ICT contribution to pilot for co–investments by business angels in innovative ICT firms

This is a contribution from the ICT in LEIT to a pilot scheme that will co-finance investments by business angels in innovative SMEs and small midcaps that are aiming to commercialise new ICT-related products and services. Potential co-investors with business angels can include family offices and equity crowd-funders. The domains of photonics, microelectronics, microsystems and robotics, and also the ICT-related creative industries, will receive particular attention. The scheme might operate through a fund set up as a dedicated investment vehicle. Co-financed investments, made as a rule on the basis of an equal sharing of risks and rewards, will take the form of equity and, potentially, other forms of risk capital. ICT-related investments should represent at least 50% of the total investments made. The Commission will incentivise the entity entrusted with implementing the pilot to make a particular effort, including targeted awareness-raising, to ensure that a significantly higher proportion of investments are ICT-related.

Expected impact:

Development of co-investments and cross-border investments by business angels, and improved access to risk finance by innovative ICT firms. Indicators and targets will be set during negotiations with the entrusted entity who may potentially implement the pilot scheme.

Indicative timetable:

This instrument is likely to be available in 2015.

Selection procedure:

Under discussion with the entity who may be entrusted with implementing the pilot scheme.