EU makes equity investments in 42 innovative start-ups
In a ‘new form of financing’, a total of €178m is being invested in 42 European companies, including an Irish start-up.
The EU is becoming a direct shareholder in more than 40 promising start-ups and SMEs through the new European Innovation Council (EIC) Fund.
The European Commission announced yesterday (6 January) that 42 companies will together receive equity financing of around €178m to develop and scale breakthrough innovations in areas such as health, the circular economy and advanced manufacturing.
The equity investments range from €500,000 to €15m per company, and will complement grant financing that has already been provided through the EIC Accelerator Pilot. This is the first time that the European Commission has made direct equity investments in start-ups, with ownership stakes expected to range from 10pc to 25pc.