EAF Ireland is a joint initiative of the European Investment Fund (“EIF”) and Enterprise Ireland. The initiative has a volume of EUR 20m and supports, through co-investments, the financing activities of business angels and, thereby, SME financing. With EAF Ireland, the EIF’s concept of the European Angels Fund (“EAF”) expands to Ireland. The program was first launched in Germany and is operational in Austria, the Netherlands, Spain and Ireland and is about to be rolled-out to further geographies.
How do the European Angels Fund work?
EAF enters into long-term contractual relationships with Business Angels. Co-investment framework agreements (“CFAs”) are established through which the EAF grants a predefined amount of equity for co-investments to each Business Angel for future investments. For ease and speed, these CFAs are generally standardised while leaving room for adaptation to specific requirements of individual Business Angels.
The Business Angels take all investment decisions and EAF matches them on a pari passu basis. The volumes available under an individual CFA range between EUR 250k and EUR 4m. The EAF does not pay a fee to the Business Angel but shares investment-related costs on a pro-rata basis.
Benefits for the Business Angels
The EAF has a unique set-up which is adapted to the Business Angels’ investment style and needs. It provides significant financial support while granting a maximum amount of freedom to each Business Angel. Carry payments from the EAF to the Business Angel allows for an increase of the upside of the Business Angels investments. Through the EAF, Business Angels can draw on the expertise and network of the EIF, one of the most experienced Venture Capital investors in Europe. At the same time, administration processes remain lean so that Business Angels can fully focus on their investment activity. A standardised reporting tool will allow for simple and efficient reporting.
For more information and details on application, please go to EAF Ireland