EIB President Werner Hoyer calls on Finnish companies to take up new InvestEU funding opportunities

InvestEU aims to trigger €372 billion in private and public investments in 2021-2027, enabling long-term funding for diverse companies and research projects. Backed by an EU budget guarantee of €26.2 billion, InvestEU's investments are implemented by the EIB Group (75%) and national promotional banks and other international financial institutions (25%).

InvestEU follows the groundbreaking work of the European Fund for Strategic Investments (EFSI), which mobilised over €500 billion in 2015-2020 mainly from private sector investors eager to participate in projects partly funded with public or EU money.

"The EIB never finances a project alone, so our key job is to crowd in the private sector investors as well as other institutions and public financiers in order to achieve the innovation and investment goals that we have," said Hoyer at the InvestEU launch, recalling how the idea of triggering hundreds of billions of euros from private sector investors under EFSI was at first dismissed as 'voodoo economics'.

Speeding up innovation requires more risk-taking and support for startups

Hoyer also made a strong case for the importance of investing in startups, recounting a recent success story that took him by surprise.

"A few years ago, we were asked to invest in a small startup from the University of Mainz that was developing mRNA, a new technology for cancer treatment that I had never heard of. When Covid-19 broke out, they said it might also be useful for fighting this disease."

The unknown startup became BioNTech – by now a multi-billion euro company.

"Of course, we also have cases where the research has not led anywhere. But if you want to explore new innovative fields, you must run the risks. This is easier with a broad portfolio where you can balance out the risks, and when you have the strong backing of the European Union."

EU financing brings significant benefits to Finland

EIB makes close to 800 financing operations worldwide annually, including approximately 20 operations in Finland. One of the financial products popular in Finland is venture debt, a loan for fast-growing innovative companies. Recent Finnish recipients of the EIB's venture debt financing include Varjo, a manufacturer of virtual reality, augmented reality and mixed reality headsets, and IQM, a leading quantum computing hardware company.

"Under EFSI, we financed 40 projects for about €2 billion in total, and Finland was seventh among the EU member states in terms of EFSI utilisation relative to the GDP. Then came the European Guarantee Fund (EGF) as part of the EU's covid response. Finland contributed €371 million to the EGF but received financing guaranteed by EGF for around €1.2 billion, which was an excellent result," said Jaani Pietikäinen, Head of EIB's office in Finland.

"EIB and Business Finland constantly discuss how Finnish companies can benefit from the various funding opportunities available in close cooperation with the Ministry of Economic Affairs and Employment. Finnvera and Nordic Investment Bank are also involved in these discussions."

Business Finland and InvestEU Advisory Hub support companies

Business Finland's EU Funding Advisory Service plays an important role in providing information to companies about the financing available from InvestEU and other EU programmes. InvestEU has simplified access to funding by combining EFSI and 13 other EU financial instruments into one and creating the InvestEU Advisory Hub, a one-stop shop to help companies prepare their projects and applications. In addition, the new InvestEU Portal offers a database to match projects with potential investors worldwide.

InvestEU funding applications should fit into one or more of the policy areas that reflect the EU's key priorities: sustainable infrastructure, research, innovation and digitalisation, small and medium-sized businesses, and social investment and skills.

"InvestEU continues the good work achieved under EFSI and EGF, and the funding application process for the end customer remains essentially the same despite the changes. The new loan guarantee arrangements under InvestEU enable EIB to target slightly smaller and higher-risk projects," said Pietikäinen.

Green transition is more urgent than ever

At least 30% of InvestEU funding will be directed to climate change mitigation and adaptation projects. According to Hoyer, the EU needs innovative action, including equal partnerships with African and Latin American countries, to achieve its energy and climate goals. Africa's electricity generation will have to quadruple during the next 15-20 years in order to meet growing demand, which could also provide a crucial source of green energy for the EU.

"The EU has a competitive edge in green tech development, and we should use this opportunity without delay. By 2025, 50% of EIB's business must be related to the climate, environment or biodiversity. By 2030, we want to have triggered climate investments of €1 trillion worldwide," stated Hoyer.

"It's a huge challenge, but we have to act now. Time is running out, and the war in Ukraine makes the digital and green transitions even more urgent. We need to make our energy systems more independent from Russian imports."

Help available for mapping EU funding opportunities

The Finnish national level EU funding advisory service offers free general-level information and advice on EU funding programs and instruments. The advisory service is offered to Finnish stakeholders interested in EU funding.