| Project Detail |
The project consists in a quasi-equity investment in Safeheal, a medical technology company based in France aiming to bring to market a solution to make colorectal cancer surgery more efficient and safer for patients.
Additionality and Impact
The Operation contributes to the InvestEU objective of research, development and innovation. The purpose of the loan is to provide direct, equity-type financing under EIBs Venture Debt Instrument to support research, development and innovation activities of the innovative company SafeHeal, a medical technology company based in France. The financing of this project addresses the failure in financial markets for RDI, arising from limited access to commensurate financing as a result of factors such as information asymmetries, misalignment of incentives, etc. The Company focuses on the development of innovative solutions to improve colorectal cancer surgeries by making them less intrusive to patients. By creating knowledge externalities, the project is expected to provide significant socio-economic benefits, will strengthen France and Europes position in the field of advanced therapies, and it will help to create and retain skilled staff engaged in the Companys RDI activities. Thanks to the support of InvestEU, the EIB may provide long term financing in the form of venture debt to a highly innovative but high-risk early-stage company with no access to commercial debt. By contributing to extending the cash runway and therefore to de-risking the development plan of the company, the innovative EIB financing is expected to crowd-in third party investors (such as Venture Capitals, Strategic Investors, Private Equity players, etc.) and allow the company to accelerate its development and forming strategic alliances. The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.
Objectives
The investment will finance the companys research, development and innovation (RDI) expenses as well as regulatory activities.
Sector(s)
Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 15 million
Total cost (Approximate amount)
EUR 44 million |
