ECU 180 million to go to new high-tech SMEs thanks to I-TEC
Technologically innovative small and medium-sized enterprises (SMEs) in the European Union will have access to over ECU 180 million in venture capital funds over the next three years thanks to an initiative launched by the European Commission. Speaking at a conference on "Innovation and Creation of New Businesses and Jobs", held in Paris on 9 December 1997, Mrs. Edith Cresson, Commissioner for research, innovation, education and youth, announced the decision by nine venture capital fund managers to participate in the Commission's I-TEC pilot scheme. I-TEC was launched in July 1997 at the initiative of Mrs. Cresson. It is implemented by the Commission's INNOVATION programme, in collaboration with the European Investment Fund (EIF). The aim of the scheme is to increase the venture capital available in Europe for young technologically innovative companies by helping to build, within venture capital fund managements, a lasting capability to appraise and manage this kind of investment. The Commission's support is conditional on each fund making an effort to bring in new capital, and to dedicate at least 25% of it to early stage investment in technologically innovative SMEs. The first nine contracts with venture capital funds under the I-TEC scheme were signed, at the Paris meeting, by Mr. Robert Verrue, Director-General for telecommunications, information market and exploitation of research in the European Commission. The nine funds selected have, in total, agreed to devote over ECU 180 million to early stage investment in high-tech SMEs over the next three years. It is expected that other venture capital funds will join the scheme in the coming months. The first nine participating funds are: - Sofinnova Capital II - Paris, France; - Horizonte Austria Technology Fund - Vienna, Austria; - Alta-Berkeley V - London, United Kingdom; - Technostart II - Stuttgart, Germany; - Prelude Trust - Cambridge, United Kingdom; - Strategic European Technologies - Munich, Germany; - MTI 3 - Watford, United Kingdom; - Phoenix Venture Fonds - Munich, Germany; - Capricorn Venture Fund - Leuven, Belgium.