Does the SME Instrument help leverage private investments?

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The European Commission recently published a report investigating the impact of the SME Instrument on funded companies. The report gives a thorough overview of the programme, by providing data since its start in 2014 until the end of 2016. More specifically, it contains information regarding the profile of the winning companies, some insights about their current and potential growth as well as the main aspects of the SME Instrument that make it unique. Here are some of the key takeaways from this report:

  • After the SME Instrument funding companies raise higher investment rounds (€4.3M) than before (€2.8M);

  • The SME Instrument speeds-up time-to-investment: Before obtaining SME Instrument funding, companies needed on average 32 months to get next investment compared to only 9 months after;

  • SME Instrument has a potential for high leverage effect: Only 3 years after the start of SME Instrument, each 1€ invested generated already €1 of private investment;

  • The investors prefer to invest locally. The majority of investments came, unsurprisingly, from Western Europe; Northern Europe received the highest investments, as Northern investors (2nd best) invest almost exclusively in their home region;

  • It is stated that 15 months after receiving the SME Instrument funding, companies recording increase in turnover grow on average by 250%.

In the past 2 years, more than 2000 startups have been funded through the SME Instrument. The results show quite clearly that being funded from the SME Instrument has a net positive effect on your startup. Contact us if you have any questions related to your application. If you’re not sure if you’re eligible, check out our free eligibility check tool from EU Startup Services.

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