The €30m co-investment fund, advised by EIF, will support financing activities to early stage companies through co-investments helping to increase the capacity of approved business angels and other non-institutional investors investing in internationally oriented SMEs.
The European Angels Fund establishes co-investment framework agreements (CFAs) granting a predefined amount of equity for co-investments upfront to each business angel for future investments. All investment decisions will be taken by the business angels and their investments will be matched on a pari-passu basis, i.e. by the same amount by the European Angels Fund.
The volumes available in total under an individual CFA typically range between €250k and €5m. As of today, the program has been launched in seven countries, reached a facility volume of c. €320m and entered into agreements with more than 50 business angels for co-investment volumes of almost €150m.
As of today, business angels have drawn an amount of c. €30m for co-investments in more than 200 SMEs.
Once rolled-out, the initiative is expected to reach a portfolio of over 1,000 SME co-investments.