Investment Bank (which has become its majority shareholder), the European Commission and European banks and financial institutions.

The EIF is now a major player in the European venture capital market: it has invested in some 145 funds all over the EU as well as in Central and Eastern Europe. Its venture capital portfolio amounts to EUR 1.8 billion and it is expected that some 60 new funds for an overall amount of about EUR 800 million will be put in place this year. The investment strategy of the EIF focuses essentially on the promotion of European technology through investments in venture capital funds located in the Union and the Accession Countries.

EIF guarantee instruments facilitate access to debt finance for SMEs through the intermediation of a wide range of banks and financial institutions. The latter are allowed to allocate capital to those operations at a rate of 20% in accordance with EIF's status as a Multilateral Development Bank under the European Solvency ratio Directive.