The European Investment Bank (EIB) has worked in tandem with other European Union (EU) institutions to foster European integration, promote the development of the EU, and support EU policies in over 160 countries worldwide.
Since its formation almost 65 years ago, the EIB has provided billions of euros in financing, including over €70 billion beyond the EU in the past 10 years (Source - August 2022).
About The European Investment Bank
The European Investment Bank was established in 1958 and is headquartered in Luxembourg. The EIB's annual lending neared €45 billion in the mid-2000s before jumping to €79 billion in 2009 as a temporary response to the financial crisis. Its total lending was €63.3 billion in 2019.
90% of the European Investment Bank’s capital is invested in EU-based companies. The EIB also works in over 135 non-EU states that receive around 10% of their total annual funding.
The European Investment Bank has over 3,000 staff members, most of whom work in Luxembourg. The EIB also has offices throughout the European Union and across regions around the world where it is active. (Source - August 2022).
Eligibility & Products Offered
The European Investment Bank offers a variety of loan and equity products, including venture debt. In order to qualify for venture debt financing, companies must be located in the European Union. The project should be in the commercial stage, although pre-commercial stage companies may be accepted if the company develops technologies in areas of strategic importance to the EU.
The EIB’s venture debt terms are tailored to high-growth companies in R&D-driven industries, including biotechnology, vaccine and software development, and robotics.
An analysis of EIB’s past loans was done and found typical deal characteristics of
How to Apply
To apply, interested companies should contact the European Investment Bank’s headquarters or one of its regional offices. Contact information is listed on the corporate website (Source - August 2022).
Capchase vs. The European Investment Bank
In addition to financing using venture debt from European Investment Bank, founders and startups can work with Capchase. When compared to the European Investment Bank, Capchase’s funding model is designed to remove excess fees that can save clients up to 50% when compared to traditional venture debt providers (Source – June 2022).
It can be helpful to see the differences between Capchase and European Investment Bank side-by-side. This is especially true for key areas like speed to funding, flexibility, structure & fees, and value add.
Speed
Capchase
48 hours to underwrite (led by a tech-driven & highly responsive underwriting system)
European Investment Bank
Often an extended diligence process
Flexibility
Capchase
Highly Flexible: No traditional financial covenants on amounts financed
European Investment Bank
Highly flexible: No traditional financial covenants on amounts financed
Structure & Fees
Capchase
Transparent & Simple: No prepayment fees, closing fees, warrants, or hidden fees
European Investment Bank
May include terms around prepayment, expensive closing process, warrants, admin fees
Value Add
Capchase
A prescriptive funding plan
European Investment Bank
Discrete funding events
