The European Investment Fund (EIF), backed by an EU budget guarantee from the new InvestEU programme contributed €25 million to the €100 million raised by women-founded The Green Generation Fund. KfW Capital provided €10 million. The Green Generation Fund invests exclusively in sustainable startups that make significant progress in CO2avoidance, the circular economy, climate and resource protection, health promotion and biodiversity. The aim is to strengthen the new food tech and green tech industries and to contribute to CO2 reduction in the agricultural and food sectors.
Funding is provided, for example, for plant protein extraction and innovations in fermentation and cell cultivation. In addition, the reduction of shelf life substances in the food industry as well as more sustainable packaging, supply chains, carbon capture solutions and green tech software are being considered. The EIF's investment is one of the first in Germany under the new InvestEU programme.
Paolo Gentiloni said: “Securing the green transition will require sustained investment. That is where InvestEU can play a crucial role. I am delighted that the new InvestEU programme is backing this EIF investment to support startups specialising in green technologies. This financing agreement will enable them to access the finance they need to invest in innovation, expansion and job creation. I am looking forward to seeing many other innovators follow suit.”
The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budgetary guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment. A press release is available online.
Source: European Commission Press Room