InnovFin Corporate Research equity aims at increasing the supply of equity-type financing under the European Fund for Strategic Investments (EFSI).

The financing must support an underlying R&I programme and consist of an equity type operation under EFSI.

Mid-caps and SMEs, can also be eligible for InnovFin Corporate Research equity if they comply to the following eligibility criteria for growth finance under EFSI:

• Less than 3 000 full-time employees at the time of application
• Raised already one or more rounds of financing with financial or strategic investors
• Demonstrate sound corporate governance, viable business plans, and sustainable capital structures
• Additionally, a mid-cap or SME must meet the innovation criteria laid out below.

Projects eligible for InnovFin Corporate Research Equity financing must be located in one or more EU Member State and/or in one or more of the Horizon 2020 Associated Countries.

Projects also need to fall under the geographical scope of EFSI: a EU country or a cross-border project involving a EU country and extending to Enlargement countries(Western Balkans, Turkey), EU Eastern and Southern Neighbourhood, EEA/EFTA (Norway, Switzerland, Liechtenstein), Overseas Countries and Territories.

InnovFin Corporate Research Equity is also targeted towards small and medium-sized entreprises (SMEs) or mid-caps (less than 3 000 employees) which are fast-growing and/or innovation-driven.

To be considered innovative under Innovfin Corporate Research Equity, companies must comply with at least one of the following statements:

• Intention to use EIB growth financing under EFSI to invest in producing or developing products, processes and/or services that are innovative and where the business plan indicates a risk of technological or industrial failure, or a business risk
• The company’s registered office is in a science, technology or innovation park, technology cluster or technology incubator, in each case with activities relating to R&I
• The company has benefited from tax credit or tax exemption related to R&I investment in the last 24 months

For fast-growing companies with high turnover or employment rate

• Average annualised growth in turnover greater than 10% a year, over a three-year period
• Average annualised growth in full-time employees of at least 5% a year, over a three-year period (with one hundred or more employees at the beginning of the observation period)

For innovation-driven companies or companies with significant innovation potential

• Its certified accountant has highlighted in the latest financial statements R&I expenses/investment that are at least equal to 5% of its annual turnover
• The company undertakes to spend an amount at least equal to 80% of the EIB financing on R&I expenses/investment in the next 36 months as indicated in its business plan
• It has been formally awarded grants, loans or guarantees from European R&I support schemes (e.g. Horizon 2020 or FP7) or through their funding instruments (e.g. Joint Technology Initiatives, “Eurostars”) or through a national or regional research or innovation support scheme over the last 36 months
• It has been awarded an innovation prize over the last 24 months
• It has registered at least one patent in the last 24 months
• It has received an investment from a private-equity fund or from a business angel that is a member of a business angel network; or such a private equity fund or business angel is a shareholder of the company at the time of its application for the EIB loan