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Access to risk finance

Especially compared to the US the financing situation in Europe for investments into research and innovation (R&I) proves difficult for companies. In the context of the financial crisis this situation has worsened even more, especially for start-ups, innovative SMEs and medium sized enterprises with a high potential for growth. The European Commission sees a great deficit on the market there. Risks, which are linked to innovations, cannot be supported by these players.

With the allocation of guarantees for financial intermediaries, risk- and venture capital as well as further instruments, enterprises and other beneficiaries shall gain easier access to risk finance. Further resources are channeled to the risk capital market in order to facilitate the transition between the concept, development and demonstration of new products and services up to their marketability and to raise the willingness of the private sector to invest in R&I.

Considering this background, the part "Risk Finance for R&I" has been widened and given a separate slot of the programme Horizon 2020. Beside a credit facility there will then also be a facility for venture capital. Together, these instruments have been allocated a total budget of EUR 2.8 billion.