InvestEU Programme

A German biotech company needs €15 million to scale up production of its sustainable bioplastics. Traditional banks consider it too risky. Through InvestEU, the European Investment Bank provides a loan with favorable terms, backed by EU guarantees. This is how InvestEU works: not grants, but financial products (loans, equity, guarantees) that make financing possible for projects banks might otherwise reject.

At a Glance

What is InvestEU?

InvestEU is the EU’s flagship investment programme, bringing together previous EU financial instruments (like the European Fund for Strategic Investments) under one roof. It provides EU budget guarantees that enable partner financial institutions to finance projects that support EU policy objectives.

How It Works

1. EU provides guarantees to implementing partners (financial institutions)
2. Partners use guarantees to de-risk financing for projects
3. Projects receive loans, equity, or guarantees on better terms than market rates
4. EU budget absorbs some risk, enabling financing for projects that wouldn’t otherwise happen

Important: NOT a Grant Programme

InvestEU provides:

• ✅ Loans (must be repaid)
• ✅ Equity investments (giving up ownership stake)
• ✅ Guarantees (enabling you to access other financing)
• ❌ Grants (free money you don’t repay)

If you need non-repayable funding, look at Horizon Europe, ERDF, or other EU grant programmes.

The Four Policy Windows

InvestEU is organized into four thematic windows:

1. Sustainable Infrastructure (€9.9B guarantees)

Focus areas:

• Sustainable transport and mobility
• Energy efficiency and renewable energy
• Digital connectivity and infrastructure
• Water and waste management
• Sustainable urban development

Typical projects:

• Renewable energy installations
• Electric vehicle charging networks
• Smart grid infrastructure
• Sustainable housing developments
• Water treatment facilities

2. Research, Innovation and Digitalization (€6.6B guarantees)

Focus areas:

• R&D activities and technology transfer
• Innovative companies and scale-ups
• Digitalization of industry
• Key enabling technologies
• Space industry and applications

Typical projects:

• Deep tech venture capital investments
• Research commercialization
• Digital transformation of SMEs
• Artificial intelligence deployment
• Innovative manufacturing facilities

3. SMEs (€6.9B guarantees)

Focus areas:

• SME financing gaps
• Mid-cap company growth
• Access to finance for small businesses
• Working capital and growth capital

Typical projects:

• Growth financing for SMEs
• Export financing
• Working capital facilities
• Acquisition financing
• Equity investments in startups

4. Social Investment and Skills (€2.8B guarantees)

Focus areas:

• Education and training infrastructure
• Social housing
• Healthcare and long-term care
• Social enterprises
• Skills development and employment

Typical projects:

• University and school buildings
• Affordable housing developments
• Hospital modernization
• Microfinance for social enterprises
• Upskilling and reskilling programmes

How to Access InvestEU Financing

Step 1: Understand the Model

You don’t apply directly to InvestEU. Instead, you approach implementing partners—financial institutions that have signed agreements with the EU to deploy InvestEU-backed financing.

Step 2: Identify the Right Partner

Main Implementing Partners:

National Promotional Banks (examples):

• KfW (Germany)
• Bpifrance (France)
• CDP (Italy)
• ICO (Spain)
• BGK (Poland)
• British Business Bank (UK—prior to Brexit)

Step 3: Prepare Your Project

Like any financing, you’ll need:

• Business plan and financial projections
• Evidence of viability (revenue model, market analysis)
• Collateral or security (in many cases)
• Track record (for larger amounts)
• Alignment with EU policy priorities

Step 4: Apply to the Partner

Each implementing partner has its own application process:

• EIB: Direct application for large projects; intermediated for smaller
• EIF: Through financial intermediaries (banks, VC funds)
• National banks: Through their standard processes

InvestEU Advisory Hub

Free Technical Assistance

The InvestEU Advisory Hub provides:

• Project development support
• Feasibility studies
• Financial structuring advice
• Capacity building for project promoters
• Connection to potential investors

How to Access

Visit the Advisory Hub online or contact your national promotional bank for local support. Advisory services are free of charge.

When to Use

• Early-stage project development
• Complex financing structures
• Public-private partnerships
• First-time project promoters
• Cross-border projects

InvestEU Portal

Project Matchmaking

The InvestEU Portal connects:

• Project promoters seeking finance
• Investors looking for opportunities

Features

• Publish your project for investor visibility
• Search for relevant investors
• Access resources and guidance
• Connect with similar projects

How to Use

Register your project at investeu.europa.eu/investeu-portal. Projects are visible to investors across Europe looking for opportunities aligned with EU priorities.

Eligibility Requirements

Geographic Eligibility

• Project must take place in an EU Member State
• Project promoter must be established in the EU (or have EU operations)
• Cross-border projects involving non-EU countries may be eligible in specific cases

Project Types

Financial Viability

Projects must demonstrate:

• Realistic revenue model or public funding commitment
• Capacity to repay loans (if loan financing)
• Acceptable risk profile (may be elevated, but not unbankable)

Additionality

InvestEU targets projects that:

• Would not happen without EU support
• Or would happen on worse terms
• Or would happen more slowly

Pure market-rate financing for low-risk projects doesn’t fit InvestEU’s mandate.

Typical Terms

Loans

Equity

Guarantees

Sector-Specific Considerations

For Deep Tech / Innovation Companies

Most relevant window: Research, Innovation and Digitalization

Access points:

• EIF through venture capital funds receiving InvestEU backing
• EIB Venture Debt for later-stage companies
• National innovation banks

Typical support:

• Equity investments via VC funds
• Venture debt for scaling
• Quasi-equity instruments

For Infrastructure Projects

Most relevant window: Sustainable Infrastructure

Access points:

• EIB direct lending for €25M+ projects
• National promotional banks for smaller projects
• Project finance structures

Typical support:

• Long-term senior loans
• Subordinated debt
• Project development assistance

For SMEs

Most relevant window: SMEs

Access points:

• Commercial banks with EIF guarantees
• National promotional bank loan programs
• Microfinance institutions

Typical support:

• Guaranteed loans with reduced collateral
• Working capital facilities
• Growth financing

For Social Projects

Most relevant window: Social Investment and Skills

Access points:

• EIB for large education/health infrastructure
• Social impact investors receiving EIF support
• National development banks

Typical support:

• Patient capital with longer payback
• Below-market rates for social outcomes
• Blended finance structures

Insider Tips

Preparing Your Application

• Know your implementing partner: Each has different focus areas, ticket sizes, and processes
• Demonstrate EU policy alignment: Green transition, digital transformation, and social impact score well
• Have realistic financials: InvestEU de-risks but doesn’t eliminate commercial logic
• Consider blending: Combine InvestEU financing with grants from Horizon Europe or Structural Funds
• Use the Advisory Hub: Free support for project structuring is valuable

Improving Your Chances

• Highlight additionality: Why can’t you get market financing?
• Show EU added value: Jobs, climate impact, innovation spillovers
• Prepare thorough documentation: Business plan, projections, risk analysis
• Engage early: Larger projects benefit from early conversation with EIB
• Consider portfolios: Groups of smaller projects can be bundled

Common Success Factors

• Strong management team and track record
• Clear revenue model or public funding commitment
• Alignment with multiple EU priorities (green + digital + social)
• Realistic financial projections
• Appropriate risk/return balance

Common Mistakes to Avoid

Conceptual Errors

• Expecting grants: InvestEU is financing, not free money
• Ignoring viability: Projects must be bankable (with EU support)
• Wrong window: Sustainable infrastructure project pitched as SME financing
• Assuming automaticity: EU guarantee doesn’t guarantee approval

Application Problems

• Weak financials: Optimistic projections without substance
• No EU alignment: Projects without policy relevance
• Wrong partner: Applying to EIB for €500K project (too small)
• Missing additionality: Projects that could easily get market financing

Process Issues

• Starting too late: Large project financing takes 6-18 months
• Insufficient documentation: Business plans, permits, contracts needed
• Ignoring covenants: Understanding ongoing obligations matters
• Skipping Advisory Hub: Free support underutilized

Frequently Asked Questions

Can startups access InvestEU?

Yes, primarily through VC funds backed by the European Investment Fund. Direct EIB financing typically requires established revenues.

Is InvestEU the same as EFSI?

InvestEU replaced EFSI (European Fund for Strategic Investments) in 2021, consolidating multiple instruments into one programme.

What’s the minimum project size?

Varies by partner. EIB typically: €25M+ for direct loans. National banks: Often €100K+. Through intermediaries: Can be smaller.

How long does the process take?

For direct EIB loans: 6-18 months. Through commercial bank with EIF guarantee: Similar to normal bank lending. Through VC fund: Standard VC timeline.

Can NGOs access InvestEU?

Potentially, if the project generates revenue or has secured public funding to repay loans. Social enterprises are specifically targeted in the Social Investment window.

Does InvestEU fund pilot projects?

Generally, InvestEU finances commercialization and scaling. For research and piloting, look at Horizon Europe grants combined with InvestEU for scaling.

Can I combine InvestEU with other EU funding?

Yes, blending is encouraged. Horizon Europe grants for R&D + InvestEU loans for commercialization is a common combination.

Is InvestEU Right for Your Project?

Strong fit if:

• You need significant financing (€500K+)
• Your project is bankable but faces financing gaps
• You align with EU sustainability, digital, or social priorities
• You’re willing to repay (loan) or give up equity
• Market-rate financing isn’t available or affordable

Not the right fit if:

• You need grant funding (non-repayable)
• Your project lacks revenue model
• You’re seeking very small amounts (<€100K typically)
• Your project is purely commercial with no EU policy alignment
• You’re located outside the EU

InvestEU represents one of the largest sources of investment support in Europe—but as financing rather than grants. For projects that need scale, have viable business models, and align with EU priorities, it can unlock substantial capital at favorable terms that wouldn’t otherwise be available.