Financial Engineering

Project information

Index: 0004R1
Priority:1: Innovation and the knowledge economy
Sub Theme:Innovation, research and technology development
Location ITALY NORD-EST Venice Veneto Start/End date of the practice
Start: 2007-01-01
End: still ongoing

Topic of the practice

Investments to support innovation in SMEs

Good Practice Information

Objectives of the practice are
– to decrease the costs for innovative investments,
- to enhance the access to the credit system for SMEs,
- to launch a venture capital fund for start-ups and companies at an early stage.
Even though there is a high level of entrepreneurial activity in Veneto, private funds, which companies/starts-ups can apply to, are still lacking. The credit system is often beyond the SMEs reach and is rather reluctant to give loans without the proper guarantees. Public funds for innovation and research are usually connected to periodic calls which are not always in line with the company’s timescale and needs. To overcome these barriers, a well balanced mix of financial engineering tools, focused on research and innovation, has been set up.
The Financial Engineering actions include three integrated tools:
1- System of guarantee for innovative investments
2- Revolving Fund for SMEs innovative investments
3- Venture Capital and private equity Fund
The Regional Authority, by means of public tenders, charges externals (under specific requirements) to act as managing bodies.
Financial framework of the practice is: ERDF Fund for a total fund of 95 mil (only public side); Guarantee fund: 35 min (public fund) + 35 min (private fund); Revolving fund: 45 min (public fund) + 45 min (private fund); Venture capital: 15 min (public fund) + 15 min (private fund).
Success factors are:
- amount of funds which is available for SMEs in a long-term perspective,
- private-public partnership
- open calls and spread (through out the region) support which means that SMEs are not forced to meet specific deadlines but are free submit their proposals according to their needs.

Evidence of success

This a good practice of mix financial support for SMEs.
Foreseen outcomes of the practice:
+10% of new companies established through this programme
More than 500 companies supported with the financial facilities.

Contact details to obtain further information on the practice

Ivan Boesso, Michele Pelloso, Maria Sole D'Orazio

Veneto Region - Industry and Craft Section;;

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