Research and Innovation Research and Innovation Research and Innovation Research and Innovation Access to Risk Finance Financial Instruments of Horizon 2020 Clara de la Torre, Director DG RTD-C DG Research and Innovation Horizon 2020 Launch Event Ljubljana, 29 November

Policy Research and Innovation Research and Innovation 2 "Access to Risk Finance" in HORIZON 2020  Part of the Horizon 2020 budget (3.69%) will not be provided through grant funding but in the form of risk-sharing (for loans and guarantees) and by providing risk finance (equity)  Goal: Stimulate more investment in research and innovation, notably by the private sector  Addressing financing gaps: Intervention only if there are clear financing gaps in the Research and Innovation delivery chain (notably due to high risk)  Building a bridge from R&D to Innovation: Effective and cost- efficient way to complement grant funding under Horizon 2020 and translate R&D results to the market  Dedicated Access to Risk Finance instruments are built on the success of the current FP7 financial instruments (RSFF loans and RSI loan guarantees for Research and Innovation investments) 2

Policy Research and Innovation Research and Innovation 3  Objectives: Facilitate access to risk finance for (1) RDI-driven/ innovative SMEs & small midcaps and (2) ambitious RDI projects carried out by a variety of recipients (companies, stand-alone projects etc.)  Around EUR billion in total for market-driven "Financial Instruments"  One Debt instrument; one Equity instrument; accompanying measures  At least 1/3 of the budget shall support RDI-driven SMEs and small midcaps  Implementation through banks, funds and other intermediaries at European level (European Investment Bank, European Investment Fund) and national/ regional level HORIZON 2020: Dedicated "Access to Risk Finance" (sub)programme 3

Policy Research and Innovation Research and Innovation 4  Debt financial instrument:  Loan and guarantee facility for RDI investments: Loans and guarantees for investments in Research & Innovation; targeted at a wide range of beneficiaries such as midcaps (up to 3,000 employees), larger companies, research institutes, stand-alone projects, PPPs, other entities; particular approach for innovative midcaps; loan amounts above EUR 7.5 m  Loan guarantee facility for SMEs & small midcaps: Loan guarantee facility for loans to research-intensive and innovative SMEs & small midcaps; loan amounts between EUR 25,000 to 7.5 m  SME Initiative: Joint Guarantee Instrument/ Securitization (risk-sharing with first-loss-taking by the EU) for loans to (innovative) SMEs and small midcaps; currently under development, involving Horizon 2020, COSME and ESIF 4

Policy Research and Innovation Research and Innovation 5  Equity financial instrument: Early stage finance for innovative enterprises (notably seed and start-up companies); limited growth-stage finance also possible Pilot facility for technology transfer to bring R&D results from public research organisations and universities to the market (licensing; creation of spin-off companies); currently under development  Accompanying measures: Technical and financial assistance (of EIB); improving investor- readiness of start-ups, SMEs and small midcaps; piloting co- investment by Business Angels; prizes for best practices in R&I finance etc. 5

Policy Research and Innovation Research and Innovation How to benefit from Horizon 2020 Access to Risk Finance Loans of EUR 7.5 m and above 6 Wide range of beneficiaries EIB Guarantees for loans up to EUR 7.5 million Early-stage equity SMEs and small midcaps Innovative enterprises Banks and guarantee institutions* * Bank or a financial institution selected on the basis of the call for expression of interest that signed an agreement with the EIF Fund** **Fund selected on the basis of a call of expression of interest that signed an agreement with the EIF EIF DEBT (Loans and guarantees) EQUITY

Policy Research and Innovation Research and Innovation Links to other EU programmes: COSME Horizon 2020 and COSME are complementary programmes to generate growth and jobs Different focus:  Horizon 2020 = innovation-driven growth  COSME = support to create favourable business environment and competitiveness Closely coordinated with for instance:  Complementary financial instruments (debt and equity), with facilities in both programmes serving complementary objectives  Enterprise Europe Network set up under COSME, but support to SMEs for EU funding 7

Policy Research and Innovation Research and Innovation 8 More information  Horizon 2020 Financial Instruments  RSFF  RSI  EU Access to Finance  Specific portal  Horizon 2020  General portal Not legally binding 8

Research and Innovation Research and Innovation Thank you very much for your attention! 9