InvestEU: accessing European financing through banks and investors

European investment with momentum – without any red tape from Brussels? Yes, it's possible. With the InvestEU programme, the EU has created an instrument that addresses the very issue that often stalls good ideas: financing.
An EU guarantee of 26.2 billion euros will enable investments worth over 372 billion euros across Europe – through banks, funds and other partners. Sounds big? It is. And it works.

What is InvestEU – and who can benefit from it?

InvestEU brings together various previous EU financing instruments (including the EFSI, the so-called ‘Juncker Fund’) under one roof and focuses on four areas of the future:

1. Sustainable infrastructure: energy, mobility, digitalisation
2. Research, innovation and digitalisation
3. Financing for SMEs and mid-caps
4. Social investment and skills

InvestEU thus aims to strengthen the competitiveness of the EU economy in research, innovation and digitalisation, promote sustainable growth, support scientific and technological progress, integrate capital markets and enable a sustainable economic recovery after the COVID-19 crisis.

Important: InvestEU is not a traditional grant programme. Companies receive loans, equity investments or guarantees backed by the EU through a financial intermediary.

A successful example of InvestEU is German Bionic: The European Investment Bank (EIB) invested 15 million euros in the research and development activities of German Bionic, a company based in Augsburg, Germany. It develops and manufactures intelligent exoskeletons that reduce physical strain on workers in logistics and care professions. This technology helps improve occupational safety and prevent work-related injuries. The financing from the EIB, supported by the InvestEU programme, will enable German Bionic to further develop its innovative products and establish them on the international market.

How can you access the funding?

The path to InvestEU financing does not lead directly through the EU, but rather through banks, development banks, funds or venture capital companies (VCs) in the member states. These so-called financial intermediaries work together with the major EU implementation partners, such as the European Investment Bank (EIB) or the European Investment Fund (EIF).

For larger projects (e.g. those of supraregional or strategic importance, such as ‘Projects of Common Interest’ in the energy or infrastructure sector), it is also possible to contact the EIB or the EIF directly.

For small and medium-sized enterprises and growth companies, it works as follows:

Step by step to InvestEU funding

1. Set up a project
   A clear business case is essential. The financing gap, market potential and impact should be clearly demonstrated.
2. Find a suitable intermediary
   This could be your own bank, a regional development bank or a VC with access to InvestEU. An overview is available on the EU website Access to Finance.
3. Apply for financing
   The application process is the same as for traditional loans or equity investments, but is backed by the EU guarantee. This often means better terms and lower barriers.
4. Get off to a flying start
   Once your application has been approved, the capital is released for investment in equipment, digitalisation, research or sustainable transformation.

Why this is exciting for companies

• Faster access to capital
  especially for projects that would be rejected by traditional banks
• Improved terms
  thanks to the EU guarantee: lower interest rates, more flexible collateral
• Strong leverage
  for projects that focus on innovation, climate protection or digitalisation

And where does EurA come in?

• We check whether your project is eligible for InvestEU.
• We identify suitable intermediaries in your region.
• We support you in preparing your application and communicating with banks or investors.
• And we help you prepare your project so that it is effective and eligible for funding.

InvestEU is not ‘off-the-shelf’ funding – but an enormously powerful tool for growth-oriented, sustainable and forward-looking companies. With the right advice, a complex EU programme can be turned into a tangible financing model.

Talk to our experts for EU funding – and put your project in the fast lane with EurA and InvestEU.

 Text: Monika Dimitrova