EIF-Led Innovation Fund Receives First Contributions to Support Central and Eastern European Growth Companies

EIF-Led Innovation Fund Receives First Contributions to Support Central and Eastern European Growth Companies

(IN BRIEF) The European Investment Fund (EIF) has received its first contributions to the Three Seas Initiative (3SI) Innovation Fund from Poland’s BGK and the Czech Republic’s NRI, with each institution committing €20 million. This fund aims to raise €180 million initially, with a goal of mobilizing €1 billion to support growth-stage businesses in Central and Eastern Europe. The fund will invest in private equity, venture capital, and private credit funds, helping companies grow while fostering innovation and addressing climate action needs. The initiative builds on the successful Central Europe Fund of Funds (CEFoF) model and seeks to enhance EU integration and global competitiveness.

(PRESS RELEASE) LUXEMBOURG/WARSAWA/PRAHA, 1-Oct-2024 — /EuropaWire/ — Two major national promotional institutions, BGK of Poland and NRI of the Czech Republic, have become the first contributors to the European Investment Fund (EIF)-led Three Seas Initiative (3SI) Innovation Fund. These institutions have each committed €20 million to help support growth-stage companies across Central and Eastern Europe. The Czech Republic’s contribution was funded by the Ministry of Industry and Trade.

The EIF will match these contributions, which will pave the way for additional investments from other countries in the region, with the goal of raising €180 million. Ultimately, the fund aims to mobilize €1 billion to support private equity, venture capital, and private credit funds across countries between the Baltic, Black, and Adriatic seas. These investments are critical for businesses that have moved beyond the early stages of development but need additional capital to grow.

Roger Havenith, Deputy Chief Executive of the EIF, stated, “We are excited to welcome BGK and NRI as the first anchor investors in the 3SI Innovation Fund. This fund will provide a substantial boost to innovation, product development, and job creation across Central and Eastern Europe. The commitment of the national promotional banks signals a new era of economic cooperation in the EU, fostering competitiveness and sustainable growth.”

Strengthening EU Economic Integration and Global Competitiveness

The 3SI Innovation Fund builds on the successful model of the Central Europe Fund of Funds (CEFoF), which was launched by the EIF in 2017. CEFoF enabled countries such as Austria, the Czech Republic, Hungary, Slovenia, and Slovakia to raise €700 million to support small and medium-sized enterprises (SMEs) and small mid-cap companies in the region. The new 3SI Innovation Fund is expected to further enhance EU integration and contribute to Europe’s global competitiveness by investing in high-growth companies.

Mirosław Czekaj, President of the Management Board of BGK, emphasized the importance of the initiative: “This fund offers an opportunity for Polish companies to access alternative funding sources, fostering innovation and increasing employment and economic competitiveness.”

NRI’s CEO, Martin Potůček, highlighted the positive experiences from previous EIF-backed initiatives: “Our success with the Central European Fund of Funds encouraged us to participate in the 3SI Innovation Fund. We expect it will similarly benefit the Czech start-up ecosystem and SMEs.”

Fostering Sustainable Economic Growth

The 3SI Innovation Fund is not just about economic growth—it also aims to address the urgent need for climate action. The fund will focus on high-potential sectors driving both technological advancements and environmental sustainability, including clean energy and green technologies. By pooling resources and spreading investments across a wide range of ventures, the fund mitigates risk while amplifying the positive impact on the region’s economy.

By supporting companies that are developing climate-friendly solutions, the 3SI Innovation Fund will help advance global sustainability goals, drive job creation, and increase productivity, positioning the region’s economies to remain resilient and competitive in a rapidly evolving global market.

Key Contributors:

• BGK (Polish development bank)
• NRI (Czech national promotional institution)
• European Investment Fund (EIF)
• Ministry of Industry and Trade of the Czech Republic

The EIF-led Three Seas Initiative Innovation Fund is set to play a transformative role in fueling sustainable growth and innovation across Central and Eastern Europe, with the potential to significantly enhance the region’s economic future.

Background information

The European Investment Fund (EIF):

The EIF is part of the European Investment Bank Group (EIB) Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

Bank Gospodarstwa Krajowego (BGK):

BGK is a Polish development bank, the only such institution in Poland. BGK supports the sustainable social and economic development of the country. Its activities influence job creation, housing construction, infrastructure development and air quality improvement. The bank cares about future generations – it builds social capital, develops entrepreneurship and provides responsible financing. It is present in every region of Poland, as well as abroad – it has representative offices in Brussels and Frankfurt am Main. The bank is involved in the implementation of European Funds in Poland, as well as products financed by the National Reconstruction Plan. BGK supports exports and foreign expansion of Polish companies. Through cooperation with business, the public sector and financial institutions, it responds to economic needs and undertakes a range of initiatives promoting sustainable development.

National Development Investment (Národní rozvojová investiční / NRI):

NRI is a subsidiary of the Czech National Development Bank (Národní rozvojová banka / NRB). NRI is focused to implement equity and quasi-equity financial instruments from public resources, in model of direct investments or fund of funds. Main areas of investments are venture capital, private equity and urban development.

Media Contacts:

EIB Group:

Luxembourg: Tibor Jona | t.jona@eib.org | Tel.: +352 691 287 052

Poland: Gabriela Baczyńska | g.baczynska@eib.org | Tel.: +48 502 355 634

Czech Republic: Katarina Karmazinova | k.karmazinova@ext.eib.org | Tel.: +420 730 156 873

Website: www.eif.org  | www.eib.org/press  | Press Office: +352 4379 21000 | press@eib.org

NRB / NRI:
Klára Vaníčková
Tel.: +420 775 292 663
E-mail: tiskovecentrum@nrb.cz

BGK:
Anna Czyż
Mobile: +48 609 220 208
E-mail: Anna.czyz@bgk.pl

SOURCE: European Investment Fund