The SME Instrument and its power to leverage private investments

The European Commission recently published a report investigating the impact of the SME Instrument on funded companies. The report gave a thorough overview of the programme, including information regarding the profile of the winning companies, insights about their current and potential growth as well as the main aspects of the SME Instrument that make it unique. The report concluded that startups who win the SME Instrument have three times more chances to get private funding; here are also other major takeaways:

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

2. 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;

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

4. The reports also states that 15 months after receiving the SME Instrument funding, companies recording increase in turnover grow on average by 250%.

Full report at:

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