The European Investment Bank (EIB) is providing €12 million to the e-bike company Fazua.
The funds are being made available through the EU bank’s Venture Debt Product, a type of risk capital for innovative companies. The loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI). EFSI is a core component of the Investment Plan for Europe (IPE), also known as the Juncker Plan, under which the EIB and the European Commission are working together as strategic partners to boost the competitiveness of the European economy.
Fazua, which is based in Munich, intends to use the funds for the expansion of the company and for research and development activities.
EIB vice president Ambroise Fayolle, responsible for operations in Germany and EFSI, said: “With our higher-risk financing operation for Fazua, we are closing a gap in the market for highly innovative SMEs, which need long-term growth capital without the risk of dilution. Fazua can now fully concentrate on its business growth and the development of follow-up products.”
He added: “The project is an excellent example of the added value that the Investment Plan for Europe offers young, innovative companies. Our cooperation with Fazua, made possible by the Juncker Plan, shows how Europe can promote innovation and competitiveness.”
European Commission vice president Valdis Dombrovskis, responsible for the Euro and Social Dialogue, also in charge of financial stability, financial services and capital markets union, said: “By guaranteeing the EIB’s financing to Fazua, the Juncker Plan once again shows its support for an innovative, ambitious, EU-based startup keen to scale up and develop new products to bring to market. Fazua’s ongoing success translates into more jobs and sustained growth for the local economy, which is the core focus of the Juncker Commission.”
Fazua’s CEO Fabian Reuter also welcomed the financing agreement: |The capital provided by the EIB is the ideal financing instrument for us in our current business phase. In addition to the ‘evation’ drive system, which has already been very successfully launched on the market, we can now invest even more in the expansion of our product range.”
He also stressed the importance of the production and development site in Ottobrunn near Munich. “It is crucial for us to maintain our successful business model with the highest quality standards, production under our own roof in Germany and reliable partners, most of whom also come from Europe,” said Reuter.