Part of the COSME budget is dedicated to investments in risk-capital funds that provide venture capital and mezzanine finance to expansion and growth-stage SMEs, in particular those operating across borders.
Fund managers working on a commercial basis will ensure that investments are focused on SMEs with the greatest growth potential.
It is expected that some 300 firms will receive equity financing through the program, with overall investment reaching up to €2.54 billion. It is also anticipated that further finance will be attracted through co-investments from other public and private sources.
The COSME equity financial instrument builds on the experience of the equity financial instrument under the Competitiveness and Innovation Framework Programme (CIP) that ran from 2007 to 2013. From 2007 to date, the equity financing facility under CIP (the so-called GIF facility) has mobilised more than €2.3 billion in equity investments.
A call for expression of interest is open until 30 September 2020. Financial intermediaries wishing to apply can find more information on the EIF website.