Through the ICT Venture Capital Funds, Greece is making use of innovative financial engineering products to support investment. Financed with JEREMIE resources and set-up with the support of the European Investment Fund, the project invests in start-ups and businesses that are developing new information society services and applications. More than 40 start-ups have been funded to date and more than 320 jobs have been created.
ICT Venture Capital Funds – Supporting the Digital Economy in Greece
- 11 December 2015
The successful partnership between all the parties involved (the European Commission, the Managing Authorities, European Investment Fund and the VC fund managers) who worked and continue to work closely together resulted in delivering a highly innovative product that will have a lasting impact on the real economy of Greece and the Greek Venture Capital ecosystem.
The project is made up of four different venture capital (VC) funds providing seed and early stage financing for micro, small and medium-sized enterprises in the ICT sectors. The revolving nature of the investments ensures that unlike a traditional grant approach, the investments have a more sustainable and durable impact.
The involvement of private enterprise is crucial to the success of the investment. Firstly, 30 % of the funding comes from almost 40 private-sector investors. Secondly, the endorsement of private investors demonstrates that these are projects that are viable and that have a real potential for commercial success, and finally, the private investors often play a mentoring role for the companies that lack experience in business management.
Supporting innovation
The venture capital funds play a vital role in nurturing an entrepreneurial culture. Apart from the contribution to the current start-ups, the funds have been important in changing the local and national understanding of venture capital. The positive impact can also be seen in the involvement of prestigious and well-established investors who have invested additional money in projects funded in the first round of financing.
The ICT start-ups that have emerged cover a wide range of products and services. From an award-winning online platform for boat rentals and boating holidays (www.incrediblue.com) to innovative applications in the field of biotechnology, drug discovery and personalised medicines markets (www.e-nios.com).
Managers of the funds say that the quality of projects has improved exponentially as a result of the experience gained. Small companies aren’t just thinking at a national level anymore, they are taking a ‘think global – go global’ approach.
Total investment and EU funding
Total investment for the project “ICT Venture Capital Funds” was EUR 70 345 000, of which the EU’s European Regional Development Fund is contributing EUR 41 854 000 from the Sectoral Operational Programme “Digital Convergence” and the Regional Operational Programmes “Attica” and “Central Macedonia” for the 2007 to 2013 programming period.