EquiFund, the newly created Fund-of-Funds initiative between Greece and the European Investment Fund (EIF) will invest up to 1 billion euros in early stage and growth funds.
The total commitments for now are 260 million euros. The ultimate target of the fund of funds is to secure up to 1billion euro to be invested into Greek startups.
For now, according to the Greek media, the primary target areas, so called „windows“ are: innovation window; early stage venture capital funds window; and growth stage private equity funds window.
According to the EIF’s press release, the aim of this new financial instrument, which will finance independently-managed funds, is to facilitate access to finance for entrepreneurs in the country. By attracting private capitals, the Fund will help them turn their ideas into concrete projects with high value added, for the direct benefit of the Greek real economy.
„The Greek Fund-of-Funds is the first initiative of this scale ever launched in Greece for equity investments into venture capital funds and will be a crucial source of finance for SMEs“, European Investment Bank President Werner Hoyer, said. „ The EIB Group is fully committed to supporting jobs and growth in Greece and this new Fund-of-Funds is a clear example of our continued investment engagement in the country”.
Dimitris Papadimitriou, the Greek Minister of Economy and Development estimated this partnership as transformation for Greece, both in terms of size and approach.
„It will support capital formation across the equity value chain. By partnering with EIF we are confident that the ramp up and implementation of this Fund of Funds shall be delivered in the best possible way.”
The startups and SMEs of primary focus
The innovation window is formed by two separate funds – The Technology Transfer Fund (TT Fund) and the Acceleration Fund.
The TT Fund will target projects and / or companies (SMEs) from universities, research centers or other organizations with significant research activity. The aim is to support research results that are of relevant level to technology, helping them with the developments of their business plan and helping them with commercial exploitation. The program may include investment projects of existing enterprises, establishing spin-off companies (spin-off, spin-out ), holding patent rights, concessions, etc. The Fund is expected to use funds for pre-seed investments, proof-of-concept and seed.
The Acceleration Fund, on the other hand, will support targeted groups / projects and / or startups (start-ups) as incubators, technology parks, spaces co-working (co-working spaces), departments in Universities and Research Centers etc. The aim of this Fund is to enable the necessary funds for services such as counseling (mentoring – coaching) and networking (networking) among groups concerned with investment, business, research, strengthening the academic ecosystem in the country. The Fund is expected to use funds for pre-seed investments, proof-of-concept and seed.
The second and the third window are aimed for any kind of business, with particular emphasis on sectors that are of strategic priority to the Greek economy, namely tourism, energy, agri-food, environment, logistics, information technology and communications, health and pharmaceuticals, creative and cultural industries…