Introduction to EIF space activities

Infrastructure lifecycle support

Bjorn Tremmerie, Head of Technology Investments

28.03.2022, Prague
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Our role We are an EU body

dedicated to improving
access to finance for small
businesses.
Entrepreneurs are the
backbone of the European
economy and a key focal
point for EU policy.
Our unique approach 3

Our unique approach

We design financial instruments that share risks with our partners
multiplying public resources and increasing the supply of finance

Our resources Our approach Our partners Small businesses

• European Commission
• European Investment Bank
• Local authorities &
National Promotional
Institutions
• Other investors*
Equity 600+
We design Funds More than
€5
risk sharing
and deploy
€1
public
Support
financial
EU policy
instruments
goals
investment
and lending to
resources that target
Foster long small
funding gaps
term market
sustainability
Debt
risk sharing
400+
Banks
businesses

5x leverage of public resources**

*Includes EIF’s own resources and other external resources including private investors.
**On aggregate based on 2020 transactions. Depending on the instrument and the transaction, the leverage achieved can range from 4x to 40x.
Source: EIF Annual Report 2020.
Our unique approach 4

Benefits of our approach

We multiply
resources
We design financial
instruments that share risk
with banks and funds and, as a
result multiply resources
We target
funding gaps
We help our investors support
new segments and target
specific gaps at a European,
national and local level
We nurture
ecosystems
We partner with established
and new providers of equity
and debt financing, often
taking a cornerstone position
when required

Increasing the
Increasing number
Increasing the financing options
overall supply of especially where of local partners
finance for small markets don’t lending to and
businesses investing in small
work well
businesses
Our unique approach 5

Our thematic focus

In our continued commitment to supporting SMEs across Europe and
beyond, we are aligned with InvestEU and the Paris Agreement

1 2 3 4

Competitiveness, Innovation Social impact, Sustainability

growth and skills and and green
cohesion human capital transformation

Supporting SME growth Across crucial sectors Promoting social Stimulating sustainable
& expansion as well as such as Space, Life inclusion, diversity industries, products and
internationalisation. Sciences & wellbeing. services as well as energy
and Health. efficiency and renewable
Helping to build the Nurturing impact & energy endeavours.
financial ecosystem Harnessing disruptive focussing on skills &
further. technologies and fostering education as well as
digital transformation. cultural & creative sectors.
Our solutions 6

Our products help small

businesses at every stage of
development
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EIF‘s activityonSpace
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EU’s Space market – where EIF can help

Reduce funding gap Space finance today Professionalize the

funding landscape by
by supplying the
Funding SMEs and selecting best teams and
space market with
infrastructure mostly through encourage inclusion of
deserved capital
grants prior to new investment themes
commercialisation
Trigger catalytic effect Contribute to advisory
The industry will grow from
towards attracting services, capacity building
currently $ 340bn to $ 1trn over
private investment
the next decades

European private investors &

Amplify the signaling investees are still broadly Position Europe as a
effect for the missing world Space Hub where
investment readiness of SMEs & Mid-Caps
space technology Space is increasingly on the remain, grow and
investments agenda of corporates and investors specialize
National and Regional
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Experience with Space Innovfin pilot

Highlights Geographical GP distribution
ISEP added value in funding ecosystem
Germany Luxembourg
• Targeting Space investment 16% 33%
pockets thanks to combination
with H2020 tech funding.
• Focus towards Upstream and Italy
Downstream Space 31%

• Catalyzing greater volumes in Finland

20%
high risk and upstream
segments.
• 15+ applications received, of € 300 m expected investments in Space
which 5 financed.
• Backing first-time teams and
5x – 6x
TT funds. ~ 50
• Generalist and specialized Primo Space, Orbital Ventures, SMEs
teams covering both early UTUM, Vsquared, ICEYE
stage and scale-ups
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3 approaches to supporting Space Tech VCs

Deep Tech Funds Specialised Funds Co-investments

Funds investing in various new Funds investing with a

technologies w/o distinct distinct focus in specific
specialization and Funds technologies.
commercializing R&D and
connected to a research 10-20% of EIF’s current
organization (TT/PoC) activity in Strategic Tech
and heavily dependent on
70-80% of EIF’s current specific mandates.
activity in Strategic Digital
Tech. New Space investors starting
to emerge as a result to
dedicated interventions.
Funds pursuing investments
outside the strategy of main the
fund (i.e. large rounds)
A financing modality expected
to grow particularly for high
resource intensive industries
like Space.

Market Firepower
Market Market Market and high risk
Builder
Builder Catalyst Builder opportunities
Only
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ICEYE co-investment
Case study

➢ Iceye is a leader and first mover in synthetic-aperture radar

(“SAR”) technology for microsatellites
➢ EIF investment into OTB Fund Cooperatief U.A., (Poland) in
2019 out of EFSI SW1 (EUR 30m)
➢ A co-investment with OTB Fund into ICEYE OY of c. EUR 20m
took the form of the acquisition of Series C preferred stocks in
an Upstream company.
➢ Investment rationale: company seeking very large round (EUR
80), for which European VCs lacked the firepower to support.
➢ EIF co-investment in ICEYE: EUR 12m out of InnovFin Space
and EUR 8 m in reserve for follow-on. Expected larger rounds
to be drawn at later stage.
➢ As of today Swiss satellites launched in December 2020, the
company closed contracts and plan to launch another 2
satellites next year.
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What’s new at EIF on Space?

InvestEU & Space’s programmes Signature of MoU w/ ESA Cooperation EIF-ESA-EUSPA-EC
funding opportunities

Build on the success of

Leverage ESA’s technical Capacity building activities to
Innovfin pilot increase private investments
expertise to identify lead
technologies
IEU & thematic top-ups Access to finance, networks and
(Cassini) will increase
Identify Champions and “ESA market promotion
investment capacity in Space
Rising Stars”
VC sector Advisory and capacity building
Foster match-making between coordination
Focus on European SMEs
investors and companies
involved in different space
sectors
Capacity Building support
(workshops, studies…)
Capacity Building to support
product
deployment
Firepower
Market Market and high risk
Builder Builder opportunities