Presentation about EFSI by Pascal Lagarde of Bpifrance on 31 March 2016 at Innovative Enterprise conference in The Hague

1. The EU’s investment programme for research &innovation
(InnovFin) and their role for long term investment in innovation
Bpifrance’s Experience
31 MARCH – THE HAGUE – THE NETHERLANDS
EFSI

2. 1
Bpifrance in short
A strong partner of EU Innovation
programs
Horizon 2020 national contact point for
SMEs & Risk finance
EUROSTARS
6 activities
• Guarantees
• Loans
• Innovation
• Funds of funds
• Small cap investment
• Mid/large cap investment
90%
of decisions taken
at regional level
4 values
to Serve the Future: Simple,
Accessible, Optimistic and
Proactive
• A public-sector bank
created in 2012
• A full-service bank
supervised by the ECB
• Largest promotional bank in France
• Significant know-how of the French SME
market
• Strong experience in providing financing to
innovative SMEs
2,200 employees 42regional offices

3. 2
Bpifrance in 2014
12.5 Bn€
of financing
5.9 Bn€ of short term loans
3.8 Bn€ of classic loans & cofinancing
1.7 Bn€ of development lending
1.1 Bn€ of innovation financing
7.8 Bn€
of guaranteed loans
1.4 Bn€
of equity
127 M€ directly invested in venture capital
159 M€ directly invested in SMEs
516 M€ directly invested in Midcaps and
large companies
641 M€ subscribed into partner funds
3.7 Bn€ risks taken*
*Partner Banks’ loans are partially guaranteed from 40%
up to 70%, with the support of most French Regions

4. 3
• Bpifrance has undertaken substantial marketing efforts to promote the
InnovFin facility in France.
• Very good track record in terms of utilization under the RSI/InnovFin
facility.
•
• Thanks to InnovFin, Bpifrance can provide loans on better terms to innovative SMEs
& small Mid-caps.
•
• Bpifrance takes into account InnovFin and its costs in its pricing calculation for each
loan.
•
• Enhanced access to finance is thus provided to innovative companies in
France.
Bpifrance & InnovFin

5. 4
Innovation products before EU support
AR / PTZI
Growth Loan
GRANT
Risk level
Sales
Investments
time
5M€
3M€
500k€
Amount

6. 5
With EU support (RSI & InnovFin)
AR / PTZI
Seed
Loan
Growth Loan
GRANT
Risk level
Sales
Investments
time
Innovation
loan
5M€
3M€
500k€
Amount

7. 6
• 1st transaction approved by EIF under the Juncker plan in May 2015
•
• Supported through the SME window of the Juncker Plan (frontloading
procedure)
•
• A portfolio of EUR 420m of loans to innovative SMEs and Small Midcaps
guaranteed by EIF
• Guarantee covering two recent products:
•- The EIF Innovation Loan (320M€ with a 50% guarantee from EIF)
•- The EIF Seed Investment Loan (100M€ with a 40% guarantee)
Bpifrance’s InnovFin Agreement

8. 7
The EIF Innovation Loan (320M€)
• Launch: February 2014 through the Risk Sharing Initiative (RSI)
• Beneficiaries : SMEs and Small Midcaps (up to 500 employees)
• Aim: to finance the industrial launch of innovation.
• Amount : up to EUR 5m
• Very attractive conditions : no collateral required, 2 years grace period
The EIF seed investment loan (100M€)
• Launch: 2015
• Beneficiaries : targets innovative start-ups of less than 5 years which access to new equity funds from
investors
• Aim: to help innovative start-ups in the negotiation of their valorization with identified investors (Loan
concomitant to the fund raising)
• Amount: up to EUR 500k€ (1€ of debt for 2€ in equity received)
Bpifrance’s InnovFin Agreement

9. 8
• Bpifrance has efficiently rolled out the InnovFin facility,
leading to a smooth implementation and a very good utilization of
the product.
• As at February 2016 (after only 8 months), Bpifrance had provided:
• - EUR 200m (PI FEI product) = 62% of the portfolio
• - EUR 50m (PAi Start-up product) = 50% of the portfolio
• Thanks to InnovFin, Bpifrance has already supported more
than 700 innovative companies (Target = 1245 companies).
A very successful product

10. 9
• Strong pipeline of Bpifrance under the InnovFin facility
• Bpifrance is currently applying for an increase of its
InnovFin portfolio to continue financing innovative SMEs &
small Mid-caps at favorable conditions.
• An additional 1790 companies are expected to be included in
the InnovFin portfolio following this increase.
Next steps - increase

11. 10
• Provepharm is a French pharmaceutical
company dedicating in the development
and valorization of Drug Products world
wide
• Needed finance for : clinical studies
required by the FDA to get a marketing
authorization on the US market
• Localisation : Marseille
• Turnover : ~5M€
• Staff : 12
Recent EIF Innovation loans
Eligibility criteria:
R&I costs represent at least 10%
of its total operating costs
Loan Amount:
EUR 2 000 000

12. 11
• DEVISUBOX has developed innovative
wireless photo webcams specialized to
construction site monitoring.
Commercialization started in 2013.
• Needed finance for : starting to export
– targeted markets : US, Germany,
Emirates
• Localisation : Marseille
• Turnover : ~2M€
• Staff : 24
Recent EIF Innovation loans
Eligibility criteria:
Has been awarded grants, loans or
guarantees from an European or
national R&I support scheme
Loan Amount:
EUR 1 500 000

13. 12
• NETATMO is specialized in connected objects
and intelligent systems (Home camera with
face recognition, weather station for
smartphone etc.)
• Needed finance for : developing new
commercialization channels and
• investing in R&D in order to keep a competitive
edge
• Localisation : Boulogne
• Turnover : ~12M€
• Staff : 46
Recent EIF Innovation loans
Eligibility criteria:
Has been awarded grants, loans or
guarantees from an European or
national R&I support scheme
Loan Amount:
EUR 2 000 000

14. 13
• 1/ Process innovation should be clearly acknowledged as a key dimension
of innovation supported through InnovFin. Any loan financing an investment in
process innovation should therefore be eligible to InnovFin SMEG.
• 2/ Reporting requirement and fee structure of InnovFin Midcap (MCG- EIB)
should be better aligned to those of InnovFin SMEG.
• 3/ Bpifrance welcome the initiative to create a new uncapped Guarantee
for Unsecured Loans to RDI-intensive SMEs and Small Mid-caps – this
addresses a clear market gap.
• 4/ Bpifrance sees the Equity Investment Platform of the EFSI SME Window
as an opportunity to promote multilateral cooperation between NPBs and
VC cross-border investments.
Bpifrance’s proposals

15. 14