EIF mobilises growth capital for European innovative companies

Key takeaways

• The European Investment Fund (EIF) has strengthened its partnership with BNP Paribas under the InvestEU programme by adding EUR250 million in uncapped guarantees to their existing EUR75 million guarantee agreement.
• The expanded envelope of EUR325 million is expected to unlock approximately EUR500 million of growth capital for European innovative companies across the real economy, helping boost European innovation, sustainability and competitiveness.
• The initiative will enable BNP Paribas to increase its debt financing support for European scale-ups, reinforcing the Bank’s ambition to finance innovative and sustainable companies throughout the region.

Across Europe, innovative startups, scale-ups and small and medium-sized enterprises (SMEs) continue to face challenges in accessing the growth capital they need to scale. SMEs are a cornerstone of Europe’s economy, representing around 99% of European businesses and employing nearly two-thirds of the EU workforce. Numerous EU initiatives aim to boost their competitiveness, facilitate access to financing and foster innovation. Although Europe offers a welcoming environment for startups and scale-ups to flourish, a significant funding gap still remains.

The European Investment Fund’s role in driving access to growth capital

At the heart of Europe’s investment landscape, the European Investment Fund (EIF) – part of the European Investment Bank (EIB) – is playing a pivotal role in improving access to growth capital for startups, scale-ups and SMEs across Europe. As the EIB’s specialist provider of equity, guarantees, and securitisations, the EIF mobilises private investment and supports the broader venture capital ecosystem. Through its partnerships with banks and investment funds, the EIF directs growth capital toward European innovative companies. “In 2025, the EIB Group signed through the EIF close to EUR5 billion in guarantees across Europe, contributing to increase the financing for small and medium-sized businesses. Guarantees allow banks to expand financing to the real economy and support more risky projects, which in turn drive innovation,” explains Ambroise Fayolle, vice-president of the European Investment Bank.

Unlocking growth capital to foster European innovation

As an example, the EIF has expanded its partnership with BNP Paribas. The EIF is providing a further EUR250 million in uncapped guarantees to the Bank, on top of the EUR75 million agreement already in place. With this increase, the total now reaches EUR325 million in guarantees, which is estimated to mobilise approximately EUR500 million of financing in the real economy. Ambroise Fayolle emphasises: “By allocating EUR250 million more in guarantees to BNP Paribas, we increase financing for SMEs actively engaged in the twin transition – green and digital.”

This expanded envelope aims to support scale-ups across the EU by enabling the origination of up to 100 new venture debt transactions over a three-year period. Backed by InvestEU, the initiative will contribute to advancing European innovation, sustainability and competitiveness. “This renewed collaboration reinforces our long‑standing relationship with BNP Paribas and builds on the Bank’s excellent track record and capabilities,” adds Marjut Falkstedt, Chief Executive of the European Investment Fund.

A targeted approach to delivering growth capital to European innovative companies

For BNP Paribas, this reinforced partnership with the EIF is aligned with the Bank’s ambition to enable growth and innovation in the European economy. Alain Papiasse, Chairman of Corporate and Institutional Banking, BNP Paribas, explains: “By joining forces with the EIF, we are taking an innovative approach to supporting European growth. This partnership strengthens our ability to mobilise growth capital and better support innovative companies, thus contributing to Europe’s competitiveness and long‑term economic resilience.”

The financing envelope will be deployed across three targeted portfolios, overseen by experts from BNP Paribas Growth Capital & Solutions (GC&S) and Risk, working in coordination with teams from BNP Paribas CIB and Commercial, Personal Banking & Services (CPBS) throughout Europe. Christopher Kramme, Head of BNP Paribas Growth Solutions, adds: “This guarantee is a recognition of our commitment to driving European innovation and making a positive impact on the region’s growth.” The Innovation and Digitalisation Portfolio will boost the growth of innovative SMEs and Small & Mid Caps, including in the deeptech space. The Sustainability Climate Change Mitigation Portfolio will back projects in areas such as renewable energy, energy‑efficient buildings, industrial efficiency, low‑emission mobility and green tech. The Sustainability SMEs and Small Mid-Caps Portfolio will drive investments in companies advancing the European economy’s green and sustainable transformation.

Chrisdèle M’Bemba, Managing Director for FIC OIC, continental Europe coverage, notes: “We are proud to strengthen our partnership with the EIF, and this increased envelope reflects the trust we’ve built together. Through BNP Paribas’ client network, we accelerate the impact of EIB Group initiatives in areas aligned with our shared priorities.” This collaboration boosts BNP Paribas’ capacity to invest in high-impact early-stage projects, while upholding its rigorous credit standards and due diligence. The Bank’s Growth Capital & Solutions team has deployed an advanced proprietary data, technology and analytics platform, enabling real-time tracking of business models and goals for robust monitoring of investments. Through these guarantees, BNP Paribas can deepen its activity and reach, with the support of its 200 banking experts in the region specialised in supporting European innovative companies.