The EIC Fund is Europe's flagship blended funding programme, combining EC innovation grants with equity investments from private investors (typically VCs). The biggest programme of this kind in Europe with a substantial multi-annual investment budget. There is, however, a significant gap between its promise and current delivery.
This is our series of Explainers, aiming to clarify key aspects of this programme: The Process of Signing a Deal.
What is the Process of Signing a Deal with the EIC Fund?
Overview: The EIC Fund investment process consists of 9 steps. Steps 1-3 involve standard communications between the award recipient and the EIC Fund as well as due diligence and compliance checks. In steps 4-6, the European Investment Bank (EIB) prepares the investment recommendation for the investment committee and Board of Directors to review. Finally, in steps 7-9, the company receives a term sheet and the investment agreement is signed.
How does the Convertible Note Work?
What is a convertible instrument?
A convertible instrument is a debt instrument with a convertibility feature attached to it. This makes it attractive to the issuing company since they are aiming to postpone dilution until the company’s next equity funding round. They offer flexibility to investors allowing them to shift the risks and rewards of their investment to some point after the initial investment.
How do they work in the EIC Fund's blended finance programme?
Following the initial assessment, beneficiaries are categorised according to various possible investment scenarios or 'buckets':
Read more: https://landing.winnovart.com/eic-fund-explainer-series-3
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