Ark Kapital’s EIF guarantee to support sustainability, innovation, and digitalisation-driven enterprises

Ark Kapital’s EIF guarantee to support sustainability, innovation, and digitalisation-driven enterprises

(IN BRIEF) Ark Kapital, a tech-focused lender, has secured a portfolio guarantee from the European Investment Fund (EIF) to improve access to finance for high-tech SMEs. The guarantee enables Ark Kapital to offer over €146 million in new financing across sustainability, innovation and digitalisation, skills and education sectors. Under the guarantee, Ark Kapital will support innovation and digitalisation-driven enterprises, companies in the skills, education, and training sectors, and ICT solutions that support the green transformation of the European economy. The deal will enable Ark Kapital to offer better lending conditions to its clients, including reduced interest rates.

(PRESS RELEASE) LUXEMBOURG, 18-Apr-2023 — /EuropaWire/ — The European Investment Fund (EIF), part of the European Investment Bank Group and established to support Europe’s micro, small and medium-sized enterprises (SMEs), announces that it has granted Ark Kapital, the tech-focused lender, a portfolio guarantee under the InvestEU programme to enhance financing options for high-tech small and medium-sized enterprises (SMEs). With the EIF’s backing, Ark Kapital will offer over €146 million in new financing across three thematic areas, including sustainability, innovation and digitalisation, as well as skills and education. The guarantee will enable Ark Kapital to offer better lending conditions, including reduced interest rates, to its clients.

Paolo Gentiloni, Commissioner for Economy, said: “The InvestEU programme is playing a significant role in providing the necessary funding to support high-tech small and medium-sized businesses across Europe. Access to finance is critical for SMEs to make a positive impact in the areas of sustainability, innovation and education and I’m delighted that today’s agreement will benefit such companies in Sweden, Denmark and Germany”.

Under the Innovation and Digitalisation Guarantee of the InvestEU programme, Ark Kapital will support innovation and digitalisation-driven enterprises by providing better access to finance for high-growth tech companies, as well as supporting the adoption of digital technologies and digital transformation of businesses.

EIF Chief Executive Marjut Falkstedt commented: “The thematic financing supported by the InvestEU guarantee helps bring targeted support to those parts of the economy that need it. The EU priorities of live-long learning, digitalisation and the quest for sustainability will only grow in relevance in our changing economies, making these guarantees an important support mechanism for companies. Ark Kapital is a longstanding partner of ours and we are happy to continue our journey together to the benefit of Swedish, Danish, Finnish and German SMEs.’’

The InvestEU Skills and Education Guarantee will enable Ark Kapital to enhance access to finance for companies in the skills, education, and training sectors, including those that provide ancillary services with a focus on educational technology (EdTech).

Lastly, the InvestEU Sustainability Guarantee will allow Ark Kapital to finance ICT solutions that aim to support the green transformation of the European economy and contribute to the EU’s policy goals for decarbonisation.

“At Ark Kapital, we are proud to continue our partnership with the EIF to provide targeted financial support and better terms to European tech companies. As we navigate the changing economic landscape, it is clear that innovation across learning, digitalisation, and sustainability will only become more important. This agreement is another step towards ensuring the success and growth of the next generation of tech enterprises in Sweden, Denmark, and Germany.” said Ark Kapital Co-founder Axel Bruzelius.

This EIF portfolio guarantee is a significant milestone for Ark Kapital and reaffirms its commitment to supporting innovative, tech-driven SMEs and contributing to the green transition of the European economy.

Background information

The European Investment Fund (EIF): The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union 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 the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget 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.

Founded in 2021 by a team of dedicated experts in AI, Fintech and Lending, Ark Kapital uses its proprietary data engine AIM to provide financing to a market segment underserved by regular banks. Ark Kapital aids fast growing tech companies active in the European market in order to pave the way for the next new generation of technological innovation.

Press Contacts

EIB Group: Tim Smit, Tel: +352 691286423, t.smit@eib.org

European Commission: Flora Matthaes, Tel: +32 229 83951, flora.matthaes@ec.europa.eu

Ark Kapital: Fredrik Westin, Tel: +46 73 543 51 08, fredrik.westin@arkkapital.com

SOURCE: European Investment Fund