EIB Provides €20 Million Loan to Xnext for Food Safety and Sustainability Innovation

EIB Provides €20 Million Loan to Xnext for Food Safety and Sustainability Innovation

(IN BRIEF) The European Investment Bank (EIB) has extended a €20 million venture debt loan to Xnext, an Italian start-up specializing in X-ray inspection systems. The loan aims to bolster food safety, support innovation, and promote environmental sustainability. Xnext’s patented XSpectra technology detects contaminants in real-time during food processing, reducing contamination and resource waste. With EIB’s support, Xnext plans to expand its research and development efforts, take its technology to a global audience, and broaden its product catalog, with applications in the food, textile, and pharmaceutical industries. The loan is part of the European Commission’s InvestEU program, aligning with EIB’s mission to reduce waste and environmental impact while fostering economic development and job creation in Italy.

(PRESS RELEASE) LUXEMBOURG, 10-Nov-2023 — /EuropaWire/ — The main goals of the €20 million venture debt loan the European Investment Bank (EIB) has granted to Xnext are improving food safety and supporting innovation and environmental sustainability. Xnext, an Italian start-up, has patented a next generation X-ray inspection system aimed at reducing food contamination and waste of produce and resources. The Bank’s investment is supported by the European Commission’s InvestEU programme under the Venture Debt window, which provides venture capital to strengthen the competitiveness and growth of European small and medium-sized enterprises..

With the EIB’s venture debt financing, Xnext will be able to advance its research, development and innovation activities, taking the company’s revolutionary technology to a global audience. Backed by Neva, Banca Intesa’s venture capital arm, Xnext has developed state-of-the-art technology for quality control in the food processing sector, with further applications in the textile and pharmaceutical industries. Xnext’s technology offers superior detection of low-density foreign bodies, reducing the risk of product recalls and limiting the environmental impact caused by the waste of resources.

The EIB’s backing will also enable the Milan-based start-up to expand its market presence, create jobs and contribute to Italy’s economic development and innovation. According to the EIB’s estimates, the loan should help create some 70 highly specialised jobs in Italy.

“Xnext’s commitment to quality control is fully aligned with the EIB’s remit to reduce waste and environmental impacts. This operation is a concrete example of the EIB’s commitment to promoting revolutionary technology that benefits both society and the environment,” said EIB Vice-President Gelsomina Vigliotti.

“With financing from the EIB, we will be able to continue along our technological innovation path and maintain the technical competitive edge we currently have over competitors with XSpectra. We’ll also be able to broaden our product catalogue, designing next-generation inspection systems for applications in both the food and pharmaceutical sectors,” added Xnext CEO Bruno Garavelli.

The EIB’s venture debt programme provides support for innovative companies

The EIB offers a long-term venture debt product to address the unique funding needs of fast-growing innovative companies. Established in 2016, the EIB’s venture debt programme has so far invested around €6 billion in supporting more than 250 firms. A number of Italian companies have benefited from this financial product, including Blubrake, Diadem, D-Orbit, MotorK, and IRBM.

The venture debt financing structure includes bullet repayment and remuneration linked to the equity risk of the investees and complements existing venture capital financing.

Background information

European Investment Bank (EIB)

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2022, the EIB Group provided €45 billion in financing for projects in Italy.

InvestEU programme

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 to crowd in private investment for the European Union’s strategic 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.

Xnext

Xnext is the market leader in multi-spectral X-ray inspection systems for real-time quality control in industrial processes. Xnext has developed XSpectra®, an innovative inspection technology that improves food safety by detecting, directly on the production line, the presence of contaminants such as plastics, bone, cartilage, insects, wood and rubber, which cannot be detected by conventional inspection systems. Xnext launched XSpectra®  on the market in 2020. Within three years, the system had been installed by some of the biggest Italian and international food companies. In 2022, Xnext established a subsidiary in France. There are now 50 XSpectra® systems in operation in Italy, France, Slovakia and Germany, soon to be followed by installations in Japan, Israel and North America.

Media Contact:

Lorenzo Squintani
l.squintani@eib.org
+352437982528

Press Office

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SOURCE: European Investment Bank