27.09.2018 | EIB Conference | EIB Advisory Services: Growth Capital & Innovation Finance, Francisco Alves da Silva

1. Growth Capital & Innovation Finance
Francisco Alves da Silva
European Investment Bank

2. 2
New equity and quasi-equity products
Venture Debt
SME/MidCaps
Corporate Risk
Sharing
Equity Co-
Investments
Debt product absorbing
equity risk
EUR 7.5- EUR 50m
Improves IRR for sponsors
and management
MidCaps/Large Corporates
Debt product absorbing
equity risk
EUR 7.5- EUR 60 + m
Off-balance sheet risk
sharing structures for
corporate R&D
SME/MidCaps
Equity co-investments
EUR 7.5- EUR25m
Co-investments through
CVCs, NPBs or other third
parties

3. 3
EIB Venture Debt operations at a glance
Invested in
70
companies
€ 3.0bn
R&D projectsPortfolio
€ 1.5bn More than 6,500
R&D jobs created
and supported
through our
investments in the
last 12 months
Impact
30 investment professionals backed by more than 100 engineers, lawyers
and risk managers
Reviewed
2,000
cases p.a.

4. 4
Target sectors
INDUSTRIAL
ICT AND TECHNOLOGY
LIFE SCIENCES AND BIOTECHNOLOGY
Biotechnology and
drug development
Medical technologies
Medical services and
other
Software ICT equipment IT services
Industrial innovation &
manufacturing
Cleantech Chemicals

5. 5
Target companies in terms of lifecycle
Product development
/ Venture
Growth / Expansion Late Growth / MaturityCommercialisation /
Ramp-up
Early
commercialisation
Product
development
Ramp-up
Early growth and
sales
Global sales
maturity
Late growth and
internationalisation
1 2 3 4

6. 6
Cash flows under EIB Venture Debt financing vs other market options
Disbursement
Companycashflows
Year 1
Market venture debt:
• Small ticket (usually EUR 1-3m)
• No commitment period
• Monthly amortization
• Usually 3 years maturity
• Security / warrants
EIB venture debt:
• Large tickets (EUR 7.5-50m)
• Long commitment period (3yrs)
• Bullet repayment (5yrs)
• Phased disbursements (with
milestones)
• Warrants/upside
• Crowd-in of 3rd party funding due to
50% restriction
• Direct transfer of knowledge from EIB
to clients
Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Repayment /
Interest
Commitment
Companycashflows
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Disbursement
Repayment /
Interest
Unserved period

7. 7
What do we look for when assessing prospective innovative companies?
Stable and experienced management
team
Sustainable capital structure
Professional corporate governance
and code of conduct
Raised equity in the past (series B, C
rounds)
Sustainable business
model, business plan
and strategy
providing credible
growth perspectives

8. 8
Application process
Approval: Stage I
(1-2 months)
Approval: Stage II
(1-3 months)
Approval: Stage III
(1-2 months)
Negot. & Closing
(1-3 months)
Company to submit investment memo presentation:
Business description, financials
Ownership and 3rd party financing
Corporate governance
Management, employees, etc.
Due diligence meeting
Due diligence pacakge
Meeting with management and key people
Consultants / Any other relevant information
2nd and final Management Committee approval
Term sheet to be in agreed form
Detailed analysis package prepared
External legal counsel to be appointed
Contract closing & CPs
Monitoring
Investor Memo
Non-Disclosure Agreement
KYC checks
Fee letter
Member State Opinion
Due diligence questionnaire
Draft Term Sheet
Final Note
Draft contract
Final contract
CP checks
Disbursement request
Monitoring & reporting
DocumentsProcess Steps

9. 9
EIB Venture Debt portfolio (sample)
Software
Cleantech
Fiber optics
Fintech
Other tech
Med tech

10. 10
Case study: EUR 15m venture debt financing to Skeleton
• Europe’s leading producer of ultracapacitors and ultracapacitor-based energy
storage solutions using patented nanoporous graphene material.
• As a technology spin-off from the University of Tartu, Estonia, the Company
developed an unique technology that allows energy storage in ultracapacitors
with substantial efficiency, unlocking countless applications e-mobility,
industrial systems andspace industry.
• Following a number of equity funding rounds from private venture capital
investors and a grant from the European Commission, Skeleton set-up its
initial manufacturing facilities
• In 2016, Skeleton approached EIB to seek growth financing in order to scale-up
and support further R&D development.
Investment rationale:
• Opportunity to finance an Estonian
technological leader with significant
potential, operating in a fast-growing
market underpinned by strong
fundamentals.
• EIB strong value-added and significant
jobs creations foreseen in Estonia and in
Saxony, a cohesion region.
Skeleton Technologies
Ultracapacitors
Amount: EUR 15m
Sector: Engineering
Country: Estonia
Signed: Feb 2017

11. 11
Case study: EUR 35m venture debt financing to Magforce
• Early commercial stage medical device company in the field of
nanomedicine specialised in the development of cancer treatments:
addresses medical areas where current treatments are very expensive and
uncomfortable or unsafe for patients.
• MagForce’s core technology, NanoTherm therapy, has been proven to be
effective in the treatment of brain tumours and prostate cancer, has
significantly less side effects in comparison to the standard treatment
methods currently used, displays a high safety profile and a high degree of
efficacy proven in prior clinical studies.
• In addition to efficacy, the technology developed by MagForce significantly
improves the quality of life of prostate and brain tumor cancer patients.
• The EIB financing provided growth capital needed to further develop the
technology and to support clinical studies ahead of commercialization
Investment rationale:
• High added-value transaction that will
enable MagForce to accelerate its R&D
activities for its products, potentially
improving the quality of life of thousands
of patients.
• Milestone-based disbursement structure,
which significantly mitigates the risks taken
by EIB.
Magforce
Cancer treatment
Amount: EUR 35m
Sector: Life sciences
Country: Germany
Signed: Aug 2017

12. 12
Case study: EUR 10m venture debt financing to Science4you
• Science4you develops, produces and sells educational toys to stimulate
children’s scientific knowledge through scientific experiments and didactic toys
based on the STEM concept (Science, Technology, Engineering and Math).
• The Company has a solid client base which includes the largest retailers across
Europe and the US.
• Science4you started in 2008 as an academic endeavor; however following
strong commercial demand, the Company shifted to a commercial approach
and raised EUR 8m in equity in 2015 for the initial growth phase.
• In 2017, Science4you reached out to the EIB for financing in order to accelerate
growth through R&D and to support further international expansion.
Science4you
Educational toys
Amount: EUR 10m
Sector: Manufacturing
Country: Portugal
Signed: Nov 2017
Investment rationale:
• Complement to other sources of
financing.
• Long-term financing to enable
Science4you to accelerate its growth.
• Limiting further dilution of existing
shareholders.

13. 13
Case study: EUR 30m venture debt financing to Electro Power Systems
• Innovative start-up specialized in the development and implementation of
hybrid electricity generation and energy storage and stabilization
solutions to on-grid and off-grid markets.
• Technology leader with 17 patent families and a robust and certified
technology.
• The shift to renewable energy generation in Europe and the US is leading to
constant demand increase in grid stabilization support systems. Additionally
the market potential for microgrids in emerging and developing countries is
large and untapped.
• Following the EIB financing, EPS drew the attention of large strategic
investors, resulting in a significant investment of Engie into EPS.
Electro Power Systems
Grid energy storage systems
Amount: EUR 30m
Sector: Engineering
Country: Italy
Signed: Apr 2017
Investment rationale:
• Provision of an alternative for equity and
mezzanine funding coming from either main
industrial operators or hedge funds, thereby
retaining the company’s operations
independent.
• Early development stage of the company
with corresponding remuneration profile
• Milestone based disbursements resulting in
downside protection

14. 14
Pipeline of operations under
appraisal is above € 950m with
additional leads of over € 800m
-
500
1,000
1,500
EUR m
Signed
Under appraisal
Strong pipeline & portfolio build-up

15. 15
Summary
Large tickets – from EUR 7.5m up to EUR 50m
Longer tenors – 5-year terms with 2-3 availability periods
Non dilutive
Reliable investor – long-term strategic view
Quality stamp – detailed due diligence
Hands-off approach – no direct involvement in daily management

16. 16
Contact details
www.eib.org/venture-debt
Francisco Alves da Silva
Investment Officer
Growth Capital & Innovation Finance
Phone: (+352) 4379 82783
Fax: (+352) 4379 67397
email: f.alvesdasilva@eib.org
European Investment Bank
98-100, boulevard Konrad Adenauer
L-2950 Luxembourg