AMSTERDAM, December7th2021- European SME financing platform October secured a €30million commitment from theEuropean Investment Fund (EIF) and theDutchimpact investorInvest-NLin the context of the European Guarantee Fundand the DutchAlternativeCreditInstrumentmandates. Invest-NLinvests€10millioninthe October SME IV fund, EIF invests€20 million.The fund, which has now reached a size of €215 million, is dedicated to supporting the growth of European SMEs.
The investment of Invest-NL and the EIF takes place in the context of the Dutch Alternative Credit Instrument (DACI) initiative,recentlylaunched by the Dutch government, Invest-NL and the EIF. DACI is a fund of funds investing in debt funds with the aim of providing access to alternative sources of financing for Dutch SMEs, chiefly via non-bank financiers.This investmentis Invest-NL's firstoneunder the DACIinitiativefor the benefit ofDutch SMEs.
The October SME IV fund is the fourth generation of October diversified SME debt funds. The fund offers institutional investors direct exposure to a portfolio of loans granted to businesses in France, Italy, Spain, the Netherlands and Germany. Invest-NL is the first major Dutch impactinvestor joining a community of renowned institutions spanning across the entirety of Europe, including the French investment bank Bpifrance and the French insurance company CNP Assurances, the ItalianCassaDepositi e Prestiti (CDP) and the Spanish Instituto de Crédito Oficial (ICO).
With 590 projects financed to date for a total amount of EUR 154 million, the October SME IV fund offers investors a highly diversified and granular portfolio of loans with amounts ranging from €30,000 to €5 million. To date about 20% of the portfolio has been financed by October Nederland. The fund, whose investment period started back in March 2020, has a unique risk-return profile with a significant portion of the loans benefitting from an up-to-90% state guarantee in Italy, France and the Netherlands.
Luuc Mannaerts, CEO of October Netherlands, speaks of a pivotal and much-needed development for Dutch small and medium sized enterprises: "The investment of these two parties shows confidence in October and our technology. SMEs need a simple financing process and investors are looking for the right channel to lend money. October's platform brings these two needs together and enriches the funding landscape for European SMEs. As the first Dutch institutional investor of October, Invest-NL sets an example for other large institutions."
Wouter Bos, CEO of Invest-NL added: "This first investment by Invest-NL via the DACI initiative marks the importance of providing financial solutions to Dutch SMEs supporting them to grow their businesses. Straightforward financing processes enabled by the technology platform of October secureaccessto capital that is much needed by smaller companies in the Netherlands."
Alain Godard, EIF chief executive, welcomes Europe's involvement in the October SME IV fund: "European SMEs need to be able to benefit from sources of financing that are both innovative and easy to access. This is what the European fintech October provides, as it has already financed many European SMEs and is one of the most promising financing technology platforms."
Background information:
About October
Octoberis a European FinTech specialized in business lending. Leader in continental Europe, it has already financed thousands of SMEs for a total amount of €650m in France, Spain, Italy, the Netherlands and Germany.Since late 2020, its technological platform October Connect is helping banks such as Bpifrance and asset managers in making better financing decisions based on data.October is part of the Next40, the 40 most promising French scale-ups (a label awarded by the French government), and has among its shareholders Allianz, CNP Assurances, CIR Group, Decaux FrèresInvestissem*nt,Eurazeoand Partech. October is a co-founder of the SME Financing Foundation in the Netherlands, which is supported by the Dutch Ministry of Economic Affairs.
About Invest-NL
Invest-NL is an impact investor committed to businesses and projects that will make the Netherlands more sustainable and innovative. Its focus lies on carbon-neutral and circular economy and on innovative, fast-growing companies, or scale-ups. Invest-NL supports innovative entrepreneurs through financing and advice according to one simple principle: impact is ourgoal,return is our means. As the Dutch partner for European investment institutions, Invest-NL isdedicated to cooperation and always works together with other investors. Invest-NL is headquartered in Amsterdam and employs a staff of 70 people.
About EIF
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its main goal is to support microenterprises and SMEs by helping them to access financing. The EIF designs and deploys venture capital, growth capital, guarantee and microfinance instruments specifically targeted at this market segment. Its activities foster EU objectives promoting innovation, research and development, entrepreneurship, growth and job creation.
Press contacts:
EIF: Christophe Alix, c.alix @eib.org, tel.:+352 4379 84303, mobile: +33 6 11 81 30 99
Website: www.eif.org – Press Office: +352 4379 21000 – press@eib.org – Follow us on Twitter
Invest-NL: PaulHartogsveld, pers@invest-nl.nl, tel. +31 611589127
Website: www.invest-nl.nl
October: Edwin vanDruten, edwin@hibou.nl, tel. +31 (0)622771160
Website: https://nl.october.eu
